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Category: Taxation

  • MIL-OSI USA: Risch, Crapo, Thune Led Effort to Permanently Repeal the Death Tax

    US Senate News:

    Source: United States Senator for Idaho James E Risch

    WASHINGTON – U.S. Senator Jim Risch (R-Idaho), Mike Crapo (R-Idaho), and Majority Leader John Thune (R-S.D.) led 43 Senate colleagues in introducing legislation to permanently repeal the federal estate tax, commonly known as the death tax. The Death Tax Repeal Act would end this unnecessary, punitive tax that can significantly impact family-run farms, ranches, and businesses after the death of a family member.

    “The death tax unfairly targets Idaho’s multi-generational farms and small businesses by saddling them with a costly tax bill after the death of a loved one. We must stop this madness and protect America’s family-run operations,” said Risch. 

    “Small businesses are the lifeblood of Idaho’s economy, and family farmers, ranchers and entrepreneurs have often worked lifetimes to grow their businesses,” said Crapo. “The death tax can be a devastating blow to American families who want to pass down their farm or small business to the next generation. It’s time to permanently provide relief from this unfair tax.”

    “Family farms and ranches play a vital role in our economy and are the lifeblood of rural communities in South Dakota,” said Thune. “Losing even one of them to the death tax is one too many. It’s time to put an end to this punishing, burdensome tax once and for all so that family farms, ranches and small businesses can grow and thrive without costly estate planning or massive tax burdens that can threaten their viability.”

    The legislation is cosponsored by U.S. Senators Jim Banks (R-Ind.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Katie Britt (R-Ala.), Ted Budd (R-N.C.), Shelley Moore Capito (R-W.Va.), John Cornyn (R-Texas), Tom Cotton (R-Ark.), Kevin Cramer (R-N.D.), Ted Cruz (R-Texas), John Curtis (R-Utah), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Deb Fischer (R-Neb.), Lindsay Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), John Hoeven (R-N.D.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), Jim Justice (R-W.Va.), John Kennedy (R-La.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Mitch McConnell (R-Ky.), Dave McCormick (R-Pa.), Jerry Moran (R-Kan.), Bernie Moreno (R-Ohio), Markwayne Mullin (R-Okla.), Pete Ricketts (R-Neb.), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Tim Scott (R-S.C.), Tim Sheehy (R-Mont.), Thom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), and Todd Young (R-Ind.). ?

    MIL OSI USA News –

    February 20, 2025
  • MIL-OSI USA: President of Insurance Brokerage Firm and CEO of Marketing Company Charged in $161M Affordable Care Act Enrollment Fraud Scheme

    Source: US State of California

    An indictment was unsealed today charging Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, in connection with their alleged participation in a scheme to submit fraudulent enrollments to fully subsidized Affordable Care Act insurance plans (ACA plans) in order to obtain millions of dollars in commission payments from insurance companies.

    ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” could be paid by the federal government directly to insurance plans in the form of a payment toward the applicable monthly premium. According to court documents, Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd allegedly received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd allegedly paid commissions to Strong in exchange for consumer referrals.

    As alleged in the indictment, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Strong’s company allegedly coached consumers on how to respond to application questions to maximize the subsidy amount and provided addresses and social security numbers that did not match the consumers purportedly applying. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced disruptions in their medical care.

    The indictment alleges that Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially projected having no income. Lloyd and Strong also allegedly conspired to bypass the federal government’s attempts to verify income and other information. Lloyd and Strong allegedly engaged in the scheme to maximize the commission payments they received from insurers, resulting in their companies’ receiving millions of dollars in commissions.

    As alleged in the indictment, Lloyd and Strong’s scheme caused the federal government to pay at least $161,900,000 in subsidies.

    Cory Lloyd and Steven Strong are each charged with conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to defraud the United States, and two counts of money laundering. If convicted, each faces a maximum penalty of 20 years in prison on each count of conspiracy to commit wire fraud and wire fraud, five years in prison for conspiracy to defraud the United States, and 10 years in prison for each count of money laundering.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting Special Agent in Charge Justin Fleck of the FBI Miami Field Office, Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office, and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.

    The FBI, HHS-OIG, and IRS-CI are investigating the case.

    Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

    February 20, 2025
  • MIL-OSI Security: President of Insurance Brokerage Firm and CEO of Marketing Company Charged in $161M Affordable Care Act Enrollment Fraud Scheme

    Source: United States Attorneys General 1

    An indictment was unsealed today charging Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, in connection with their alleged participation in a scheme to submit fraudulent enrollments to fully subsidized Affordable Care Act insurance plans (ACA plans) in order to obtain millions of dollars in commission payments from insurance companies.

    ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” could be paid by the federal government directly to insurance plans in the form of a payment toward the applicable monthly premium. According to court documents, Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd allegedly received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd allegedly paid commissions to Strong in exchange for consumer referrals.

    As alleged in the indictment, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Strong’s company allegedly coached consumers on how to respond to application questions to maximize the subsidy amount and provided addresses and social security numbers that did not match the consumers purportedly applying. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced disruptions in their medical care.

    The indictment alleges that Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially projected having no income. Lloyd and Strong also allegedly conspired to bypass the federal government’s attempts to verify income and other information. Lloyd and Strong allegedly engaged in the scheme to maximize the commission payments they received from insurers, resulting in their companies’ receiving millions of dollars in commissions.

    As alleged in the indictment, Lloyd and Strong’s scheme caused the federal government to pay at least $161,900,000 in subsidies.

    Cory Lloyd and Steven Strong are each charged with conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to defraud the United States, and two counts of money laundering. If convicted, each faces a maximum penalty of 20 years in prison on each count of conspiracy to commit wire fraud and wire fraud, five years in prison for conspiracy to defraud the United States, and 10 years in prison for each count of money laundering.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting Special Agent in Charge Justin Fleck of the FBI Miami Field Office, Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office, and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.

    The FBI, HHS-OIG, and IRS-CI are investigating the case.

    Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

    February 20, 2025
  • MIL-OSI USA: Expanding Next-Generation Battery Innovation Company

    Source: US State of New York

    Governor Kathy Hochul and Senator Charles Schumer today announced that BAE Systems is investing $65 million to expand operations in the Village of Endicott, Broome County. The company will add a total of 150,000 square-feet to its existing site to make way for the addition of a new battery production line and lab space, and new office space. As a result of the expansion, the company has committed to creating up to 134 good-paying jobs onsite. BAE Systems is a global defense, aerospace and security company with approximately 93,500 employees worldwide. The BAE Systems facility in Endicott designs, develops and produces a broad portfolio of safety-critical electronic systems from flight and engine controls to power and energy management systems. The company has been operational at the Huron Campus site since 2011.

    “BAE Systems’ decision to further expand its business represents yet another win for New York State and for the Southern Tier, which is laser focused on becoming a global hub for next-generation battery innovation efforts,” Governor Hochul said. “Since taking office, I have remained committed to bringing jobs back to Upstate New York. This incredibly successful company chose to grow its operations here, spurring top-quality, good-paying job creation in the region because they have seen firsthand how hardworking New Yorkers are.”

    Senator Charles Schumer said,“BAE Systems is adding 130+ good-paying jobs right here in the Southern Tier to make sure the next generation of America’s batteries are stamped ‘Made in Upstate NY.’ This $65 million expansion to add a new battery production line, research lab, and office helps show how we can bring this supply chain back from overseas, with the Southern Tier leading the way to make sure the future of battery manufacturing is manufactured in Broome County, not Beijing. BAE Systems is a vital part of the Southern Tier economy, with a world-class workforce of over 1200 people, and selecting this area for their major battery production expansion is no accident. I’m proud of the millions in federal support I’ve delivered – via the American Rescue Plan and my bipartisan CHIPS & Science Act – to the region to make it a global center for battery research and set the stage for today’s announcement. Today BAE is helping add another loop to establish this region as a core of manufacturing and innovation for America’s battery belt.”

    The project involves the expansion of BAE Systems battery production line, including the purchase and installation of machinery and equipment to efficiently produce an energy storage system for electric/hybrid electric aircraft. This facility will include an automated state-of-the-art production line, an engineering lab, and an aftermarket center, and is expected to be fully complete in 2027.

    Empire State Development is assisting the project with up to $8.5 million in performance-based Excelsior Jobs Tax Credit Program in exchange for the job creation commitments. Broome County is also providing assistance for the project.

    BAE Systems Senior Director Jim Garceau said, “This facility expansion reinforces our commitment to the Southern Tier and builds on New York State’s vision to create a regional hub for battery innovation. With this investment, we will enhance our capabilities to address the emerging needs of the next-generation hybrid/electric aircraft.”

    Bolstering Next-Generation Battery Innovation
    Governor Hochul and Senator Schumer were instrumental in the company’s decision having worked closely with company officials to ensure that the project would move ahead in New York’s Southern Tier region which is laser-focused on supporting next-generation energy efforts – a top priority for the governor and senator.

    In January 2024, the Governor and Senator announced that the U.S. National Science Foundation had designated the New Energy New York (NENY) Storage Engine as a Regional Innovation Engine (NSF Engine), which was created by the Senator’s bipartisan CHIPS & Science Law. The NENY Storage Engine, anchored at Binghamton University in the Southern Tier Region, will receive up to $15 million in federal funding for two years and up to $160 million over 10 years to establish a hub that will accelerate innovation, technology translation and the creation of a skilled workforce to grow the capacity of the domestic battery industry. Through Empire State Development, New York State will match up to 20 percent for the first five years of the project as well as provide support through established programs. The NENY Storage Engine was chosen for its diverse, cross-sector coalition that will build a leading ecosystem driving battery technology innovation, workforce development and manufacturing to support U.S. national security and global competitiveness.

    Schumer has long fought to secure federal investment to boost the Southern Tier’s battery manufacturing and R&D. In 2021, Schumer created the Build Back Better Regional Challenge in the American Rescue Plan that he led to passage as Majority Leader. The senator personally advocated for the selection of the Binghamton University-led New Energy New York’s (NENY) battery hub proposal, helping deliver a $63.7 million federal investment with a $50 million funding match from New York State. In 2023, Schumer also delivered the prestigious federal Tech Hub designation, also created by his bipartisan CHIPS & Science Law for the Binghamton University-led NENY proposal.

    Empire State Development President, CEO & Commissioner Hope Knight said, “Governor Hochul’s strategic and laser-focused support for next-generation clean energy companies accelerates this cutting-edge industry’s growing presence in New York State. BAE Systems’ expansion will create top-quality jobs and opportunities in the Southern Tier, furthering the region’s leadership in battery technology innovation.”

    New York State’s Climate Agenda
    New York State’s climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

    New York Power Authority President and CEO Justin E. Driscoll said, “BAE Systems has been a major driver of economic growth in Broome County, and I congratulate them on their new $65 million expansion. Thanks to strategic investments from Governor Hochul and Senator Schumer, New York has become a testbed for battery storage innovation, and NYPA will continue to support firms like BAE Systems developing cutting-edge technology and spurring economic growth with low-cost power.”

    New York State Energy Research and Development Authority President and CEO Doreen M. Harris said, “With this investment in next generation battery technology at their Broome County location, BAE Systems is supporting local jobs and strengthening the state’s clean energy supply chains, ensuring New York continues to lead the way in innovation and clean tech economic opportunity. The expansion will also advance clean transportation in the aviation industry and support NYSERDA’s efforts in research, development, and demonstration of new technologies in the energy storage sector.”

    State Senator Lea Webb said, “It’s exciting to see BAE Systems expand its next-generation battery innovation operations right here in the Southern Tier, bringing up to 134 new jobs to the Village of Endicott, ” said State Senator Lea Webb. “This investment strengthens our region’s role as a leader in clean energy technology and advanced manufacturing. I want to thank Governor Hochul for her commitment to growing our local economy and everyone who made this expansion possible. This investment not only creates new opportunities for workers but also reinforces New York’s leadership in the future of sustainable energy solutions.”

    Assemblymember Donna Lupardo said, “Years of hard work and dedication have made our area a designated hub for battery innovation and manufacturing. BAE’s expansion to include a new battery production line will further establish our community as a leader in clean-energy technology. Their work on electric/hybrid bus and aircraft battery systems are game changers for the industry and for our local workforce. I’d like to thank BAE Systems for their continued investment in our community, and the Governor and Empire State Development for their ongoing support of this important work.”

    Broome County Executive Jason Garnar said, “BAE Systems’ expansion in Endicott is another major win for Broome County, reinforcing our region’s role as leader in next-generation battery innovation while creating even more job opportunities for our community. Thank you to Governor Hochul for her continued commitment to economic growth in the Southern Tier and to BAE Systems for choosing to expand here in Broome County.”

    Village of Endicott Mayor Nick Burlingame said, “BAE Systems’ decision to expand its operations in Endicott is a testament to the strength of our community, our workforce, and our region’s commitment to innovation. This investment not only reinforces Endicott’s legacy as a hub for cutting-edge technology but also brings new opportunities for local families and businesses. We are proud to support BAE Systems as they continue to grow and shape the future of clean energy and battery innovation right here in our village. We look forward to the jobs, economic impact, and advancements this expansion will bring to Endicott.”

    For additional information about BAE Systems, visit: https://jobs.baesystems.com/global/en/.

    Accelerating Economic Development in the Southern Tier
    Today’s announcement advances the Southern Tier Strategic Plan and complements “Southern Tier Soaring” strategy by facilitating economic growth and community development. These regionally designed plans focus on attracting a talented workforce, growing business and driving next-generation innovation. More information is available here.

    About Empire State Development
    Empire State Development is New York’s chief economic development agency, and promotes business growth, job creation, and greater economic opportunity throughout the state. With offices in each of the state’s 10 regions, ESD oversees the Regional Economic Development Councils, supports broadband equity through the ConnectALL office, and is growing the workforce of tomorrow through the Office of Strategic Workforce Development.

    The agency engages with emerging and next generation industries like clean energy and semiconductor manufacturing looking to grow in New York State, operates a network of assistance centers to help small businesses grow and succeed, and promotes the state’s world class tourism destinations through I LOVE NY. For more information, please visit esd.ny.gov, and connect with ESD on LinkedIn, Facebook and X, formerly known as Twitter.

    MIL OSI USA News –

    February 20, 2025
  • MIL-OSI: NamSys Reports Results of Operations for Fiscal 2024

    Source: GlobeNewswire (MIL-OSI)

    TORONTO , Feb. 19, 2025 (GLOBE NEWSWIRE) — NamSys Inc. (the “Company”) (CTZ – TSX-V), a leading provider of technology for cash processing and transportation, today reports the results of operations for the fiscal year and the election of Nicole Sparks as the Non-Executive Chair of the Board of Directors. All amounts referenced herein are in Canadian dollars.

    Fiscal Year Highlights (for the twelve months ended October 31, 2024 compared to October 31, 2023)

    • Revenue of $6,840,146 increased by 12% or $747,126 compared to $6,093,020.
    • Gross profit of $4,269,368 increased by 17% or $616,868 compared to $3,652,500.
    • Net income of $2,090,475 ($0.08 per share) increased 29% or $475,600 compared to $1,614,875 ($0.05 per share).
    • A special dividend of $0.05 per common share was paid, returning $1,350,477 to shareholders.
    • Net cash of $8,047,351 increased by 11% or $829,039 compared to $7,218,312 and now represents $0.29 of net cash per diluted share.
    • The Company purchased and cancelled 355,600 common shares as part of the Normal Course Issuer Bid that commenced August 30, 2023 and ended August 30, 2024.

    “I’m pleased to announce our record results and the election of Ms. Sparks. She has served on the Board of Directors since April 2018 and succeeds her father, K. Barry Sparks, who retired as Chair on October 31, 2024 and sadly passed away on January 19, 2025.” commented Jason Siemens, President and CEO.

    The financial statements and Management’s Discussion and Analysis for the fiscal year ending October 31st, 2024 are available under the Company’s profile on SEDAR at www.sedarplus.ca.

    NamSys Inc. products are designed to bring efficiency to the processing of currency and other value instruments in retailers, financial institutions, and cash-in-transit providers. NamSys’ proprietary systems for this market are sold as software-as-a-service subscriptions and operate in the public cloud service providers.

    For further information, please contact:
    Mr. Jason Siemens, President & CEO
    ‪(289) 748-3685‬; mailto:ir@namsys.com

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This Media Release may contain forward-looking statements, which reflect the Corporation’s current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ from those projected herein and depend on a number of factors including the success of the Corporation’s sales strategies.

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Trupanion Reports Fourth Quarter & Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, Feb. 19, 2025 (GLOBE NEWSWIRE) — Trupanion, Inc. (Nasdaq: TRUP), a leading provider of medical insurance for cats and dogs, today announced financial results for the fourth quarter and full year ended December 31, 2024.

    “2024 was a milestone year for Trupanion. Strong execution drove 20% subscription revenue growth, the doubling of our subscription margin in Q4 from its quarterly low in 2023, and a record $39 million in free cash flow,” said Margi Tooth, Chief Executive Officer and President of Trupanion. “As we look to 2025, our focus remains on sustainable, measured growth while enhancing the member experience and improving retention.”

    Fourth Quarter 2024 Financial and Business Highlights

    • Total revenue was $337.3 million, an increase of 14% compared to the fourth quarter of 2023.
    • Total enrolled pets (including pets from our other business segment) was 1,677,570 at December 31, 2024, a decrease of 2% over December 31, 2023.
    • Subscription business revenue was $227.8 million, an increase of 19% compared to the fourth quarter of 2023.
    • Subscription enrolled pets was 1,041,212 at December 31, 2024, an increase of 5% over December 31, 2023.
    • Net income was $1.7 million, or $0.04 per basic and diluted share, compared to a net loss of $(2.2) million, or $(0.05) per basic and diluted share, in the fourth quarter of 2023.
    • Adjusted EBITDA was $19.4 million, compared to adjusted EBITDA of $8.5 million in the fourth quarter of 2023.
    • Operating cash flow was $23.7 million and free cash flow was $21.8 million in the fourth quarter of 2024. This compared to operating cash flow of $17.5 million and free cash flow of $13.5 million in the fourth quarter of 2023.

    Full Year 2024 Financial and Business Highlights

    • Total revenue was $1,286 million, an increase of 16% compared to 2023.
    • Subscription business revenue was $856.5 million, an increase of 20% compared to 2023.
    • Net loss was $(9.6) million, or $(0.23) per basic and diluted share, compared to a net loss of $(44.7) million, or $(1.08) per basic and diluted share, in 2023.
    • Adjusted EBITDA was $46.1 million, compared to adjusted EBITDA of $6.4 million in 2023.
    • Operating cash flow was $48.3 million and free cash flow was $38.6 million in 2024. This compared to operating cash flow of $18.6 million and free cash flow of $0.4 million in 2023.
    • At December 31, 2024, the Company held $307.4 million in cash and short-term investments, including $35.4 million held outside the insurance entities, with an additional $15 million available under its credit facility.
    • The Company maintained $288.0 million of capital surplus at its insurance subsidiaries. The largest insurance subsidiary, APIC, maintained $245.5 million of capital surplus, which was $140.2 million more than the company action level risk-based capital requirement.

    Conference Call
    Trupanion’s management will host a conference call today to review its fourth quarter and full year 2024 results. The call is scheduled to begin shortly after 1:30 p.m. PT/ 4:30 p.m. ET. A live webcast will be accessible through the Investor Relations section of Trupanion’s website at https://investors.trupanion.com/ and will be archived online for 3 months upon completion of the conference call. Participants can access the conference call by dialing 1-877-300-8521 (United States) or 1-412-317-6026 (International). A telephonic replay of the call will also be available after the completion of the call, by dialing 1-844-512-2921 (United States) or 1-412-317-6671 (International) and entering the replay pin number: 10194900.

    About Trupanion
    Trupanion is a leader in medical insurance for cats and dogs throughout the United States, Canada, certain countries in Continental Europe, and Australia with over 1,000,000 pets currently enrolled. For over two decades, Trupanion has given pet owners peace of mind so they can focus on their pet’s recovery, not financial stress. Trupanion is committed to providing pet parents with the highest value in pet medical insurance with unlimited payouts for the life of their pets. With its patented process, Trupanion is the only North American provider with the technology to pay veterinarians directly in seconds at the time of checkout. Trupanion is listed on NASDAQ under the symbol “TRUP”. The company was founded in 2000 and is headquartered in Seattle, WA. Trupanion policies are issued, in the United States, by its wholly-owned insurance entity American Pet Insurance Company and, in Canada, by Accelerant Insurance Company of Canada. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. Policies are sold and administered in Canada by Canada Pet Health Insurance Services, Inc. dba Trupanion 309-1277 Lynn Valley Road, North Vancouver, BC V7J 0A2 and in the United States by Trupanion Managers USA, Inc. (CA license No. 0G22803, NPN 9588590). Canada Pet Health Insurance Services, Inc. is a registered damage insurance agency and claims adjuster in Quebec #603927. Trupanion Australia is a partnership between Trupanion and Hollard Insurance Company. For more information, please visit trupanion.com.

    Forward-Looking Statements
    This press 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 relating to, among other things, expectations, plans, prospects and financial results for Trupanion, including, but not limited to, its expectations regarding its ability to continue to grow its enrollments and revenue, and otherwise execute its business plan. These forward-looking statements are based upon the current expectations and beliefs of Trupanion’s management as of the date of this press release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. All forward-looking statements made in this press release are based on information available to Trupanion as of the date hereof, and Trupanion has no obligation to update these forward-looking statements.

    In particular, the following factors, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the ability to achieve or maintain profitability and/or appropriate levels of cash flow in future periods; the ability to keep growing our membership base and revenue; the accuracy of assumptions used in determining appropriate member acquisition expenditures; the severity and frequency of claims; the ability to maintain high retention rates; the accuracy of assumptions used in pricing medical plan subscriptions and the ability to accurately estimate the impact of new products or offerings on claims frequency; actual claims expense exceeding estimates; regulatory and other constraints on the ability to institute, or the decision to otherwise delay, pricing modifications in response to changes in actual or estimated claims expense; the effectiveness and statutory or regulatory compliance of our Territory Partner model and of our Territory Partners, veterinarians and other third parties in recommending medical plan subscriptions to potential members; the ability to retain existing Territory Partners and increase the number of Territory Partners and active hospitals; compliance by us and those referring us members with laws and regulations that apply to our business, including the sale of a pet medical plan; the ability to maintain the security of our data; fluctuations in the Canadian currency exchange rate; the ability to protect our proprietary and member information; the ability to maintain our culture and team; the ability to maintain the requisite amount of risk-based capital; our ability to implement and maintain effective controls, including to remediate material weaknesses in internal controls over financial reporting; the ability to protect and enforce Trupanion’s intellectual property rights; the ability to successfully implement our alliance with Aflac; the ability to continue key contractual relationships with third parties; third-party claims including litigation and regulatory actions; the ability to recognize benefits from investments in new solutions and enhancements to Trupanion’s technology platform and website; our ability to retain key personnel; and deliberations and determinations by the Trupanion board based on the future performance of the company or otherwise.

    For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the Securities and Exchange Commission (SEC), including but not limited to, Trupanion’s Annual Report on Form 10-K for the year ended December 31, 2024 and any subsequently filed reports on Forms 10-Q, 10-K and 8-K. All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval system at https://www.sec.gov or the Investor Relations section of Trupanion’s website at https://investors.trupanion.com.

    Non-GAAP Financial Measures
    Trupanion’s stated results may include certain non-GAAP financial measures. These non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry as other companies in its industry may calculate or use non-GAAP financial measures differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on Trupanion’s reported financial results. The presentation and utilization of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Trupanion urges its investors to review the reconciliation of its non-GAAP financial measures to the most directly comparable GAAP financial measures in its consolidated financial statements, and not to rely on any single financial or operating measure to evaluate its business. These reconciliations are included below and on Trupanion’s Investor Relations website.

    Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expenses, Trupanion believes that providing various non-GAAP financial measures that exclude stock-based compensation expense and depreciation and amortization expense allows for more meaningful comparisons between its operating results from period to period. Trupanion offsets new pet acquisition expense with sign-up fee revenue in the calculation of net acquisition cost because it collects sign-up fee revenue from new members at the time of enrollment and considers it to be an offset to a portion of Trupanion’s new pet acquisition expense. Trupanion believes this allows it to calculate and present financial measures in a consistent manner across periods. Trupanion’s management believes that the non-GAAP financial measures and the related financial measures derived from them are important tools for financial and operational decision-making and for evaluating operating results over different periods of time.

     
    Trupanion, Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except share data)
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      (unaudited)        
    Revenue:              
    Subscription business $ 227,783     $ 191,537     $ 856,521     $ 712,906  
    Other business   109,524       104,320       429,163       395,699  
    Total revenue   337,307       295,857       1,285,684       1,108,605  
    Cost of revenue:              
    Subscription business   181,614       158,631       706,851       613,686  
    Other business   102,770       97,162       400,035       363,903  
    Total cost of revenue(1), (2)   284,384       255,793       1,106,886       977,589  
    Operating expenses:              
    Technology and development(1)   8,172       5,969       31,255       21,403  
    General and administrative(1)   16,828       13,390       63,731       60,207  
    New pet acquisition expense(1)   18,354       17,189       71,379       77,372  
    Goodwill impairment charges   5,299       —       5,299       —  
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Total operating expenses   52,577       39,577       188,130       171,456  
    Gain (loss) from investment in joint venture   2       (79 )     (182 )     (219 )
    Operating income (loss)   348       408       (9,514 )     (40,659 )
    Interest expense   3,427       3,697       14,498       12,077  
    Other expense (income), net   (4,773 )     (1,256 )     (14,374 )     (7,701 )
    Income (loss) before income taxes   1,694       (2,033 )     (9,638 )     (45,035 )
    Income tax expense (benefit)   38       130       (5 )     (342 )
    Net income (loss) $ 1,656     $ (2,163 )   $ (9,633 )   $ (44,693 )
                   
    Net income (loss) per share:              
    Basic $ 0.04     $ (0.05 )   $ (0.23 )   $ (1.08 )
    Diluted $ 0.04     $ (0.05 )   $ (0.23 )   $ (1.08 )
    Weighted average shares of common stock outstanding:              
    Basic   42,402,323       41,716,527       42,158,773       41,436,882  
    Diluted   42,903,536       41,716,527       42,158,773       41,436,882  
                   
    (1)Includes stock-based compensation expense as follows: Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Cost of revenue $ 1,337     $ 1,478     $ 5,523     $ 5,279  
    Technology and development   1,160       861       4,934       2,846  
    General and administrative   4,261       3,269       15,696       17,717  
    New pet acquisition expense   1,536       1,693       7,279       7,319  
    Total stock-based compensation expense $ 8,294     $ 7,301     $ 33,432     $ 33,161  
                   
    (2)The breakout of cost of revenue between veterinary invoice expense and other cost of revenue is as follows:
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Veterinary invoice expense $ 245,663     $ 217,739     $ 949,148     $ 831,055  
    Other cost of revenue   38,721       38,054       157,738       146,534  
    Total cost of revenue $ 284,384     $ 255,793     $ 1,106,886     $ 977,589  
                                   
     
    Trupanion, Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except share data)
      December 31, 2024   December 31, 2023
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 160,295     $ 147,501  
    Short-term investments   147,089       129,667  
    Accounts and other receivables, net of allowance for credit losses of $1,117 at December 31, 2024 and $1,085 at December 31, 2023   274,031       267,899  
    Prepaid expenses and other assets   15,912       17,022  
    Total current assets   597,327       562,089  
    Restricted cash   39,235       22,963  
    Long-term investments   373       12,866  
    Property, equipment and internal-use software, net   102,191       103,650  
    Intangible assets, net   13,177       18,745  
    Other long-term assets   17,579       18,922  
    Goodwill   36,971       43,713  
    Total assets $ 806,853     $ 782,948  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 11,532     $ 10,505  
    Accrued liabilities and other current liabilities   33,469       34,052  
    Reserve for veterinary invoices   51,635       63,238  
    Deferred revenue   251,640       235,329  
    Long-term debt – current portion   1,350       1,350  
    Total current liabilities   349,626       344,474  
    Long-term debt   127,537       127,580  
    Deferred tax liabilities   1,946       2,685  
    Other liabilities   4,476       4,487  
    Total liabilities   483,585       479,226  
    Stockholders’ equity:      
    Common stock: $0.00001 par value per share, 100,000,000 shares authorized; 43,516,631 and 42,488,445 shares issued and outstanding at December 31, 2024 and 42,887,052 and 41,858,866 shares issued and outstanding at December 31, 2023   —       —  
    Preferred stock: $0.00001 par value per share, 10,000,000 shares authorized; no shares issued and outstanding   —       —  
    Additional paid-in capital   568,302       536,108  
    Accumulated other comprehensive income (loss)   (2,612 )     403  
    Accumulated deficit   (225,888 )     (216,255 )
    Treasury stock, at cost: 1,028,186 shares at December 31, 2024 and December 31, 2023   (16,534 )     (16,534 )
    Total stockholders’ equity   323,268       303,722  
    Total liabilities and stockholders’ equity $ 806,853     $ 782,948  
                   
     
    Trupanion, Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
      (unaudited)        
    Operating activities              
    Net income (loss) $ 1,656     $ (2,163 )   $ (9,633 )   $ (44,693 )
    Adjustments to reconcile net loss to cash provided by (used in) operating activities:              
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Stock-based compensation expense   8,294       7,301       33,432       33,161  
    Goodwill impairment charges   5,299       —       5,299       —  
    Other, net   (1,294 )     2,481       (1,748 )     1,347  
    Changes in operating assets and liabilities:              
    Accounts and other receivables   15,303       10,153       (6,717 )     (35,440 )
    Prepaid expenses and other assets   817       854       3,215       (1,907 )
    Accounts payable, accrued liabilities, and other liabilities   2,433       5,476       2,084       1,644  
    Reserve for veterinary invoices   (4,841 )     1,788       (11,310 )     19,485  
    Deferred revenue   (7,890 )     (11,412 )     17,199       32,567  
    Net cash provided by (used in) operating activities   23,701       17,507       48,287       18,638  
    Investing activities              
    Purchases of investment securities   (26,118 )     (56,547 )     (133,493 )     (165,936 )
    Maturities and sales of investment securities   45,886       42,905       127,653       190,270  
    Purchases of property, equipment, and internal-use software   (1,858 )     (3,970 )     (9,716 )     (18,280 )
    Other   548       165       2,099       1,585  
    Net cash provided by (used in) investing activities   18,458       (17,447 )     (13,457 )     7,639  
    Financing activities              
    Proceeds from debt financing, net of financing fees   —       —       —       60,102  
    Repayments of debt financing   (338 )     (337 )     (1,350 )     (1,717 )
    Proceeds from exercise of stock options   36       1,374       752       2,655  
    Shares withheld to satisfy tax withholding   (1,142 )     (240 )     (2,519 )     (1,536 )
    Other   (230 )     (228 )     (840 )     (378 )
    Net cash provided by (used in) financing activities   (1,674 )     569       (3,957 )     59,126  
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash, net   (1,826 )     1,254       (1,807 )     424  
    Net change in cash, cash equivalents, and restricted cash   38,659       1,883       29,066       85,827  
    Cash, cash equivalents, and restricted cash at beginning of period   160,871       168,581       170,464       84,637  
    Cash, cash equivalents, and restricted cash at end of period $ 199,530     $ 170,464     $ 199,530     $ 170,464  
                                   
     
    The following tables set forth our key operating metrics.
                                   
      Year Ended
    December 31,
                           
        2024       2023                          
    Total Business:                              
    Total pets enrolled (at period end)   1,677,570       1,714,473                          
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,041,212       991,426                          
    Monthly average revenue per pet $ 72.98     $ 65.26                          
    Average pet acquisition cost (PAC) $ 235     $ 228                          
    Average monthly retention   98.25 %     98.49 %                        
                                   
                                   
      Three Months Ended
      Dec. 31,
    2024
      Sep. 30,
    2024
      Jun. 30,
    2024
      Mar. 31,
    2024
      Dec. 31,
    2023
      Sep. 30,
    2023
      Jun. 30,
    2023
      Mar. 31,
    2023
    Total Business:                              
    Total pets enrolled (at period end)   1,677,570       1,688,903       1,699,643       1,708,017       1,714,473       1,712,177       1,679,659       1,616,865  
    Subscription Business:                              
    Total subscription pets enrolled (at period end)   1,041,212       1,032,042       1,020,934       1,006,168       991,426       969,322       943,958       906,369  
    Monthly average revenue per pet $ 76.02     $ 74.27     $ 71.72     $ 69.79     $ 67.07     $ 65.82     $ 64.41     $ 63.58  
    Average pet acquisition cost (PAC) $ 261     $ 243     $ 231     $ 207     $ 217     $ 212     $ 236     $ 247  
    Average monthly retention   98.25 %     98.29 %     98.34 %     98.41 %     98.49 %     98.55 %     98.61 %     98.65 %
                                                                   
     
    The following table reflects the reconciliation of cash provided by operating activities to free cash flow (in thousands):
                   
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 23,701     $ 17,507     $ 48,287     $ 18,638  
    Purchases of property, equipment, and internal-use software   (1,858 )     (3,970 )     (9,716 )     (18,280 )
    Free cash flow $ 21,843     $ 13,537     $ 38,571     $ 358  
                                   
     
    The following table reflects the reconciliation between GAAP and non-GAAP measures (in thousands except percentages):
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Veterinary invoice expense   $ 245,663     $ 217,739     $ 949,148     $ 831,055  
    Less:                
    Stock-based compensation expense(1)     (800 )     (885 )     (3,335 )     (3,450 )
    Other business cost of paying veterinary invoices(4)     (85,378 )     (77,572 )     (324,720 )     (287,858 )
    Subscription cost of paying veterinary invoices (non-GAAP)   $ 159,485     $ 139,282     $ 621,093     $ 539,747  
    % of subscription revenue     70.0 %     72.7 %     72.5 %     75.7 %
                     
    Other cost of revenue   $ 38,721     $ 38,054     $ 157,738     $ 146,534  
    Less:                
    Stock-based compensation expense(1)     (476 )     (386 )     (1,955 )     (1,544 )
    Other business variable expenses(4)     (17,336 )     (19,301 )     (75,050 )     (75,756 )
    Subscription variable expenses (non-GAAP)   $ 20,909     $ 18,367     $ 80,733     $ 69,234  
    % of subscription revenue     9.2 %     9.6 %     9.4 %     9.7 %
                     
    Technology and development expense   $ 8,172     $ 5,969     $ 31,255     $ 21,403  
    General and administrative expense     16,828       13,390       63,731       60,207  
    Less:                
    Stock-based compensation expense(1)     (5,277 )     (3,797 )     (19,742 )     (19,869 )
    Non-recurring transaction or restructuring expenses(2)     —       —       —       (4,175 )
    Development expenses(3)     (1,322 )     (1,683 )     (5,624 )     (5,100 )
    Fixed expenses (non-GAAP)   $ 18,401     $ 13,879     $ 69,620     $ 52,466  
    % of total revenue     5.5 %     4.7 %     5.4 %     4.7 %
                     
    New pet acquisition expense   $ 18,354     $ 17,189     $ 71,379     $ 77,372  
    Less:                
    Stock-based compensation expense(1)     (1,482 )     (1,567 )     (6,908 )     (7,000 )
    Other business pet acquisition expense(4)     (8 )     (77 )     (39 )     (200 )
    Subscription acquisition cost (non-GAAP)   $ 16,864     $ 15,545     $ 64,432     $ 70,172  
    % of subscription revenue     7.4 %     8.1 %     7.5 %     9.8 %
                     
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation according to GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024, respectively.
    (2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers.
    (3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
    (4) Excludes the portion of stock-based compensation expense attributable to the other business segment.
     
     
    The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Operating income (loss) $ 348     $ 408     $ (9,514 )   $ (40,659 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,872       15,622       64,471       70,372  
    Stock-based compensation expense(1)   8,035       6,636       31,940       31,864  
    Development expenses(3)   1,322       1,683       5,624       5,100  
    Depreciation and amortization   3,924       3,029       16,466       12,474  
    Goodwill impairment charges   5,299       —       5,299       —  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       4,175  
    Gain (loss) from investment in joint venture   2       (79 )     (182 )     (219 )
    Total adjusted operating income (non-GAAP) $ 35,798     $ 27,457     $ 114,468     $ 83,545  
                   
    Subscription Business:              
    Subscription operating income (loss) $ 2,995     $ 1,300     $ (1,118 )   $ (35,994 )
    Non-GAAP expense adjustments              
    Acquisition cost   16,864       15,545       64,432       70,172  
    Stock-based compensation expense(1)   6,263       5,006       24,985       24,488  
    Development expenses(3)   893       1,090       3,745       3,281  
    Depreciation and amortization   2,650       1,961       10,970       8,021  
    Goodwill impairment charges   5,299       —       5,299       —  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       218  
    Subscription adjusted operating income (non-GAAP) $ 34,964     $ 24,902     $ 108,313     $ 70,186  
                   
    Other Business:      
    Other business operating income (loss) $ (2,649 )   $ (813 )   $ (8,214 )   $ (4,446 )
    Non-GAAP expense adjustments              
    Acquisition cost   8       77       39       200  
    Stock-based compensation expense(1)   1,772       1,630       6,955       7,376  
    Development expenses(3)   429       593       1,879       1,819  
    Depreciation and amortization   1,274       1,068       5,496       4,453  
    Non-recurring transaction or restructuring expenses(2)   —       —       —       3,957  
    Other business adjusted operating income (non-GAAP) $ 834     $ 2,555     $ 6,155     $ 13,359  
                   
    (1) Trupanion employees may elect to take restricted stock units in lieu of cash payment for their bonuses. We account for such expense as stock-based compensation in accordance with GAAP, but we do not include it in any non-GAAP adjustments. Stock-based compensation associated with bonuses was approximately $0.3 million and $1.5 million for the three and twelve months ended December 31, 2024, respectively.
    (2) Consists of business acquisition transaction expenses, severance and legal costs due to certain executive departures, and a $3.8 million non-recurring settlement of accounts receivable in the first quarter of 2023 related to uncollected premiums in connection with the transition of underwriting a third-party business to other insurers.
    (3) Consists of costs related to product exploration and development that are pre-revenue and historically have been insignificant.
     
     
    The following table reflects the reconciliation of GAAP measures to non-GAAP measures (in thousands, except percentages):
      Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Subscription revenue $ 227,783     $ 191,537     $ 856,521     $ 712,906  
    Subscription cost of paying veterinary invoices   159,485       139,281       621,093       539,746  
    Subscription variable expenses   20,909       18,367       80,733       69,234  
    Subscription fixed expenses*   12,425       8,987       46,382       33,740  
    Subscription adjusted operating income (non-GAAP) $ 34,964     $ 24,902     $ 108,313     $ 70,186  
    Other business revenue   109,524       104,320       429,163       395,699  
    Other business cost of paying veterinary invoices   85,378       77,572       324,720       287,858  
    Other business variable expenses   17,336       19,301       75,050       75,756  
    Other business fixed expenses*   5,976       4,892       23,238       18,726  
    Other business adjusted operating income (non-GAAP) $ 834     $ 2,555     $ 6,155     $ 13,359  
    Revenue   337,307       295,857       1,285,684       1,108,605  
    Cost of paying veterinary invoices   244,863       216,854       945,813       827,605  
    Variable expenses   38,245       37,668       155,783       144,990  
    Fixed expenses*   18,401       13,879       69,620       52,466  
    Total business adjusted operating income (non-GAAP) $ 35,798     $ 27,457     $ 114,468     $ 83,545  
                   
    As a percentage of revenue: Three Months Ended December 31,   Year Ended December 31,
        2024       2023       2024       2023  
    Subscription revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Subscription cost of paying veterinary invoices   70.0 %     72.7 %     72.5 %     75.7 %
    Subscription variable expenses   9.2 %     9.6 %     9.4 %     9.7 %
    Subscription fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Subscription adjusted operating income (non-GAAP)   15.3 %     13.0 %     12.6 %     9.8 %
                   
    Other business revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Other business cost of paying veterinary invoices   78.0 %     74.4 %     75.7 %     72.7 %
    Other business variable expenses   15.8 %     18.5 %     17.5 %     19.1 %
    Other business fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Other business adjusted operating income (non-GAAP)   0.8 %     2.4 %     1.4 %     3.4 %
                   
    Revenue   100.0 %     100.0 %     100.0 %     100.0 %
    Cost of paying veterinary invoices   72.6 %     73.3 %     73.6 %     74.7 %
    Variable expenses   11.3 %     12.7 %     12.1 %     13.1 %
    Fixed expenses*   5.5 %     4.7 %     5.4 %     4.7 %
    Total business adjusted operating income (non-GAAP)   10.6 %     9.3 %     8.9 %     7.5 %
                   
    *Fixed expenses represent shared services that support both our subscription and other business segments and, as such, are generally allocated to each segment pro-rata based on revenues.
     

    Adjusted operating income is a non-GAAP financial measure that adjusts operating income (loss) to remove the effect of acquisition cost, development expenses, non-recurring transaction or restructuring expenses, and gain (loss) from investment in joint venture. Non-cash items, such as goodwill impairment charges, stock-based compensation expense and depreciation and amortization, are also excluded. Acquisition cost, development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization are expected to remain recurring expenses for the foreseeable future, but are excluded from this metric to measure scale in other areas of the business. Management believes acquisition costs primarily represent the cost to acquire new subscribers and are driven by the amount of growth we choose to pursue based primarily on the amount of our adjusted operating income period over period. Accordingly, this measure is not indicative of our core operating income performance. We also exclude development expenses, gain (loss) from investment in joint venture, stock-based compensation expense, and depreciation and amortization because some investors may not view those items as reflective of our core operating income performance.

    Management uses adjusted operating income and the margin on adjusted operating income to understand the effects of scale in its non-acquisition cost and development expenses and to plan future advertising expenditures, which are designed to acquire new pets. Management uses this measure as a principal way of understanding the operating performance of its business exclusive of acquisition cost and new product exploration and development initiatives. Management believes disclosure of this metric provides investors with the same data that the Company employs in assessing its overall operations and that disclosure of this measure may provide useful information regarding the efficiency of our utilization of revenues, return on advertising dollars in the form of new subscribers and future use of available cash to support the continued growth of our business.

     
    The following tables reflect the reconciliation of adjusted EBITDA to net income (loss) (in thousands):
                                   
      Year Ended December 31,                        
        2024       2023                          
    Net loss $ (9,633 )   $ (44,693 )                        
    Excluding:                              
    Stock-based compensation expense   31,942       31,864                          
    Depreciation and amortization expense   16,466       12,474                          
    Interest income   (12,411 )     (9,011 )                        
    Interest expense   14,498       12,077                          
    Income tax benefit   (5 )     (342 )                        
    Goodwill impairment charges   5,299       —                          
    Non-recurring transaction or restructuring expenses   —       4,175                          
    Gain from equity method investment   (33 )     (110 )                        
    Adjusted EBITDA $ 46,123     $ 6,434                          
                                   
      Three Months Ended
      Dec. 31,
    2024
      Sep. 30,
    2024
      Jun. 30,
    2024
      Mar. 31,
    2024
      Dec. 31,
    2023
      Sep. 30,
    2023
      Jun. 30,
    2023
      Mar. 31,
    2023
    Net income (loss) $ 1,656     $ 1,425     $ (5,862 )   $ (6,852 )   $ (2,163 )   $ (4,036 )   $ (13,714 )   $ (24,780 )
    Excluding:                              
    Stock-based compensation expense   8,036       8,127       8,381       7,398       6,636       6,585       6,503       12,140  
    Depreciation and amortization expense   3,924       4,381       4,376       3,785       3,029       2,990       3,253       3,202  
    Interest income   (2,999 )     (3,232 )     (3,135 )     (3,045 )     (2,842 )     (2,389 )     (2,051 )     (1,729 )
    Interest expense   3,427       3,820       3,655       3,596       3,697       3,053       2,940       2,387  
    Income tax expense (benefit)   38       39       (44 )     (38 )     130       (43 )     (238 )     (191 )
    Goodwill impairment charges   5,299       —       —       —       —       —       —       —  
    Non-recurring transaction or restructuring expenses   —       —       —       —       —       8       65       4,102  
    Gain from equity method investment   —       (33 )     —       —       —       (110 )     —       —  
    Adjusted EBITDA $ 19,381     $ 14,527     $ 7,371     $ 4,844     $ 8,487     $ 6,058     $ (3,242 )   $ (4,869 )
     

    Contacts:

    Investors:
    Laura Bainbridge, Senior Vice President, Corporate Communications
    Gil Melchior, Director, Investor Relations
    Investor.Relations@trupanion.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1313fc50-df34-432e-8f6b-7dd236de3476

    PDF available: http://ml.globenewswire.com/Resource/Download/361c6270-7516-4b4f-a8b7-51c217d753c3

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Remitly Reports Fourth Quarter and Full Year 2024 Results Above Outlook

    Source: GlobeNewswire (MIL-OSI)

    Fourth quarter active customers up 32% and revenue up 33% year over year
    Fourth quarter net loss was $5.7 million and Adjusted EBITDA was $43.7 million

    SEATTLE, Feb. 19, 2025 (GLOBE NEWSWIRE) — Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of digital financial services that transcend borders, reported results for the fourth quarter and full year ended December 31, 2024.

    “We delivered an exceptional fourth quarter and full year, exceeding expectations, as our product strength and customer loyalty drove durable growth and improving profitability,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly. “Our product experience continues to resonate with customers as we deliver simplicity, convenience, and trust. As we look ahead to 2025 and beyond, I am excited about the growth opportunities and innovation that will enable us to deliver on our vision.”

    Fourth Quarter 2024 Highlights and Key Operating Data
    (All comparisons relative to the fourth quarter of 2023)

    • Active customers increased to 7.8 million, from 5.9 million, up 32%.
    • Send volume increased to $15.4 billion, from $11.1 billion, up 39%.
    • Revenue totaled $351.9 million, compared to $264.8 million, up 33%.
    • Net loss was $5.7 million, compared to a net loss of $35.0 million.
    • Adjusted EBITDA was $43.7 million, compared to $8.2 million, up 434%.

    Full Year 2024 Highlights and Key Operating Data:
    (All comparisons relative to the full year 2023)

    • Send volume increased to $54.6 billion, from $39.5 billion, up 38%.
    • Revenue totaled $1,264.0 million, compared to $944.3 million, up 34%.
    • Net loss was $37.0 million, compared to a net loss of $117.8 million.
    • Adjusted EBITDA was $134.8 million, compared to $44.5 million, up 203%.

    2025 Financial Outlook
    For fiscal year 2025, Remitly currently expects:

    • Total revenue in the range of $1.565 billion to $1.580 billion, representing a growth rate of 24% to 25% year over year.
    • GAAP net income to be positive for 2025 and for Adjusted EBITDA to be in the range of $180 million to $200 million.

    For the first quarter of 2025, Remitly currently expects:

    • Total revenue in the range of $345 million to $348 million, representing a growth rate of 28% to 29% year over year.
    • A GAAP net loss position for the first quarter of 2025 and for Adjusted EBITDA to be in the range of $36 million to $40 million.

    Reconciliation of GAAP to Non-GAAP Financial Measures
    A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes and stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results.

    Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings.

    Webcast Information
    Remitly will host a webcast at 5:00 p.m. Eastern time on Wednesday, February 19, 2025 to discuss its fourth quarter and full year 2024 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event.

    We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

    Non-GAAP Financial Measures
    Some of the financial information and data contained in this earnings release, such as Adjusted EBITDA and non-GAAP operating expenses, have not been prepared in accordance with United States generally accepted accounting principles (“GAAP”). We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. Remitly believes that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing Remitly’s financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. Remitly’s non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with Remitly’s financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP.

    We calculate Adjusted EBITDA as net loss adjusted by (i) interest (income) expense, net, (ii) provision for income taxes, (iii) noncash charges of depreciation and amortization, (iv) gains and losses from the remeasurement of foreign currency assets and liabilities into their functional currency, (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, (vi) noncash stock-based compensation expense, net, and (vii) certain acquisition, integration, restructuring, and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net, (ii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment, as well as (iii) certain acquisition, integration, restructuring, and other costs.

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future results of operations and financial position, including our fiscal year and first quarter 2025 financial outlook, including forecasted fiscal year and first quarter 2025 revenue, net income (loss), and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, our growth, our position and potential opportunities, and our objectives for future operations. The words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to develop new products and services in a timely manner; our ability to achieve or sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to attract and retain qualified employees; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal policy, foreign trade, or foreign investment), or regional and global conflicts or related government sanctions; our ability to maintain the security and availability of our solutions; our ability to maintain our money transmission licenses and other regulatory clearances; our ability to maintain and expand international operations; and our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions. 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, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our annual report on Form 10-K for the year ended December 31, 2024 to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2023 filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

    About Remitly
    Remitly is a trusted provider of digital financial services that transcend borders. With a global footprint spanning more than 170 countries, Remitly’s digitally native, cross-border payments app delights customers with a fast, reliable, and transparent money movement experience. Building on its strong foundation, Remitly is expanding its suite of products to further its vision and transform lives around the world.

    Contacts

    Media:
    Kendall Sadler
    kendall@remitly.com

    Investor Relations:
    Stephen Shulstein
    stephens@remitly.com

    REMITLY GLOBAL, INC.
    Condensed Consolidated Statements of Operations
    (unaudited)
     
      Three Months Ended December 31,   Twelve Months Ended December 31,
    (in thousands, except share and per share data) 2024   2023   2024   2023
    Revenue $ 351,895     $ 264,758     $ 1,263,963     $ 944,285  
    Costs and expenses              
    Transaction expenses(1)   118,389       89,118       431,604       329,113  
    Customer support and operations(1)   22,008       19,917       83,918       82,521  
    Marketing(1)   83,937       75,343       303,799       234,417  
    Technology and development(1)   70,611       59,240       269,817       219,939  
    General and administrative(1)   54,875       48,657       195,857       179,372  
    Depreciation and amortization   5,814       3,484       18,054       13,118  
    Total costs and expenses   355,634       295,759       1,303,049       1,058,480  
    Loss from operations   (3,739 )     (31,001 )     (39,086 )     (114,195 )
    Interest income   1,844       2,247       8,077       7,447  
    Interest expense   (967 )     (786 )     (3,241 )     (2,352 )
    Other income (expense), net   (2,273 )     (64 )     3,999       (2,838 )
    Loss before provision for income taxes   (5,135 )     (29,604 )     (30,251 )     (111,938 )
    Provision for income taxes   589       5,417       6,727       5,902  
    Net loss $ (5,724 )   $ (35,021 )   $ (36,978 )   $ (117,840 )
    Net loss per share attributable to common stockholders:              
    Basic and diluted $ (0.03 )   $ (0.19 )   $ (0.19 )   $ (0.65 )
    Weighted-average shares used in computing net loss per share attributable to common stockholders:              
    Basic and diluted   199,049,777       186,343,078       194,646,436       180,818,399  
    ___________________________
    (1) Exclusive of depreciation and amortization, shown separately.
                                   
    REMITLY GLOBAL, INC.
    Condensed Consolidated Balance Sheets
    (unaudited)
     
      December 31,   December 31,
    (in thousands) 2024   2023
    Assets      
    Current assets      
    Cash and cash equivalents $ 368,097     $ 323,710  
    Disbursement prefunding   288,934       195,848  
    Customer funds receivable, net   193,965       379,417  
    Prepaid expenses and other current assets   46,518       33,143  
    Total current assets   897,514       932,118  
    Property and equipment, net   31,566       16,010  
    Operating lease right-of-use assets   13,002       9,525  
    Goodwill   54,940       54,940  
    Intangible assets, net   10,463       16,642  
    Other noncurrent assets, net   5,386       7,071  
    Total assets $ 1,012,871     $ 1,036,306  
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable $ 16,159     $ 35,051  
    Customer liabilities   188,984       177,473  
    Short-term debt   2,468       2,481  
    Accrued expenses and other current liabilities   116,652       145,802  
    Operating lease liabilities   4,745       6,032  
    Total current liabilities   329,008       366,839  
    Operating lease liabilities, noncurrent   9,073       4,477  
    Long-term debt   —       130,000  
    Other noncurrent liabilities   9,319       5,653  
    Total liabilities   347,400       506,969  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock   20       19  
    Additional paid-in capital   1,195,390       1,020,286  
    Accumulated other comprehensive (loss) income   (1,658 )     335  
    Accumulated deficit   (528,281 )     (491,303 )
    Total stockholders’ equity   665,471       529,337  
    Total liabilities and stockholders’ equity $ 1,012,871     $ 1,036,306  
                   
    REMITLY GLOBAL, INC.
    Condensed Consolidated Statements of Cash Flows
    (unaudited)
     
      Year Ended December 31,
    (in thousands) 2024   2023
    Cash flows from operating activities      
    Net loss $ (36,978 )   $ (117,840 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
    Depreciation and amortization   18,054       13,118  
    Stock-based compensation expense, net   152,137       136,967  
    Donation of common stock   2,587       4,600  
    Other   454       713  
    Changes in operating assets and liabilities:      
    Disbursement prefunding   (93,086 )     (31,778 )
    Customer funds receivable   186,357       (183,422 )
    Prepaid expenses and other assets   (12,224 )     (13,035 )
    Operating lease right-of-use assets   5,981       5,186  
    Accounts payable   (20,823 )     27,559  
    Customer liabilities   12,666       61,718  
    Accrued expenses and other liabilities   (14,499 )     47,357  
    Operating lease liabilities   (6,141 )     (4,733 )
    Net cash provided by (used in) operating activities   194,485       (53,590 )
    Cash flows from investing activities      
    Purchases of property and equipment   (5,998 )     (2,857 )
    Capitalized internal-use software costs   (11,704 )     (6,247 )
    Cash paid for acquisition, net of acquired cash, cash equivalents, and restricted cash   —       (40,933 )
    Net cash used in investing activities   (17,702 )     (50,037 )
    Cash flows from financing activities      
    Proceeds from exercise of stock options   8,667       14,288  
    Proceeds from issuance of common stock in connection with ESPP   9,382       6,132  
    Proceeds from revolving credit facility borrowings   1,453,000       764,000  
    Repayments of revolving credit facility borrowings   (1,583,000 )     (634,000 )
    Taxes paid related to net share settlement of equity awards   (5,228 )     (6,702 )
    Cash paid for settlement of amounts previously held back for acquisition consideration   (10,261 )     —  
    Repayment of assumed indebtedness   —       (17,068 )
    Net cash (used in) provided by financing activities   (127,440 )     126,650  
    Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash   (4,555 )     1,272  
    Net increase in cash, cash equivalents, and restricted cash   44,788       24,295  
    Cash, cash equivalents, and restricted cash at beginning of period   325,029       300,734  
    Cash, cash equivalents, and restricted cash at end of period $ 369,817     $ 325,029  
    Reconciliation of cash, cash equivalents, and restricted cash      
    Cash and cash equivalents $ 368,097     $ 323,710  
    Restricted cash included in prepaid expenses and other current assets   658       774  
    Restricted cash included in other noncurrent assets, net   1,062       545  
    Total cash, cash equivalents, and restricted cash $ 369,817     $ 325,029  
                   
    REMITLY GLOBAL, INC.
    Reconciliation of GAAP to Non-GAAP Financial Measures
    (unaudited)
     
    Reconciliation of net loss to Adjusted EBITDA:
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
    (in thousands) 2024   2023   2024   2023
    Net loss $ (5,724 )   $ (35,021 )   $ (36,978 )   $ (117,840 )
    Add:              
    Interest income, net   (877 )     (1,461 )     (4,836 )     (5,095 )
    Provision for income taxes   589       5,417       6,727       5,902  
    Depreciation and amortization   5,814       3,484       18,054       13,118  
    Foreign exchange (gain) loss   2,273       (8 )     (4,394 )     2,603  
    Donation of common stock   —       —       2,587       4,600  
    Stock-based compensation expense, net   41,614       35,960       152,137       136,967  
    Acquisition, integration, restructuring, and other costs(1)   —       (193 )     1,468       4,197  
    Adjusted EBITDA $ 43,689     $ 8,178     $ 134,765     $ 44,452  
    ___________________________
    (1) Acquisition, integration, restructuring, and other costs for the twelve months ended December 31, 2024 consisted primarily of $0.8 million in restructuring charges incurred, $0.5 million of non-recurring legal charges, and $0.2 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire (O.S.G.) Research and Development Ltd. (“Rewire”). Acquisition, integration, restructuring, and other costs for the three months ended December 31, 2023 consisted primarily of $(0.8) million related to the change in the fair value of the holdback liability and $0.6 million of expenses incurred in connection with the acquisition and integration of Rewire. Acquisition, integration, restructuring, and other costs for the twelve months ended December 31, 2023 consisted primarily of $1.7 million of expenses incurred in connection with the acquisition and integration of Rewire, $1.4 million in restructuring charges incurred, and $1.1 million related to the change in the fair value of the holdback liability associated with the acquisition of Rewire.
     
    Reconciliation of operating expenses to non-GAAP operating expenses:
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
    (in thousands) 2024   2023   2024   2023
    Customer support and operations $ 22,008   $ 19,917     $ 83,918   $ 82,521
    Excluding: Stock-based compensation expense, net   268     394       1,158     1,404
    Excluding: Acquisition, integration, restructuring, and other costs   —     —       758     739
    Non-GAAP customer support and operations $ 21,740   $ 19,523     $ 82,002   $ 80,378
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
      2024   2023   2024   2023
    Marketing $ 83,937   $ 75,343     $ 303,799   $ 234,417
    Excluding: Stock-based compensation expense, net   4,595     3,930       17,609     16,165
    Non-GAAP marketing $ 79,342   $ 71,413     $ 286,190   $ 218,252
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
      2024   2023   2024   2023
    Technology and development $ 70,611   $ 59,240     $ 269,817   $ 219,939
    Excluding: Stock-based compensation expense, net   22,527     19,920       84,381     74,967
    Excluding: Acquisition, integration, restructuring, and other costs   —     700       —     1,224
    Non-GAAP technology and development $ 48,084   $ 38,620     $ 185,436   $ 143,748
                   
      Three Months Ended December 31,   Twelve Months Ended December 31,
      2024   2023   2024   2023
    General and administrative $ 54,875   $ 48,657     $ 195,857   $ 179,372
    Excluding: Stock-based compensation expense, net   14,224     11,716       48,989     44,431
    Excluding: Donation of common stock   —     —       2,587     4,600
    Excluding: Acquisition, integration, restructuring, and other costs   —     (893 )     710     2,234
    Non-GAAP general and administrative $ 40,651   $ 37,834     $ 143,571   $ 128,107

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Enovix Announces Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the fourth quarter and full year 2024, which included the summary below from its President and CEO, Dr. Raj Talluri.

    Fellow Shareholders,

    In the fourth quarter of 2024, we achieved key milestones in manufacturing, technology, and sales, setting the stage for a breakout year in 2025. We are focused on launching our first smartphone battery and converting our IoT pipeline into contracted backlog. Customers across multiple industries are acknowledging the readiness of our manufacturing capabilities, which are coming online at the perfect time to meet strong demand for our high energy-density solutions and diversified supply chain.

    Other recent highlights include:

    • Record Revenue: Fourth quarter revenues were a record $9.7 million, near the high end of our guidance. Full year 2024 revenues were also a record of $23.1 million, up 202%, from $7.6 million in 2023.
    • Smartphone Batteries: We shipped early engineering samples to our lead smartphone OEM, with results confirming that critical safety tests are passing. Additionally, cell dimensions were received in continuation of our agreement. We remain on track for commercial smartphone battery launches in 2025, pending successful completion of customer qualification. Furthermore, a new OEM customer submitted first samples purchase order, expanding our active engagements to 7 of the top 8 smartphone OEMs.
    • XR Batteries: Secured a landmark prepaid purchase order from a global technology leader in Artificial Intelligence (AI) and immersive technologies, reserving dedicated production capacity for next-generation smart eyewear. First samples, featuring our custom cells from Fab2 integrated into packs in our Korea facility, were delivered to the customer earlier this month.
    • Manufacturing Readiness: Fab2 in Malaysia completed Site Acceptance Testing (SAT) for the High-Volume Manufacturing (HVM) line, a key milestone in our journey to scale production. Additionally, we were honored to host several customers at our factory in Malaysia, conducting detailed line tours. And multiple OEMs initiated formal factory audits to support their qualification processes.
    • Products: We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. And the first EX-2M samples from Fab2 were shipped to customers on schedule.
    • Capitalization: 2024 year-end cash and cash equivalents of $272.9 million and continued operating expense discipline provides optionality for funding additional HVM lines.

    2025 is off to a fast start, fueled by accelerating AI innovation and a shifting landscape that is driving OEMs to diversify their supply chains. As a leader in high-energy-density battery technology with manufacturing facilities in Korea and Malaysia, Enovix is well positioned to capitalize on these industry trends.

    A key strategic decision in 2024 was to invest in the emerging AI-enabled smart eyewear market by developing a battery cell tailored for this market. We believe this investment is now paying off, as our product is expected to launch as this market is gaining momentum. New estimates from IDC project the smart eyewear market will reach multiple tens of millions of units by 2028, driven by recent hardware and software ecosystem advancements, the growing adoption of AI applications, and the expanding use cases across consumer, enterprise and defense markets. A majority of America’s largest tech companies, along with several top-tier Asia-based OEMs, have announced smart eyewear products. However, one major bottleneck remains – no product today delivers resiliency to all-day usage with ever-increasing sensor, communications (WiFi, Bluetooth, cellular, and satellite), and computing demands. This presents a prime opportunity for Enovix. With our high-energy-density battery already developed, HVM ramping up, and many of the market’s key players based in our backyard of Silicon Valley, we believe we are well-positioned to lead in this space.

    In smartphones, the strong tailwinds we identified last quarter continue in 2025. OEMs are increasingly requesting batteries with capacities near 7,000 milliamp-hours to support the growing power demands of next-generation AI applications. Additionally, with smartphone penetration already at saturation levels, market leaders are intensifying their focus on product differentiation – particularly in regions outside the US, where competition is fierce. We believe that our EX-2M and upcoming EX-3M battery solutions align with evolving demands, reinforcing our role as a strategic partner to leading OEMs.

    A new industry trend that has emerged subsequent to our last shareholder letter is supply chain-driven demand, particularly in the defense sector. Soon after the US elections in November, we observed an increase in inbound interest from drone manufacturers and defense suppliers seeking battery solutions that comply with allied country supply chain requirements. As a reminder, a significant portion of our 2024 revenue came from sales of conventional graphite battery products to defense customers. Earlier this month, we secured a purchase order for samples from a new defense customer with over $1 billion in annual sales to the US military, focused on autonomous AI systems. While these developments are still evolving, we are optimistic about the potential upside.

    Business Update

    Manufacturing. We successfully completed our key fourth-quarter objectives on schedule, including SAT for the HVM line and shipping the first EX-2M samples. We also further improved yields across both the Agility and HVM lines, with incremental targets in place throughout the year that we believe will ensure readiness for smartphone mass production in the fourth quarter of 2025. Customer audits are now underway at our Malaysia facility. While preparing Fab2 for mass production remains our primary manufacturing focus in 2025, we are also prioritizing efforts to accelerate custom cell development timelines. Our initial success in the emerging smart eyewear market was made possible because we dedicated resources to making a new variant of EX-1M designed to fit within the confines of the glasses frames. As we scale, our ability to swiftly develop tailored solutions with precision manufacturing and latest chemistries will play a critical role in our success. Additionally, we continue to act in a disciplined manner to select the right customer opportunities to pursue for long-term growth.

    Commercialization. Our business team remains focused on smartphone mass production as the primary commercialization goal for 2025. In October of 2024, we took a major step toward this objective by executing a strategic partnership that outlined key milestones leading up to our entry into the smartphone market by late 2025. This agreement was followed by a purchase order in the fourth quarter of 2024 tied to one of those milestones, and in the first quarter of 2025 we received battery dimensions for a planned 2025 smartphone launch. Additionally, we secured a first purchase order for samples from a new global smartphone manufacturer, expanding our customer engagements to 7 of the top 8 smartphone OEMs.

    In addition to being focused on smartphone business, we are also being highly selective with IoT opportunities, prioritizing segments where our technology and global supply chain have a strong competitive advantage. Among these, smart eyewear emerged as a natural fit, and we are now in the process of developing custom cells for marquee customers. This quarter, we shipped our first samples to customers using our Korea-based packing capability that is now fully integrated with our silicon cell production out of Malaysia. Our first commercial shipments are scheduled to commence mid-year, and we are actively securing additional IoT purchase orders.

    In the EV space, we continue advancing development agreements with two of the world’s largest automotive OEMs. Consistent with our capital-efficient strategy, we remain focused on targeted collaborations that allow us to scale in this vertical while optimizing investment.

    Across these markets, our disciplined approach to commercialization ensures that we are not only securing near-term revenue opportunities but also building a foundation for long-term leadership in high-energy-density battery solutions.

    Products:

    Our battery technology continues to advance across multiple generations, with significant progress in safety and performance validation, customer sampling, and next-generation design. We successfully completed safety testing of EX-1M and performance results indicate that we are on track to meet targets for energy density, cycle life, and fast charging. For EX-2M, we delivered early engineering samples to OEMs across both smartphone and IoT markets and received positive feedback. Additionally, EX-2M has outperformed traditional graphite-based cells in select safety tests such as crush and impact tests. We are now refining our electrochemistry to further enhance performance metrics. Looking ahead, we have officially kicked off the design phase for EX-3M. As we continue refining key performance specifications, we are incorporating feedback from lead OEMs to ensure alignment with their evolving requirements. Our goal is to finalize the EX-3M design in early 2025, paving the way for our next-generation battery technology.

    These advancements reflect our commitment to delivering high-performance, high-energy-density battery solutions across multiple product categories, reinforcing our position as a leader in battery innovation.

    Financials: Revenue was $9.7 million in the fourth quarter of 2024, near the high end of our guidance range and up more than 30 percent year over year. A majority of revenues were from our conventional battery capacity in South Korea which is seeing a positive demand environment from defense customers and benefiting from increased collaboration with our US engineers. Our GAAP cost of revenue was $8.7 million in the fourth quarter of 2024 leading to the Company’s first ever positive gross margin which totaled $1.1 million or 11% of sales.

    Our GAAP operating expenses were $35.6 million in the fourth quarter of 2024 compared to $48.6 million in the third quarter, which reflects some of the expense reductions related to our shift of various functions to lower cost regions such as Malaysia and India. Our non-GAAP operating expenses were $24.3 million in the fourth quarter of 2024, down from $27.2 million in the previous quarter.

    Our GAAP net loss attributable to Enovix was $37.5 million in the fourth quarter of 2024, compared to $22.5 million in the previous quarter. As a reminder our GAAP net loss is impacted quarterly by changes in fair value of common stock warrants, which resulted in a $5.1 million expense in the fourth quarter compared to a $29.9 million benefit in the third quarter of 2024.  

    Adjusted EBITDA in the fourth quarter of 2024 was a loss of $11.7 million compared to an adjusted EBITDA loss of $21.6 million in the previous quarter. The sequential improvement was driven by positive gross margin, lower operating expenses and a $1.0 million increase in depreciation and amortization.

    Earnings per share loss in the fourth quarter of 2024 was $0.20 on a GAAP basis and $0.11 on a non-GAAP basis compared to third quarter earnings per share loss of $0.30 on a GAAP basis and $0.17 on a non-GAAP basis.

    We exited 2024 with $272.9 million of cash and cash equivalents following the receipts of approximately $107 million of net proceeds from an equity offering in the fourth quarter which was partially offset by $16.0 million used in operating activities and capital expenditures of $16.4 million during the quarter.

    A full reconciliation of our GAAP to non-GAAP results is available later in this report.

    Outlook

    For the first quarter of 2025, we expect revenue between $3.5 million and $5.5 million, a GAAP EPS loss of $0.23 to $0.29, an adjusted EBITDA loss of $21.0 million to $27.0 million, and a non-GAAP EPS loss of $0.15 to $0.21.

    Summary

    The top milestones we identified at the beginning of 2024 were achieving SAT for agility and our high-volume manufacturing lines in Malaysia and delivering samples of our leading smartphone batteries, EX-1M and EX-2M, to customers. Not only did we hit these top milestones, we also advanced relationships with market leaders in smartphones, AR/VR, and automotive industries. We believe that these relationships, supported by purchase orders and commercial launch schedules, provide a clear path for us to commence mass production in 2025.

    Conference Call Information

    Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, February 19, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q4-2024.open-exchange.net/registration. This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

    About Enovix

    Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to the vehicle you drive, needs a better battery. Enovix partners with OEMs worldwide to usher in a new era of user experiences. Our innovative, materials-agnostic approach to building a higher performing battery without compromising safety keeps us flexible and on the cutting-edge of battery technology innovation.

    Enovix is headquartered in Silicon Valley with facilities in India, Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

    Non-GAAP Financial Measures

    Non-GAAP operating expenses, EBITDA, Adjusted EBITDA, non-GAAP net loss per share, and other non-GAAP measures are intended as supplemental financial measures of our performance that provide an additional tool for investors to use in evaluating ongoing operating results, trends, and in comparing our financial measures with those of comparable companies.

    However, you should be aware that other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

    While Enovix provides first quarter 2025 guidance for adjusted EBITDA loss and non-GAAP EPS loss, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures. Such qualitative reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock-based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

    Forward-Looking Statements

    This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or our future financial or operating performance and can be identified by words such as anticipate, believe, continue, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, setting the stage, should, would and similar expressions that convey uncertainty about future events or outcomes. Forward-looking statements in this letter to shareholders include, without limitation, out expected performance and results for the first quarter of 2025; that 2025 will be a breakout year; the timing for completion of customer qualification for and the launch of our first smartphone battery in 2025; our expectations regarding our ability to commence mass production in 2025 and full utilization of the first HVM line in 2026; our expectations regarding, and our ability to respond to, market and customer demand; our expectations regarding the level of customers’ interest in our high energy-density solutions and diversified supply chain, the demand for more energy dense batteries and the suitability of our products to address this demand, and the impact of artificial intelligence (“AI”) features on the foregoing; our ability to develop and deliver a battery cell tailored to the smart eyewear market, including our ability to deliver a battery that delivers a full day of usage on a single charge, and the anticipated benefits of our investments in these products and market; our anticipated commercial shipments of batteries for smart eyewear and other IoT products by mid-year 2025; our ability to convert our IoT pipeline into contracted backlog; projected improvements in our manufacturing and commercialization and R&D activities at Fab2, including the ability of the sales team to support the path to profitability by attracting demand across high-growth markets; our achievement of the milestones under our strategic partnership with a leading smartphone OEM; expectations relating to broader agreements with automative OEMs; our ability to successfully complete safety testing and customer qualification and our ability to and the timing of our entry into the smartphone market in 2025 with high-volume production from our Fab2 facility; our ability to meet our spec targets for energy density, cycle life and fast charging for our EX-1M cells; our ability to develop and commercialize customer and product-specific variants of our products and other tailored solutions for our customers; our expectations regarding EX-1M and EX-2M readiness and production, and predicted EX-3M battery solution production; our ability to meet goals for yield, throughput, energy density, cycle life and fast charging; the readiness of our production and manufacturing capabilities; our expectations with respect to the development and innovation of EX-2M and EX-3M, including our ability to finalize the EX-3M design in Q1 2025; our expectations regarding Fab2 in and its capacity to support multiple customer qualifications; our observations and expectations around supply chain-driven demand including in the defense sector, and interest from specific customer segments including drone manufacturers and military suppliers; the anticipated contributions of our R&D teams to support product innovation; our revenue funnel; our efforts in the portable electronics and EV markets, including the IoT, smartphone, smart eyewear and virtual reality categories; expectations regarding the reservation and use of production capacity and our ability to satisfy production expectations relating to next-generation smart eyewear; our ability to meet milestones and deliver on our objectives and expectations; our ability to fund additional HVM lines; anticipated increases in demand and interest in our products from manufacturers and suppliers seeking battery solutions that comply with allied country supply chain requirements; the implementation and expected success of our business model and growth strategy, including our focus on the addressable market categories in which we believe an improved battery drives a high value to the product and premium pricing for our solutions; our ability to manage our expenses and realize our annual cost savings goals; our ability to capitalize on industry trends, including trends relating to accelerating AI innovation; our ability to manage and achieve the benefits of our restructuring efforts, including continued operating expense discipline to facilitate funding for additional HVM lines at Fab2; and forecasts of our financial and performance metrics.

    Actual results could differ materially from these forward-looking statements as a result of certain risks and uncertainties, including, without limitation, our ability to improve energy density, cycle life, fast charging, capacity roll off and gassing metrics among our products; our reliance on new and complex manufacturing processes for our operations; our ability to establish sufficient manufacturing operations and improve and optimize manufacturing processes to meet demand, source materials and establish supply relationships, and secure adequate funds to execute on our operational and strategic goals; our reliance on a manufacturing agreement with a Malaysia-based company for many of the facilities, procurement, personnel and financing needs of our operations; our operation in international markets, including our exposure to operational, financial and regulatory risks, as well as risks relating to geopolitical tensions and conflicts, including changes in trade policies and regulations; that we may be required to pay costs for components and raw materials that are more expensive than anticipated, including as a result of trade barriers, trade sanctions, export restrictions, tariffs, embargoes or shortages and other general economic and political conditions, which could delay the introduction of our products and negatively impact our business; our ability to adequately control the costs associated with our operations and the components necessary to build our lithium-ion battery cells; our lengthy sales cycles; the safety hazards associated with our batteries and the manufacturing process; a concentration of customers in the military market and our dependence on these customer accounts; certain unfavorable terms in our commercial agreements that may limit our ability to market our products; our ability to develop, market and sell our batteries, expectations relating to the performance of our batteries, and market acceptance of our products; our ability to accurately estimate the future supply and demand of our batteries, which could result in a variety of inefficiencies in our business; changes in consumer preferences or demands; changes in industry standards; the impact of technological development and competition; and global economic conditions, including tariffs, inflationary and supply chain pressures, and political, social, and economic instability, including as a result of armed conflict, war or threat of war, or trade and other international disputes that could disrupt supply or delivery of, or demand for, our products.

    For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    For media and investor inquiries, please contact:

    Enovix Corporation
    Robert Lahey
    Email: ir@enovix.com

     
    Enovix Corporation
    Condensed Consolidated Balance Sheets
    (Unaudited) (In Thousands, Except Share and per Share Amounts)
     
      December 29, 2024   December 31, 2023
    Assets      
    Current assets:      
    Cash and cash equivalents $ 272,869     $ 233,121  
    Short-term investments   —       73,694  
    Accounts receivable, net   4,566       909  
    Notes receivable, net   4       1,514  
    Inventory   7,664       8,737  
    Prepaid expenses and other current assets   9,903       5,202  
    Total current assets   295,006       323,177  
    Property and equipment, net   167,947       166,471  
    Customer relationship intangibles and other intangibles, net   36,394       42,168  
    Operating lease, right-of-use assets   13,479       15,290  
    Goodwill   12,217       12,098  
    Other assets, non-current   2,126       5,100  
    Total assets $ 527,169     $ 564,304  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 9,492     $ 21,251  
    Accrued expenses   19,843       13,976  
    Accrued compensation   8,228       10,731  
    Short-term debt   9,452       5,917  
    Deferred revenue   3,650       6,708  
    Other liabilities   3,036       2,435  
    Total current liabilities   53,701       61,018  
    Long-term debt, net   169,820       169,099  
    Warrant liability   28,380       42,900  
    Operating lease liabilities, non-current   13,293       15,594  
    Deferred revenue, non-current   3,774       3,774  
    Deferred tax liability   8,784       10,803  
    Other liabilities, non-current   14       13  
    Total liabilities   277,766       303,201  
    Commitments and Contingencies      
    Stockholders’ equity:      
    Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 190,559,335 and 167,392,315 as of December 29, 2024 and December 31, 2023, respectively   19       17  
    Preferred stock, $0.0001 par value; authorized shares of 10,000,000; no shares issued or outstanding as of December 29, 2024 and December 31, 2023, respectively   —       —  
    Additional paid-in-capital   1,067,951       857,037  
    Accumulated other comprehensive loss   (143 )     (62 )
    Accumulated deficit   (821,086 )     (598,845 )
    Total Enovix’s stockholders’ equity   246,741       258,147  
    Non-controlling interest   2,662       2,956  
    Total equity   249,403       261,103  
    Total liabilities and equity $ 527,169     $ 564,304  
     
    Enovix Corporation
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In Thousands, Except Share and per Share Amounts)
     
      Quarters Ended   Fiscal Years Ended
      December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Revenue $ 9,717     $ 7,381     $ 23,074     $ 7,644  
    Cost of revenue   8,665       19,769       25,119       63,061  
    Gross margin   1,052       (12,388 )     (2,045 )     (55,417 )
    Operating expenses:              
    Research and development   22,433       34,582       124,506       88,392  
    Selling, general and administrative   13,135       17,807       74,311       79,014  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost   —       —       41,807       3,021  
    Total operating expenses   35,568       52,389       240,624       174,838  
    Loss from operations   (34,516 )     (64,777 )     (242,669 )     (230,255 )
    Other income (expense):              
    Change in fair value of common stock warrants   (5,115 )     2,040       12,244       6,180  
    Interest income   2,587       4,128       12,332       14,070  
    Interest expense   (1,719 )     (1,629 )     (6,787 )     (4,456 )
    Other income (loss), net   2,463       (433 )     954       (304 )
    Total other income (loss), net   (1,784 )     4,106       18,743       15,490  
    Loss before income tax expense (benefit)   (36,300 )     (60,671 )     (223,926 )     (214,765 )
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Net loss   (37,452 )     (60,038 )     (222,534 )     (214,132 )
    Net gain (loss) attributable to non-controlling interests   13       (61 )     (293 )     (61 )
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
                   
    Net loss per share attributable to Enovix shareholders, basic $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    Weighted average number of common shares outstanding, basic   184,971,942       165,708,522       175,038,107       159,065,697  
    Net loss per share attributable to Enovix shareholders, diluted $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    Weighted average number of common shares outstanding, diluted   184,971,942       165,708,522       175,038,107       159,575,555  
     
    Enovix Corporation
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
    (In Thousands) Fiscal Years
        2024       2023  
    Cash flows used in operating activities:      
    Net loss $ (222,534 )   $ (214,132 )
    Adjustments to reconcile net loss to net cash used in operating activities      
    Depreciation, accretion and amortization   44,961       34,009  
    Stock-based compensation   58,837       69,452  
    Changes in fair value of common stock warrants   (12,244 )     (6,180 )
    Impairment and loss on disposals of long-lived assets   38,258       4,411  
    Others   448       703  
    Changes in operating assets and liabilities:      
    Accounts and notes receivables   (2,465 )     (370 )
    Inventory   1,073       4,509  
    Prepaid expenses and other assets   (2,211 )     (626 )
    Accounts payable   (7,970 )     6,096  
    Accrued expenses and compensation   3,016       1,977  
    Deferred revenue   (3,058 )     (3,860 )
    Deferred tax liability   (2,697 )     (813 )
    Other liabilities   (2,047 )     188  
    Net cash used in operating activities   (108,633 )     (104,636 )
    Cash flows from investing activities:      
    Purchase of property and equipment   (76,188 )     (61,795 )
    Routejade acquisition, net of cash and restricted cash acquired   —       (9,968 )
    Purchases of investments   (31,812 )     (138,343 )
    Maturities of investments   106,621       67,150  
    Net cash used in investing activities   (1,379 )     (142,956 )
    Cash flows from financing activities:      
    Proceeds from issuance of common stocks, net of issuance costs   107,192       —  
    Proceeds from issuance of Convertible Senior Notes and loans   4,572       172,500  
    Repayment of debt   (209 )     (69 )
    Payments of debt issuance costs   —       (5,917 )
    Purchase of Capped Calls   —       (17,250 )
    Payroll tax payments for shares withheld upon vesting of RSUs   (7,079 )     (3,931 )
    Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs   44,771       11,928  
    Proceeds from issuance of common stock under employee stock purchase plan   1,506       2,350  
    Repurchase of unvested restricted common stock   (4 )     (26 )
    Net cash provided by financing activities   150,749       159,585  
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   (1,169 )     154  
    Change in cash, cash equivalents, and restricted cash   39,568       (87,853 )
    Cash and cash equivalents and restricted cash, beginning of period   235,123       322,976  
    Cash and cash equivalents, and restricted cash, end of period $ 274,691     $ 235,123  
           

    Net Loss Attributable to Enovix to Adjusted EBITDA Reconciliation

    While we prepare our consolidated financial statements in accordance with GAAP, we also utilize and present certain financial measures that are not based on GAAP. We refer to these financial measures as “non-GAAP” financial measures. In addition to our financial results determined in accordance with GAAP, we believe that EBITDA and Adjusted EBITDA are useful measures in evaluating its financial and operational performance distinct and apart from financing costs, certain non-cash expenses and non-operational expenses.

    These non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures.

    We use non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors in assessing its operating performance and comparing its performance with competitors and other comparable companies. You should review the reconciliations below but not rely on any single financial measure to evaluate our business.

    “EBITDA” is defined as earnings (net loss) attributable to Enovix adjusted for interest expense, income tax benefit, depreciation and amortization expense. “Adjusted EBITDA” includes additional adjustments to EBITDA such as stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, impairment of equipment and other special items as determined by management which it does not believe to be indicative of its underlying business trends.

    Below is a reconciliation of net loss attributable to Enovix on a GAAP basis to the non-GAAP EBITDA and Adjusted EBITDA financial measures for the periods presented below (in thousands):

      Quarters Ended   Fiscal Years Ended
      December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Net loss attributable to Enovix $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Interest expense   1,719       1,629       6,787       4,456  
    Income tax expense (benefit)   1,152       (633 )     (1,392 )     (633 )
    Depreciation and amortization   7,544       24,009       44,961       34,009  
    EBITDA   (27,050 )     (34,972 )     (171,885 )     (176,239 )
    Stock-based compensation expense (1)   10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants   5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up   —       2,206       1,907       2,206  
    Impairment of equipment   —       —       —       4,411  
    Restructuring cost (1)   —       —       41,807       3,021  
    Acquisition cost   —       158       —       1,273  
    Adjusted EBITDA $ (11,728 )   $ (23,028 )   $ (82,794 )   $ (102,415 )

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.


    Free Cash Flow Reconciliation

    We define “Free Cash Flow” as (i) net cash from operating activities less (ii) capital expenditures, net of proceeds from disposals of property and equipment, all of which are derived from our Consolidated Statements of Cash Flow. The presentation of non-GAAP Free Cash Flow is not intended as an alternative measure of cash flows from operations, as determined in accordance with GAAP. We believe that this financial measure is useful to investors because it provides investors to view our performance using the same tool that we use to gauge our progress in achieving our goals and it is an indication of cash flow that may be available to fund investments in future growth initiatives. Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measures for the periods presented below (in thousands):

      Fiscal Years
        2024       2023  
    Net cash used in operating activities $ (108,633 )   $ (104,636 )
    Capital expenditures   (76,188 )     (61,795 )
    Free Cash Flow $ (184,821 )   $ (166,431 )

    Other Non-GAAP Financial Measures Reconciliation
    (In Thousands, Except Share and per Share Amounts)

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    Revenue   $ 9,717     $ 7,381     $ 23,074     $ 7,644  
                     
    GAAP cost of revenue   $ 8,665     $ 19,769     $ 25,119     $ 63,061  
    Stock-based compensation expense     (124 )     (459 )     (320 )     (5,460 )
    Inventory step-up     —       (2,206 )     (1,907 )     (2,206 )
    Non-GAAP cost of revenue   $ 8,541     $ 17,104     $ 22,892     $ 55,395  
                     
    GAAP gross margin   $ 1,052     $ (12,388 )   $ (2,045 )   $ (55,417 )
    Stock-based compensation expense     124       459       320       5,460  
    Inventory step-up     —       2,206       1,907       2,206  
    Non-GAAP gross margin   $ 1,176     $ (9,723 )   $ 182     $ (47,751 )
                     
    GAAP research and development (R&D) expense   $ 22,433     $ 34,582     $ 124,506     $ 88,392  
    Stock-based compensation expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Amortization of intangible assets     (416 )     (277 )     (1,664 )     (277 )
    Non-GAAP R&D expense   $ 16,935     $ 28,968     $ 97,989     $ 60,706  
                     
    GAAP selling, general and administrative (SG&A) expense   $ 13,135     $ 17,807     $ 74,311     $ 79,014  
    Stock-based compensation expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (773 )     (536 )     (3,077 )     (536 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP SG&A expense   $ 7,361     $ 11,289     $ 38,786     $ 40,981  
                     
    GAAP operating expenses   $ 35,568     $ 52,389     $ 240,624     $ 174,838  
    Stock-based compensation expense included in R&D expense     (5,082 )     (5,337 )     (24,853 )     (27,409 )
    Stock-based compensation expense included in SG&A expense     (5,001 )     (5,824 )     (32,448 )     (36,224 )
    Amortization of intangible assets     (1,189 )     (813 )     (4,741 )     (813 )
    Impairment of equipment     —       —       —       (4,411 )
    Restructuring cost (1)     —       —       (41,807 )     (3,021 )
    Acquisition cost     —       (158 )     —       (1,273 )
    Non-GAAP operating expenses   $ 24,296     $ 40,257     $ 136,775     $ 101,687  

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

        Quarters Ended   Fiscal Years Ended
        December 29,
    2024
      December 31,
    2023
      December 29,
    2024
      December 31,
    2023
    GAAP loss from operations   $ (34,516 )   $ (64,777 )   $ (242,669 )   $ (230,255 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Amortization of intangible assets     1,189       813       4,741       813  
    Inventory step-up     —       2,206       1,907       2,206  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP loss from operations   $ (23,120 )   $ (49,980 )   $ (136,593 )   $ (149,438 )
                     
    GAAP net loss attributable to Enovix   $ (37,465 )   $ (59,977 )   $ (222,241 )   $ (214,071 )
    Stock-based compensation expense (1)     10,207       11,620       57,621       69,093  
    Change in fair value of common stock warrants     5,115       (2,040 )     (12,244 )     (6,180 )
    Inventory step-up     —       2,206       1,907       2,206  
    Amortization of intangible assets     1,189       813       4,741       813  
    Impairment of equipment     —       —       —       4,411  
    Restructuring cost (1)     —       —       41,807       3,021  
    Acquisition cost     —       158       —       1,273  
    Non-GAAP net loss attributable to Enovix shareholders   $ (20,954 )   $ (47,220 )   $ (128,409 )   $ (139,434 )
                     
    GAAP net loss per share attributable to Enovix, basic   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.35 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    GAAP net loss per share attributable to Enovix, diluted   $ (0.20 )   $ (0.36 )   $ (1.27 )   $ (1.38 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  
                     
    Non-GAAP net loss per share attributable to Enovix, basic   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.88 )
    GAAP weighted average number of common shares outstanding, basic     184,971,942       165,708,522       175,038,107       159,065,697  
                     
    Non-GAAP net loss per share attributable to Enovix, diluted   $ (0.11 )   $ (0.28 )   $ (0.73 )   $ (0.87 )
    GAAP weighted average number of common shares outstanding, diluted     184,971,942       165,708,522       175,038,107       159,575,555  

    ________________________
    (1)
    $1.2 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 29, 2024. $0.4 million of stock-based compensation expense is included in the restructuring cost line of the table above for the fiscal year ended December 31, 2023.

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Ansys Announces Q4 and FY 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q4 2024 Results

    • Revenue of $882.2 million
    • GAAP diluted earnings per share of $3.21 and non-GAAP diluted earnings per share of $4.44
    • GAAP operating profit margin of 40.3% and non-GAAP operating profit margin of 53.3%
    • Operating cash flows of $258.0 million and unlevered operating cash flows of $266.8 million
    • Annual contract value (ACV) of $1,094.6 million

    /FY 2024 Results

    • Revenue of $2,544.8 million
    • GAAP diluted earnings per share of $6.55 and non-GAAP diluted earnings per share of $10.91
    • GAAP operating profit margin of 28.2% and non-GAAP operating profit margin of 45.7%
    • Operating cash flows of $795.7 million and unlevered operating cash flows of $834.6 million
    • ACV of $2,563.0 million
    • Deferred revenue and backlog of $1,718.3 million on December 31, 2024

    PITTSBURGH, Feb. 19, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS), today reported fourth quarter 2024 revenue of $882.2 million, an increase of 10% in reported currency, or 11% in constant currency, when compared to the fourth quarter of 2023. For FY 2024, revenue growth was 12% in reported currency, or 13% in constant currency, when compared to FY 2023. For the fourth quarter of 2024, the Company reported diluted earnings per share of $3.21 and $4.44 on a GAAP and non-GAAP basis, respectively, compared to $3.14 and $3.94 on a GAAP and non-GAAP basis, respectively, for the fourth quarter of 2023. For FY 2024, the Company reported diluted earnings per share of $6.55 and $10.91 on a GAAP and non-GAAP basis, respectively, compared to $5.73 and $8.80 on a GAAP and non-GAAP basis, respectively, for FY 2023. Additionally, the Company reported fourth quarter and FY 2024 ACV growth of 15% and 11% in reported currency, respectively, or 16% and 13% in constant currency, respectively, when compared to the fourth quarter and FY 2023. Fourth quarter 2024 ACV of $1.1 billion contributed 43% of the full year 2024 ACV while Q1, Q2 and Q3 each contributed 16%, 20% and 21%, respectively. The Company expects double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. As previously announced by Synopsys, Ansys and Synopsys have received conditional clearance from the European Commission. The U.K. Competition and Markets Authority provisionally accepted our remedies towards a transaction approval in Phase 1. The State Administration for Market Regulation of the People’s Republic of China has officially accepted our filing, and its review of the proposed transaction is in process. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.
     

    / Summary of Financial Results

    Ansys’ fourth quarter and fiscal year (FY) 2024 and 2023 financial results are presented below. The 2024 and 2023 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024
      Q4 QTD
    2023
      % Change   FY
    2024
      FY
    2023
      % Change
    Revenue $ 882,174     $ 805,108     9.6 %   $ 2,544,809     $ 2,269,949     12.1 %
    Net income $ 282,688     $ 274,762     2.9 %   $ 575,692     $ 500,412     15.0 %
    Diluted earnings per share $ 3.21     $ 3.14     2.2 %   $ 6.55     $ 5.73     14.3 %
    Gross margin   91.8 %     91.3 %         89.0 %     88.0 %    
    Operating profit margin   40.3 %     41.4 %         28.2 %     27.6 %    
    Effective tax rate   21.3 %     15.4 %         19.8 %     15.5 %    
                                           
      Non-GAAP
    (in thousands, except per share data and percentages) Q4 QTD
    2024
      Q4 QTD
    2023
      % Change   FY
    2024
      FY
    2023
      % Change
    Net income $ 391,044     $ 345,317     13.2 %   $ 959,252     $ 769,308     24.7 %
    Diluted earnings per share $ 4.44     $ 3.94     12.7 %   $ 10.91     $ 8.80     24.0 %
    Gross margin   94.6 %     94.3 %         93.1 %     92.2 %    
    Operating profit margin   53.3 %     53.0 %         45.7 %     42.6 %    
    Effective tax rate   17.5 %     17.5 %         17.5 %     17.5 %    
                                           
      Other Metrics
    (in thousands, except percentages) Q4 QTD
    2024
      Q4 QTD
    2023
      % Change   FY
    2024
      FY
    2023
      % Change
    ACV $   1,094,552   $   955,161   14.6 %   $ 2,563,029   $ 2,300,466   11.4 %
    Operating cash flows $   257,973   $   232,722   10.9 %   $    795,740   $    717,122   11.0 %
    Unlevered operating cash flows $   266,777   $   242,848   9.9 %   $    834,582   $    755,129   10.5 %
                                       

    / Key Long-Term Metrics

    The Company’s long-term outlook covering the years 2022 through 2025 provided at the 2022 Investor Update has been suspended given the pending transaction with Synopsys. Below is a summary of key metrics covering the years 2022 through 2024.

    • Consistent double-digit ACV growth with a 2022 through 2024 CAGR of 12.3% at actual exchange rates and 13.0% at 2022 exchange rates.
    • Unlevered operating cash flows grew faster than ACV with a 2022 through 2024 CAGR of 13.5%.
    • With FY 2024 unlevered operating cash flows of $834.6 million, cumulative 3-year unlevered operating cash flows (FY 2022 to 2024) are $2.2 billion.
    • Note: 2024 unlevered operating cash flows includes $28.2 million of cash outflows primarily associated with the pending transaction with Synopsys.
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q4 QTD
    2024
      Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023
      % Change   % Change in
    Constant Currency
    ACV $    1,094,552   $      1,110,711   $        955,161   14.6 %   16.3 %
                       
    (in thousands, except percentages) FY
    2024
      FY 2024 in
    Constant Currency
      FY
    2023
      % Change   % Change in
    Constant Currency
    ACV $    2,563,029   $      2,593,819   $    2,300,466   11.4 %   12.8 %
                                 

    *Subscription lease ACV includes the bundled arrangement of time-based licenses with related maintenance.
    **Perpetual and service ACV includes perpetual licenses, with related maintenance, and services.

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

      

    / Revenue

    (in thousands, except percentages) Q4 QTD
    2024
      Q4 QTD 2024 in Constant Currency   Q4 QTD
    2023
      % Change   % Change in
    Constant Currency
    Revenue $        882,174   $         893,996   $        805,108   9.6 %   11.0 %
                       
    (in thousands, except percentages) FY
    2024
      FY 2024 in
    Constant Currency
      FY
    2023
      % Change   % Change in
    Constant Currency
    Revenue $    2,544,809   $     2,570,207   $    2,269,949   12.1 %   13.2 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q4 QTD
    2024
      % of Total   Q4 QTD
    2023
      % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        441,120   50.0 %   $        399,556   49.6 %   10.4 %   12.1 %
    Perpetual            102,295   11.6 %              102,721   12.8 %   (0.4)%   1.7 %
    Maintenance1            319,381   36.2 %              283,130   35.2 %   12.8 %   13.8 %
    Service              19,378   2.2 %                19,701   2.4 %   (1.6)%   (1.2)%
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024
      % of Total   FY
    2023
      % of Total   % Change   % Change in Constant Currency
    Subscription Lease $        948,831   37.3 %   $        786,050   34.6 %   20.7 %   22.1 %
    Perpetual            315,085   12.4 %              302,698   13.3 %   4.1 %   5.1 %
    Maintenance1         1,209,217   47.5 %           1,103,523   48.6 %   9.6 %   10.6 %
    Service              71,676   2.8 %                77,678   3.4 %   (7.7)%   (7.4)%
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q4 QTD
    2024
      % of Total   Q4 QTD
    2023
      % of Total   % Change   % Change in Constant Currency
    Americas $        457,752   51.9 %   $        410,681   51.0 %   11.5 %   11.5 %
                           
    Germany              98,527   11.2 %                81,828   10.2 %   20.4 %   24.2 %
    Other EMEA            170,541   19.3 %              155,023   19.3 %   10.0 %   12.2 %
    EMEA            269,068   30.5 %              236,851   29.4 %   13.6 %   16.3 %
                           
    Japan              52,294   5.9 %                61,243   7.6 %   (14.6)%   (11.1)%
    Other Asia-Pacific            103,060   11.7 %                96,333   12.0 %   7.0 %   10.1 %
    Asia-Pacific            155,354   17.6 %              157,576   19.6 %   (1.4)%   1.8 %
                           
    Total $        882,174       $        805,108       9.6 %   11.0 %
                           
                           
    (in thousands, except percentages) FY
    2024
      % of Total   FY
    2023
      % of Total   % Change   % Change in Constant Currency
    Americas $    1,297,367   51.0 %   $    1,106,242   48.7 %   17.3 %   17.3 %
                           
    Germany            209,714   8.2 %              199,068   8.8 %   5.3 %   6.6 %
    Other EMEA            445,791   17.5 %              406,719   17.9 %   9.6 %   9.8 %
    EMEA            655,505   25.8 %              605,787   26.7 %   8.2 %   8.8 %
                           
    Japan            184,547   7.3 %              203,013   8.9 %   (9.1)%   (2.1)%
    Other Asia-Pacific            407,390   16.0 %              354,907   15.6 %   14.8 %   16.9 %
    Asia-Pacific            591,937   23.3 %              557,920   24.6 %   6.1 %   10.0 %
                           
    Total $    2,544,809       $    2,269,949       12.1 %   13.2 %
                                   
    REVENUE BY CHANNEL
                   
      Q4 QTD
    2024
      Q4 QTD
    2023
      FY
    2024
      FY
    2023
    Direct revenue, as a percentage of total revenue 79.7 %   74.5 %   75.2 %   73.9 %
    Indirect revenue, as a percentage of total revenue 20.3 %   25.5 %   24.8 %   26.1 %
                           

    / Deferred Revenue and Backlog

    (in thousands) December 31,
    2024
      September 30,
    2024
      December 31,
    2023
      September 30,
    2023
    Current Deferred Revenue $            504,527   $            427,188   $            457,514   $            349,668
    Current Backlog                524,617                  475,604                  439,879                  424,547
    Total Current Deferred Revenue and Backlog            1,029,144                  902,792                  897,393                  774,215
                   
    Long-Term Deferred Revenue                  31,778                    24,150                    22,240                    20,765
    Long-Term Backlog                657,345                  536,855                  552,951                  410,697
    Total Long-Term Deferred Revenue and Backlog                689,123                  561,005                  575,191                  431,462
                   
    Total Deferred Revenue and Backlog $        1,718,267   $        1,463,797   $        1,472,584   $        1,205,677
                           

    / Currency

    The fourth quarter and FY 2024 revenue, operating income, ACV and deferred revenue and backlog, as compared to the fourth quarter and FY 2023, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income, ACV, and deferred revenue and backlog based on 2023 exchange rates are reflected in the tables below. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q4 QTD
    2024
      FY
    2024
    Revenue $       (11,822 )   $       (25,398 )
    GAAP operating income $          (9,057 )   $       (19,588 )
    Non-GAAP operating income $          (9,076 )   $       (19,335 )
    ACV $       (16,159 )   $       (30,790 )
    Deferred revenue and backlog $       (38,306 )   $       (40,993 )
                   

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    December 31, 2024                    1.04                       157
    December 31, 2023                    1.10                       141
    December 31, 2022                    1.07                       131
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.07                       153
    December 31, 2023                    1.08                       148
           
      Average Exchange Rates
    Twelve Months Ended EUR/USD   USD/JPY
    December 31, 2024                    1.08                       151
    December 31, 2023                    1.08                       140
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) December 31, 2024   December 31, 2023
    ASSETS:      
    Cash & short-term investments $                      1,497,517   $                          860,390
    Accounts receivable, net                          1,022,850                                864,526
    Goodwill                          3,778,128                             3,805,874
    Other intangibles, net                              716,244                                835,417
    Other assets                          1,036,692                                956,668
    Total assets $                      8,051,431   $                      7,322,875
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          504,527   $                          457,514
    Long-term debt                              754,208                                753,891
    Other liabilities                              706,256                                721,106
    Stockholders’ equity                          6,086,440                             5,390,364
    Total liabilities & stockholders’ equity $                      8,051,431   $                      7,322,875
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
      Three Months Ended   Twelve Months Ended
    (in thousands, except per share data) December 31,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
    Revenue:              
    Software licenses $                   543,415     $                   502,277     $               1,263,916     $           1,088,748  
    Maintenance and service                       338,759                           302,831                        1,280,893                   1,181,201  
    Total revenue                       882,174                           805,108                        2,544,809                   2,269,949  
    Cost of sales:              
    Software licenses                         12,947                             10,909                             45,367                         40,004  
    Amortization                         21,801                             20,586                             88,560                         80,990  
    Maintenance and service                         37,940                             38,554                           145,892                       150,304  
    Total cost of sales                         72,688                             70,049                           279,819                       271,298  
    Gross profit                       809,486                           735,059                        2,264,990                   1,998,651  
    Operating expenses:              
    Selling, general and administrative                       314,009                           269,857                           995,340                       855,135  
    Research and development                       134,259                           126,288                           528,014                       494,869  
    Amortization                            5,623                                5,914                             23,748                         22,512  
    Total operating expenses                       453,891                           402,059                        1,547,102                   1,372,516  
    Operating income                       355,595                           333,000                           717,888                       626,135  
    Interest income                         14,636                                7,199                             51,131                         19,588  
    Interest expense                        (10,924 )                          (12,551 )                          (47,849 )                     (47,145 )
    Other expense, net                               (14 )                            (2,876 )                            (3,132 )                       (6,440 )
    Income before income tax provision                       359,293                           324,772                           718,038                       592,138  
    Income tax provision                         76,605                             50,010                           142,346                         91,726  
    Net income $                   282,688     $                   274,762     $                   575,692     $              500,412  
    Earnings per share – basic:              
    Earnings per share $                          3.23     $                          3.16     $                          6.59     $                     5.76  
    Weighted average shares                         87,455                             86,888                             87,313                         86,833  
    Earnings per share – diluted:              
    Earnings per share $                          3.21     $                          3.14     $                          6.55     $                     5.73  
    Weighted average shares                         88,137                             87,541                             87,895                         87,386  
                                   

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2024, the anniversary dates would be July 1, 2025 and July 1, 2026. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2027, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2024 – June 30, 2025, would each contribute $100,000 to ACV for fiscal year 2024 with no contribution to ACV for fiscal year 2025.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2024 – June 30, 2027, would each contribute $100,000 to ACV in each of fiscal years 2024, 2025 and 2026. There would be no contribution to ACV for fiscal year 2027 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2024 would contribute $200,000 to ACV in fiscal year 2024.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      809,486   91.8 %   $      355,595   40.3 %   $    282,688     $        3.21  
    Stock-based compensation expense               3,635   0.4 %              73,016   8.2 %             73,016                 0.83  
    Excess payroll taxes related to stock-based awards                     39   — %                1,272   0.2 %               1,272                 0.01  
    Amortization of intangible assets from acquisitions             21,801   2.4 %              27,424   3.1 %             27,424                 0.31  
    Expenses related to business combinations                     —   — %              12,988   1.5 %             12,988                 0.15  
    Adjustment for income tax effect                     —   — %                      —   — %             (6,344 )             (0.07 )
    Total non-GAAP $      834,961   94.6 %   $      470,295   53.3 %   $    391,044     $        4.44  
                                           

    1 Diluted weighted average shares were 88,137.

      Three Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      735,059   91.3 %   $     333,000   41.4 %   $    274,762     $        3.14  
    Stock-based compensation expense               3,413   0.4 %              63,358   7.9 %             63,358                 0.73  
    Excess payroll taxes related to stock-based awards                       4   — %                   271   — %                  271                    —  
    Amortization of intangible assets from acquisitions             20,586   2.6 %              26,500   3.3 %             26,500                 0.30  
    Expenses related to business combinations                     —   — %                3,664   0.4 %               3,664                 0.04  
    Adjustment for income tax effect                     —   — %                      —   — %           (23,238 )             (0.27 )
    Total non-GAAP $      759,062   94.3 %   $     426,793   53.0 %   $    345,317     $        3.94  
                                           

    1 Diluted weighted average shares were 87,541.

      Twelve Months Ended
      December 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   2,264,990   89.0 %   $     717,888   28.2 %   $    575,692     $        6.55  
    Stock-based compensation expense             14,313   0.6 %           270,900   10.7 %           270,900                 3.08  
    Excess payroll taxes related to stock-based awards                  506   — %                8,643   0.3 %               8,643                 0.10  
    Amortization of intangible assets from acquisitions             88,560   3.5 %           112,308   4.4 %           112,308                 1.28  
    Expenses related to business combinations                     —   — %             52,841   2.1 %             52,841                 0.60  
    Adjustment for income tax effect                     —   — %                      —   — %           (61,132 )             (0.70 )
    Total non-GAAP $   2,368,369   93.1 %   $ 1,162,580   45.7 %   $    959,252     $      10.91  
                                           

    1 Diluted weighted average shares were 87,895.

      Twelve Months Ended
      December 31, 2023
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $   1,998,651   88.0 %   $     626,135   27.6 %   $    500,412     $        5.73  
    Stock-based compensation expense             13,337   0.6 %           221,891   9.9 %           221,891                 2.54  
    Excess payroll taxes related to stock-based awards                  307   0.1 %                5,541   0.2 %               5,541                 0.06  
    Amortization of intangible assets from acquisitions             80,990   3.5 %           103,502   4.5 %           103,502                 1.18  
    Expenses related to business combinations                     —   — %                9,422   0.4 %               9,422                 0.11  
    Adjustment for income tax effect                     —   — %                      —   — %           (71,460 )             (0.82 )
    Total non-GAAP $   2,093,285   92.2 %   $     966,491   42.6 %   $    769,308     $        8.80  
                                           

    1 Diluted weighted average shares were 87,386.

      Three Months Ended   Twelve Months Ended
    (in thousands) December 31,
    2024
      December 31,
    2023
      December 31,
    2024
      December 31,
    2023
      December 31,
    2022
    Net cash provided by operating activities $            257,973     $            232,722     $            795,740     $            717,122     $            631,003  
    Cash paid for interest                  10,671                      12,274                      47,081                      46,069                      20,844  
    Tax benefit                   (1,867 )                     (2,148 )                     (8,239 )                     (8,062 )                     (3,752 )
    Unlevered operating cash flows $            266,777     $            242,848     $            834,582     $            755,129     $            648,095  
                                           

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.

    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2024 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2023 comparable period, rather than the actual exchange rates in effect for 2024. Constant currency growth rates are calculated by adjusting the 2024 period reported amounts by the 2024 currency fluctuation impacts and comparing the adjusted amounts to the 2023 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target,” or other words of similar meaning. Forward-looking statements include those about market opportunity, including our total addressable market, the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency, or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending; the extent of corporate benefits from such spending including with respect to customer relationship management; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social, and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes, and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

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    The MIL Network –

    February 20, 2025
  • MIL-OSI: Vital Energy Reports Fourth-Quarter and Full-Year 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    Reports record total and oil production for 4Q-24 and FY-24

    Updates development inventory to >11 years of oil-weighted locations

    TULSA, OK, Feb. 19, 2025 (GLOBE NEWSWIRE) — Vital Energy, Inc. (NYSE: VTLE) (“Vital Energy” or the “Company”) today reported fourth-quarter and full-year 2024 financial and operating results and provided its 2025 outlook. Supplemental slides have been posted to the Company’s website and can be found at www.vitalenergy.com. A conference call to discuss results is planned for 7:30 a.m. CT, Thursday, February 20, 2025. A webcast will be available on the Company’s website.

    Fourth-Quarter 2024 Highlights

    • Successfully integrated Point Energy assets; acquired production exceeding expectations and operating cost reductions in-line with expectations
    • Reported a net loss of $359.4 million, Adjusted Net Income1 of $86.5 million and cash flows from operating activities of $257.2 million
    • Generated Consolidated EBITDAX1 of $383.5 million and Adjusted Free Cash Flow1 of $110.8 million
    • Produced Company-record 147.8 thousand barrels of oil equivalent per day (“MBOE/d”) and oil production of 69.8 thousand barrels of oil per day (“MBO/d”)
    • Reported lease operating expense (“LOE”) of $8.89 per BOE, below guidance of $9.35 per BOE
    • Reported capital investments of $226.1 million, excluding non-budgeted acquisitions and leasehold expenditures

    Full-Year 2024 Highlights

    • Increased oil-weighted inventory to ~925 locations, ~400 of which breakeven below $50 per barrel WTI
    • Issued an aggregate $1 billion of senior unsecured notes due 2032 at 7.875% and utilized the proceeds to repurchase higher coupon notes, resulting in annualized interest expense savings of $11 million
    • Reported a net loss of $173.5 million, Adjusted Net Income1 of $270.0 million and cash flows from operating activities of $1.0 billion
    • Generated Consolidated EBITDAX1 of $1.3 billion and Adjusted Free Cash Flow1 of $232.8 million
    • Reported year-end 2024 proved reserves of 455.3 million BOE, an increase of 12% versus prior year

    1Non-GAAP financial measure; please see supplemental reconciliations of GAAP to non-GAAP financial measures at the end of this release. 

    “We strengthened our business in 2024 through enhanced scale, optimized assets and a lengthened runway of high-quality inventory,” said Jason Pigott, President and Chief Executive Officer. “We successfully integrated our largest ever asset purchase in the Delaware Basin and early results positively impacted our operating and financial performance. Vital Energy continues to show that our talented people can capture important synergies from acquisitions while expanding inventory.”

    “In 2025, our primary goals are reducing costs, maximizing Adjusted Free Cash Flow generation, absolute debt reduction, and extending and enhancing our existing inventory,” continued Pigott. “Our inventory provides us with ample high-return development opportunities and a strong outlook for Adjusted Free Cash Flow generation. Recent operational achievements, like horseshoe wells, are creating new efficiencies and allowing us to develop highly productive, stranded leasehold. We will continue to focus on optimizing our asset base to achieve our cash flow and debt repayment targets.”

    Fourth-Quarter 2024 Financial and Operations Summary
    Financial Results. The Company reported a net loss of $359.4 million, or $(9.59) per diluted share, which included a non-cash pre-tax impairment loss on oil and gas properties of $481.3 million, and Adjusted Net Income of $86.5 million, or $2.30 per adjusted diluted share. Cash flows from operating activities were $257.2 million and Consolidated EBITDAX was $383.5 million.

    Production. Vital Energy’s total and oil production exceeded the high end of guidance, averaging 147,819 BOE/d and 69,827 BO/d, respectively. Volumes were driven by better-than-expected production from the Point Energy assets.

    Capital Investments. Total capital investments, excluding non-budgeted acquisitions and leasehold expenditures, were $226 million, including approximately $17 million of additional drilling and completions investments related to increased working interest and carried interest and $5 million from acceleration of activity into the fourth quarter.

    Investments included $190 million for drilling and completions, $22 million in infrastructure investments, $8 million in other capitalized costs and $6 million in land, exploration and data-related costs.

    Operating Expenses. LOE during the period was $8.89 per BOE, below guidance of $9.35 per BOE, as the Company integrated its Point Energy assets. Lower expenses were primarily related to reduced workover activity on the Point Energy assets during integration.

    General and Administrative Expenses. General and administrative expenses totaled $1.95 per BOE for fourth-quarter 2024, in line with guidance. General and administrative expenses, excluding long-term incentive plan (“LTIP”) and transaction expenses were $1.71 per BOE. Cash LTIP expenses were $0.02 per BOE and reflected the decrease in Vital Energy’s common stock price during the third quarter. Non-cash LTIP expenses were $0.22 per BOE.

    Liquidity. At December 31, 2024, the Company had $880 million drawn on its $1.5 billion senior secured credit facility and cash and cash equivalents of $40 million.

    2025 Outlook

    Vital Energy’s 2025 development plan is designed to maximize cash flow to facilitate debt repayment, supported by its robust hedge position. In comparison to the Company’s earlier projections, the finalized 2025 outlook has lower capital investment levels and slightly lower oil production. In 2025, the Company expects to generate approximately $330 million of Adjusted Free Cash Flow at $70 per barrel WTI.

    Capital Investments. Vital Energy plans to invest $825 – $925 million in 2025, excluding non-budgeted acquisitions and leasehold expenditures. Efficiencies and lower costs are driving capital investments approximately 3% lower than earlier projections while expecting to complete approximately the same net lateral feet as in 2024.

    Production. The Company expects total production of 134.0 – 140.0 MBOE/d and oil production of 62.5 – 66.5 MBO/d. Production is approximately 3% lower than earlier projections. The shortfall is related to operational delays and the underperformance of a seven-well development package in Upton County.

    Operating Expenses. The Company has made significant progress reducing operating expenses through integration of its Point Energy assets. Some workover expense was deferred from fourth-quarter 2024 into the first quarter of 2025. Average LOE for the two quarters is expected to be around $9.20 per BOE, putting the Company on pace to achieve LOE below $9.00 per BOE by the end of 2025.

    Oil-Weighted Inventory

    The Company has continued to extend and enhance its inventory of high-return development locations. At year-end 2024, Vital Energy had approximately 925 locations with an average breakeven WTI oil price of around $50 WTI. Approximately 400 of these locations breakeven below $50 per barrel WTI. Additionally, there are an additional approximately 250 locations that can be added to inventory pending successful delineation.

    2024 Proved Reserves

    Vital Energy’s total proved reserves at year-end 2024 were 455.3 MMBOE (40% oil, 70% developed). The standardized measure of discounted net cash flows was $4.22 billion and the PV-10 value was $4.51 billion utilizing SEC benchmark pricing of $75.48 per barrel WTI for oil ($76.76 per barrel average realized price) and $2.13 per MMBtu Henry Hub for natural gas ($0.85 per Mcf average realized price).

    First-Quarter 2025 Guidance

    The table below reflects the Company’s guidance for production and capital investments.

        1Q-25E
    Total production (MBOE/d)           135.0 – 141.0
    Oil production (MBO/d)           62.0 – 66.0
    Capital investments, excluding non-budgeted acquisitions ($ MM)           $230 – $260
         

    The table below reflects the Company’s guidance for select revenue and expense items.

        1Q-25E
    Average sales price realizations (excluding derivatives):    
    Oil (% of WTI)           101%
    NGL (% of WTI)           26%
    Natural gas (% of Henry Hub)           50%
         
    Net settlements received (paid) for matured commodity derivatives ($ MM):    
    Oil           $14
    NGL           ($2)
    Natural gas           $0
         
    Selected average costs & expenses:    
    Lease operating expenses ($ MM)           $115 – $120
    Production and ad valorem taxes (% of oil, NGL and natural gas sales revenues)           6.30%
    Oil transportation and marketing expenses ($ MM)           $11.5 – $12.5
    Gas gathering, processing and transportation expenses ($ MM)           $7.0 – $8.0
    General and administrative expenses (excluding LTIP and transaction expenses, $ MM)           $21.5 – $23.0
    General and administrative expenses (LTIP cash, $ MM)           $0.5 – $0.6
    General and administrative expenses (LTIP non-cash, $ MM)           $3.0 – $3.5
    Depletion, depreciation and amortization ($ MM)           $180 – $190
         

    Conference Call Details

    Vital Energy plans to host a conference call at 7:30 a.m. CT on Thursday, February 20, 2025, to discuss its fourth-quarter and full-year 2024 financial and operating results and its 2025 outlook. Supplemental slides will be posted to the Company’s website. Interested parties are invited to listen to the call via the Company’s website at www.vitalenergy.com, under the tab for “Investor Relations | News & Presentations | Upcoming Events.”

    About Vital Energy

    Vital Energy, Inc. is an independent energy company with headquarters in Tulsa, Oklahoma. Vital Energy’s business strategy is focused on the acquisition, exploration and development of oil and natural gas properties in the Permian Basin of West Texas.

    Additional information about Vital Energy may be found on its website at www.vitalenergy.com.

    Forward-Looking Statements
    This press release and any oral statements made regarding the contents of this release, including in the conference call referenced herein, contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, that address activities that Vital Energy assumes, plans, expects, believes, intends, projects, indicates, enables, transforms, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events. Such statements are not guarantees of future performance and involve risks, assumptions and uncertainties. General risks relating to Vital Energy include, but are not limited to, continuing and worsening inflationary pressures and associated changes in monetary policy that may cause costs to rise; changes in domestic and global production, supply and demand for commodities, including as a result of actions by the Organization of Petroleum Exporting Countries and other producing countries (“OPEC+”) and the Russian-Ukrainian or Israeli-Hamas military conflicts, the decline in prices of oil, natural gas liquids and natural gas and the related impact to financial statements as a result of asset impairments and revisions to reserve estimates, reduced demand due to shifting market perception towards the oil and gas industry; competition in the oil and gas industry; the ability of the Company to execute its strategies, including its ability to successfully identify and consummate strategic acquisitions at purchase prices that are accretive to its financial results and to successfully integrate acquired businesses, assets and properties and its ability to successfully execute on its strategy to enhance well productivity, including by drilling long-lateral horseshoe wells, pipeline transportation and storage constraints in the Permian Basin, the effects and duration of the outbreak of disease, and any related government policies and actions, long-term performance of wells, drilling and operating risks, the possibility of production curtailment, the impact of new laws and regulations, including those regarding the use of hydraulic fracturing, and under the Inflation Reduction Act (the “IRA”), including those related to climate change, the impact of legislation or regulatory initiatives intended to address induced seismicity on our ability to conduct our operations; uncertainties in estimating reserves and production results; hedging activities, tariffs on steel, the impacts of severe weather, including the freezing of wells and pipelines in the Permian Basin due to cold weather, technological innovations and scientific developments, physical and transition risks associated with climate change, to ESG and sustainability-related matters, risks related to our public statements with respect to such matters that may be subject to heightened scrutiny from public and governmental authorities related to the risk of potential “greenwashing,” i.e., misleading information or false claims overstating potential sustainability-related benefits, risks regarding potentially conflicting anti-ESG initiatives from certain U.S. state or other governments, possible impacts of litigation and regulations, the impact of the Company’s transactions, if any, with its securities from time to time, the impact of new environmental, health and safety requirements applicable to the Company’s business activities, the possibility of the elimination of federal income tax deductions for oil and gas exploration and development and imposition of any additional taxes under the IRA or otherwise, and other factors, including those and other risks described in its Annual Report on Form 10-K for the year ended December 31, 2023 (the “2023 Annual Report”), subsequent Quarterly Reports on Form 10-Q and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). These documents are available through Vital Energy’s website at www.vitalenergy.com under the tab “Investor Relations” or through the SEC’s Electronic Data Gathering and Analysis Retrieval System at www.sec.gov. Any of these factors could cause Vital Energy’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, Vital Energy can give no assurance that its future results will be as estimated. Any forward-looking statement speaks only as of the date on which such statement is made. Vital Energy does not intend to, and disclaims any obligation to, correct, update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

    This press release and any accompanying disclosures include financial measures that are not in accordance with generally accepted accounting principles (“GAAP”), such as Adjusted Free Cash Flow, Adjusted Net Income, Net Debt and Consolidated EBITDAX. While management believes that such measures are useful for investors, they should not be used as a replacement for financial measures that are in accordance with GAAP. For a reconciliation of such non-GAAP financial measures to the nearest comparable measure in accordance with GAAP, please see the supplemental financial information at the end of this press release.

    Unless otherwise specified, references to “average sales price” refer to average sales price excluding the effects of the Company’s derivative transactions.

    All amounts, dollars and percentages presented in this press release are rounded and therefore approximate.

    Vital Energy, Inc.
    Selected operating data

        Three months ended December 31,   Year ended December 31,
          2024     2023       2024     2023
        (unaudited)   (unaudited)
    Sales volumes:                
    Oil (MBbl)             6,424     4,881       22,585     16,894
    NGL (MBbl)              3,703     2,808       13,270     9,128
    Natural gas (MMcf)             20,836     16,644       78,794     55,404
    Oil equivalent (MBOE)(1)             13,599     10,465       48,987     35,256
    Average daily oil equivalent sales volumes (BOE/d)(1)             147,819     113,747       133,845     96,591
    Average daily oil sales volumes (Bbl/d)(1)             69,827     53,070       61,708     46,284
    Average sales prices(1):                
    Oil ($/Bbl)(2)           $ 70.80   $ 79.37     $ 76.55   $ 78.64
    NGL ($/Bbl)(2)           $ 16.75   $ 14.14     $ 14.38   $ 15.00
    Natural gas ($/Mcf)(2)           $ 0.59   $ 0.90     $ 0.20   $ 1.14
    Average sales price ($/BOE)(2)           $ 38.92   $ 42.26     $ 39.51   $ 43.36
    Oil, with commodity derivatives ($/Bbl)(3)           $ 76.08   $ 77.73     $ 76.56   $ 76.99
    NGL, with commodity derivatives ($/Bbl)(3)           $ 16.75   $ 14.14     $ 14.29   $ 15.00
    Natural gas, with commodity derivatives ($/Mcf)(3)           $ 1.25   $ 1.18     $ 0.95   $ 1.34
    Average sales price, with commodity derivatives ($/BOE)(3)           $ 42.42   $ 41.94     $ 40.70   $ 42.87
    Selected average costs and expenses per BOE sold(1):                
    Lease operating expenses           $ 8.89   $ 8.33     $ 9.15   $ 7.41
    Production and ad valorem taxes             2.43     2.27       2.41     2.64
    Oil transportation and marketing expenses             0.76     0.85       0.92     1.17
    Gas gathering, processing and transportation expenses             0.42     0.16       0.36     0.06
    General and administrative (excluding LTIP and transaction expenses)             1.71     2.12       1.75     2.26
    Total selected operating expenses           $ 14.21   $ 13.73     $ 14.59   $ 13.54
    General and administrative (LTIP):                
    LTIP cash           $ 0.02   $ (0.09 )   $ 0.05   $ 0.11
    LTIP non-cash           $ 0.22   $ 0.22     $ 0.27   $ 0.28
    General and administrative (transaction expenses)           $ —   $ 0.79     $ 0.01   $ 0.32
    Depletion, depreciation and amortization           $ 15.77   $ 14.58     $ 15.15   $ 13.14

    _______________________________________________________________________________

    (1) The numbers presented are calculated based on actual amounts and may not recalculate using the rounded numbers presented in the table above.
    (2) Price reflects the average of actual sales prices received when control passes to the purchaser/customer adjusted for quality, certain transportation fees, geographical differentials, marketing bonuses or deductions and other factors affecting the price received at the delivery point.
    (3) Price reflects the after-effects of the Company’s commodity derivative transactions on its average sales prices. The Company’s calculation of such after-effects includes settlements of matured commodity derivatives during the respective periods.
       

    Vital Energy, Inc.
    Consolidated balance sheets

    (in thousands, except share data)   December 31, 2024   December 31, 2023
        (unaudited)
    Assets        
    Current assets:        
    Cash and cash equivalents           $ 40,179     $ 14,061  
    Accounts receivable, net             299,698       238,773  
    Derivatives             101,474       99,336  
    Other current assets             25,205       18,749  
    Total current assets             466,556       370,919  
    Property and equipment:        
    Oil and natural gas properties, full cost method:        
    Evaluated properties             13,587,040       11,799,155  
    Unevaluated properties not being depleted             242,792       195,457  
    Less: accumulated depletion and impairment             (8,966,200 )     (7,764,697 )
    Oil and natural gas properties, net             4,863,632       4,229,915  
    Midstream and other fixed assets, net             134,265       130,293  
    Property and equipment, net             4,997,897       4,360,208  
    Derivatives             34,564       51,071  
    Operating lease right-of-use assets             104,329       144,900  
    Deferred income taxes             239,685       188,836  
    Other noncurrent assets, net             35,915       33,647  
    Total assets           $ 5,878,946     $ 5,149,581  
    Liabilities and stockholders’ equity        
    Current liabilities:        
    Accounts payable and accrued liabilities           $ 185,115     $ 159,892  
    Accrued capital expenditures             95,593       91,937  
    Undistributed revenue and royalties             187,563       194,307  
    Operating lease liabilities             73,143       70,651  
    Other current liabilities             59,725       78,802  
    Total current liabilities             601,139       595,589  
    Long-term debt, net             2,454,242       1,609,424  
    Derivatives             5,814       —  
    Asset retirement obligations             82,941       81,680  
    Operating lease liabilities             26,733       71,343  
    Other noncurrent liabilities             7,506       6,288  
    Total liabilities             3,178,375       2,364,324  
    Commitments and contingencies        
    Stockholders’ equity:        
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, and zero and 595,104 issued and outstanding as of December 31, 2024 and 2023, respectively             —       6  
    Common stock, $0.01 par value, 80,000,000 shares authorized, and 38,144,248 and 35,413,551 issued and outstanding as of December 31, 2024 and December 31, 2023, respectively             381       354  
    Additional paid-in capital             3,823,241       3,733,775  
    Accumulated deficit             (1,123,051 )     (948,878 )
    Total stockholders’ equity             2,700,571       2,785,257  
    Total liabilities and stockholders’ equity           $ 5,878,946     $ 5,149,581  
                     

    Vital Energy, Inc.
    Consolidated statements of operations

        Three months ended December 31,   Year ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Revenues:                
    Oil sales           $ 454,852     $ 387,536     $ 1,728,971     $ 1,328,518  
    NGL sales             62,023       39,705       190,775       136,901  
    Natural gas sales             12,394       14,954       15,544       63,214  
    Sales of purchased oil             3,759       121       12,745       14,313  
    Other operating revenues             1,342       2,205       4,279       4,658  
    Total revenues             534,370       444,521       1,952,314       1,547,604  
    Costs and expenses:                
    Lease operating expenses             120,922       87,190       448,078       261,129  
    Production and ad valorem taxes             33,010       23,726       117,947       93,224  
    Oil transportation and marketing expenses             10,366       8,893       44,843       41,284  
    Gas gathering, processing and transportation expenses             5,759       1,642       17,825       2,013  
    Costs of purchased oil             3,912       209       13,243       15,065  
    General and administrative             26,644       31,766       101,578       104,819  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Other operating expenses, net             3,434       1,685       8,799       6,223  
    Total costs and expenses             900,645       309,391       1,976,379       988,655  
    Gain on disposal of assets, net             508       132       1,513       672  
    Operating income (loss)             (365,767 )     135,262       (22,552 )     559,621  
    Non-operating income (expense):                
    Gain (loss) on derivatives, net             (43,924 )     229,105       38,140       96,230  
    Interest expense             (53,564 )     (50,431 )     (177,794 )     (149,819 )
    Loss on extinguishment of debt, net             —       (4,039 )     (66,115 )     (4,039 )
    Other income, net             1,139       6,051       7,060       9,748  
    Total non-operating income (expense), net             (96,349 )     180,686       (198,709 )     (47,880 )
    Income (loss) before income taxes             (462,116 )     315,948       (221,261 )     511,741  
    Income tax benefit (expense)             102,724       (34,514 )     47,740       183,337  
    Net income (loss)              (359,392 )     281,434       (173,521 )     695,078  
    Preferred stock dividends             —       (449 )     (652 )     (449 )
    Net income (loss) available to common stockholders           $ (359,392 )   $ 280,985     $ (174,173 )   $ 694,629  
    Net income (loss) per common share:                
    Basic           $ (9.59 )   $ 10.04     $ (4.74 )   $ 34.30  
    Diluted           $ (9.59 )   $ 9.44     $ (4.74 )   $ 33.44  
    Weighted-average common shares outstanding:                
    Basic             37,477       27,991       36,725       20,254  
    Diluted             37,477       29,813       36,725       20,783  
                                     

    Vital Energy, Inc.
    Consolidated statements of cash flows

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Cash flows from operating activities:                
    Net income (loss)           $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                
    Share-settled equity-based compensation, net             3,398       2,592       14,646       10,994  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,648 )
    Loss on extinguishment of debt, net             —       4,039       66,115       4,039  
    Deferred income tax (benefit) expense             (102,474 )     31,089       (50,196 )     (189,060 )
    Other, net             8,055       5,672       27,663       13,983  
    Changes in operating assets and liabilities:                
    Accounts receivable, net             (74,978 )     (38,935 )     (61,163 )     (77,742 )
    Other current assets             1,211       6,835       (6,456 )     (2,754 )
    Other noncurrent assets, net             (315 )     (782 )     (1,151 )     484  
    Accounts payable and accrued liabilities             34,084       48,520       12,803       52,763  
    Undistributed revenue and royalties             (10,169 )     (32,106 )     (29,762 )     (31,907 )
    Other current liabilities             (23,572 )     7,190       (25,004 )     (5,656 )
    Other noncurrent liabilities             (5,972 )     (2,007 )     (17,097 )     (6,632 )
      Net cash provided by operating activities             257,174       233,734       1,000,330       812,956  
    Cash flows from investing activities:                
    Acquisitions of oil and natural gas properties, net             (19,686 )     (309,379 )     (850,911 )     (849,508 )
    Capital expenditures:                
    Oil and natural gas properties             (231,158 )     (162,351 )     (864,437 )     (617,397 )
    Midstream and other fixed assets             (6,711 )     (3,329 )     (23,341 )     (14,021 )
    Proceeds from dispositions of capital assets, net of selling costs             133       60       2,874       2,403  
    Other investing activities             —       311       (1,776 )     2,393  
      Net cash used in investing activities             (257,422 )     (474,688 )     (1,737,591 )     (1,476,130 )
    Cash flows from financing activities:                
    Borrowings on Senior Secured Credit Facility             310,000       135,000       1,750,000       765,000  
    Payments on Senior Secured Credit Facility             (290,000 )     —       (1,005,000 )     (700,000 )
    Issuance of senior unsecured notes             —       —       1,001,500       897,710  
    Extinguishment of debt             —       (457,792 )     (952,214 )     (457,792 )
    Proceeds from issuance of common stock, net of offering costs             —       220       —       161,223  
    Stock exchanged for tax withholding             (36 )     (21 )     (3,569 )     (3,077 )
    Payments for debt issuance costs             (340 )     (10,680 )     (22,078 )     (27,011 )
    Other, net             (1,389 )     (1,407 )     (5,260 )     (3,253 )
    Net cash provided by (used in) financing activities             18,235       (334,680 )     763,379       632,800  
    Net increase (decrease) in cash and cash equivalents             17,987       (575,634 )     26,118       (30,374 )
    Cash and cash equivalents, beginning of period             22,192       589,695       14,061       44,435  
    Cash and cash equivalents, end of period           $ 40,179     $ 14,061     $ 40,179     $ 14,061  
                                     

    Vital Energy, Inc.
    Supplemental reconciliations of GAAP to non-GAAP financial measures

    Non-GAAP financial measures

    The non-GAAP financial measures of Adjusted Free Cash Flow, Adjusted Net Income, Consolidated EBITDAX, Net Debt and Net Debt to Consolidated EBITDAX, as defined by the Company, may not be comparable to similarly titled measures used by other companies. Furthermore, these non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP measures of liquidity or financial performance, but rather should be considered in conjunction with GAAP measures, such as net income or loss, operating income or loss or cash flows from operating activities.

    Adjusted Free Cash Flow

    Adjusted Free Cash Flow is a non-GAAP financial measure that the Company defines as net cash provided by operating activities (GAAP) before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions, less capital investments, excluding non-budgeted acquisition costs. Management believes Adjusted Free Cash Flow is useful to management and investors in evaluating operating trends in its business that are affected by production, commodity prices, operating costs and other related factors. There are significant limitations to the use of Adjusted Free Cash Flow as a measure of performance, including the lack of comparability due to the different methods of calculating Adjusted Free Cash Flow reported by different companies.

    The following table presents a reconciliation of net cash provided by operating activities (GAAP) to Adjusted Free Cash Flow (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net cash provided by operating activities           $ 257,174     $ 233,734     $ 1,000,330     $ 812,956  
    Less:                
    Net changes in operating assets and liabilities             (79,711 )     (11,285 )     (127,830 )     (71,444 )
    General and administrative (transaction expenses)             19       (8,221 )     (548 )     (11,341 )
    Cash flows from operating activities before net changes in operating assets and liabilities and transaction expenses related to non-budgeted acquisitions              336,866       253,240       1,128,708       895,741  
    Less capital investments, excluding non-budgeted acquisition costs:                
    Oil and natural gas properties(1)(2)             221,033       179,696       873,637       663,025  
    Midstream and other fixed assets(1)             5,043       4,511       22,276       15,601  
    Total capital investments, excluding non-budgeted acquisition costs              226,076       184,207       895,913       678,626  
    Adjusted Free Cash Flow (non-GAAP)            $ 110,790     $ 69,033     $ 232,795     $ 217,115  

    _______________________________________________________________________________

    (1) Includes capitalized share-settled equity-based compensation and asset retirement costs.
    (2) For the three months and year ended December 31, 2024, capital investments for oil and natural gas properties, excluding non-budgeted acquisition costs, includes $16.8 million of additional drilling and completions investments related to increased working interest and carried interest.
       

    Adjusted Net Income

    Adjusted Net Income is a non-GAAP financial measure that the Company defines as net income or loss (GAAP) plus adjustments for mark-to-market on derivatives, premiums paid or received for commodity derivatives that matured during the period, organizational restructuring expenses, impairment expense, gains or losses on disposal of assets, income taxes, other non-recurring income and expenses and adjusted income tax expense. Management believes Adjusted Net Income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors.

    The following table presents a reconciliation of net income (loss) (GAAP) to Adjusted Net Income (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands, except per share data)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net income (loss)            $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Plus:                
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,068 )
    Settlements received for contingent consideration             —       311       —       1,813  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Impairment expense             481,305       —       481,305       —  
    Gain on disposal of assets, net             (508 )     (132 )     (1,513 )     (672 )
    Loss on extinguishment of debt, net             —       4,039       66,115       4,039  
    Income tax (benefit) expense             (102,724 )     34,514       (47,740 )     (183,337 )
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Adjusted income before adjusted income tax expense             110,952       97,608       346,171       416,618  
    Adjusted income tax expense(1)             (24,410 )     (21,474 )     (76,158 )     (91,656 )
    Adjusted Net Income (non-GAAP)           $ 86,542     $ 76,134     $ 270,013     $ 324,962  
    Net income (loss) per common share:                
    Basic           $ (9.59 )   $ 10.04     $ (4.74 )   $ 34.30  
    Diluted           $ (9.59 )   $ 9.44     $ (4.74 )   $ 33.44  
    Adjusted Net Income per common share:                
    Basic           $ 2.31     $ 2.72     $ 7.35     $ 16.04  
    Diluted           $ 2.31     $ 2.55     $ 7.35     $ 15.64  
    Adjusted diluted           $ 2.30     $ 2.55     $ 7.21     $ 15.64  
    Weighted-average common shares outstanding:                
    Basic             37,477       27,991       36,725       20,254  
    Diluted             37,477       29,813       36,725       20,783  
    Adjusted diluted             37,670       29,813       37,445       20,783  

    _______________________________________________________________________________

    (1) Adjusted income tax expense is calculated by applying a statutory tax rate of 22% for each of the periods ended December 31, 2024 and 2023.
       

    Consolidated EBITDAX

    Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as net income or loss (GAAP) plus adjustments for share-settled equity-based compensation, depletion, depreciation and amortization, impairment expense, organizational restructuring expenses, gains or losses on disposal of assets, mark-to-market on derivatives, accretion expense, interest expense, income taxes and other non-recurring income and expenses. Consolidated EBITDAX provides no information regarding a company’s capital structure, borrowings, interest costs, capital expenditures, working capital movement or tax position. Consolidated EBITDAX does not represent funds available for future discretionary use because it excludes funds required for debt service, capital expenditures, working capital, income taxes, franchise taxes and other commitments and obligations. However, management believes Consolidated EBITDAX is useful to an investor because this measure:

    • is used by investors in the oil and natural gas industry to measure a company’s operating performance without regard to items that can vary substantially from company to company depending upon accounting methods, the book value of assets, capital structure and the method by which assets were acquired, among other factors;
    • helps investors to more meaningfully evaluate and compare the results of the Company’s operations from period to period by removing the effect of the Company’s capital structure from the Company’s operating structure; and
    • is used by management for various purposes, including (i) as a measure of operating performance, (ii) as a measure of compliance under the Senior Secured Credit Facility, (iii) in presentations to the board of directors and (iv) as a basis for strategic planning and forecasting.

    There are significant limitations to the use of Consolidated EBITDAX as a measure of performance, including the inability to analyze the effect of certain recurring and non-recurring items that materially affect the Company’s net income or loss and the lack of comparability of results of operations to different companies due to the different methods of calculating Consolidated EBITDAX, or similarly titled measures, reported by different companies. The Company is subject to financial covenants under the Senior Secured Credit Facility, one of which establishes a maximum permitted ratio of Net Debt, as defined in the Senior Secured Credit Facility, to Consolidated EBITDAX. See Note 7 in the 2024 Annual Report, to be filed with the SEC, for additional discussion of the financial covenants under the Senior Secured Credit Facility. Additional information on Consolidated EBITDAX can be found in the Company’s Eleventh Amendment to the Senior Secured Credit Facility, as filed with the SEC on September 13, 2023.

    The following table presents a reconciliation of net income (loss) (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net income (loss)            $ (359,392 )   $ 281,434     $ (173,521 )   $ 695,078  
    Plus:                
    Share-settled equity-based compensation, net             3,398       2,592       14,646       10,994  
    Depletion, depreciation and amortization             214,498       152,626       741,966       463,244  
    Impairment expense             481,305       —       481,305       —  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Gain on disposal of assets, net             (508 )     (132 )     (1,513 )     (672 )
    Mark-to-market on derivatives:                
    (Gain) loss on derivatives, net             43,924       (229,105 )     (38,140 )     (96,230 )
    Settlements received (paid) for matured derivatives, net             47,571       (3,328 )     58,322       (17,068 )
    Settlements received for contingent consideration             —       311       —       1,813  
    Accretion expense             1,107       988       4,209       3,703  
    Interest expense             53,564       50,431       177,794       149,819  
    Loss extinguishment of debt, net             —       4,039       66,115       4,039  
    Income tax (benefit) expense             (102,724 )     34,514       (47,740 )     (183,337 )
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Consolidated EBITDAX (non-GAAP)           $ 383,519     $ 304,245     $ 1,284,786     $ 1,044,378  
                                     

    The following table presents a reconciliation of net cash provided by operating activities (GAAP) to Consolidated EBITDAX (non-GAAP) for the periods presented:

        Three months ended December 31,   Year ended December 31,
    (in thousands)     2024       2023       2024       2023  
        (unaudited)   (unaudited)
    Net cash provided by operating activities           $ 257,174     $ 233,734     $ 1,000,330     $ 812,956  
    Plus:                
    Interest expense             53,564       50,431       177,794       149,819  
    Organizational restructuring expenses             795       1,654       795       1,654  
    Current income tax (benefit) expense             (250 )     3,425       2,456       5,723  
    Net changes in operating assets and liabilities             79,711       11,285       127,830       71,444  
    General and administrative (transaction expenses)             (19 )     8,221       548       11,341  
    Settlements received for contingent consideration             —       311       —       1,813  
    Other, net             (7,456 )     (4,816 )     (24,967 )     (10,372 )
    Consolidated EBITDAX (non-GAAP)           $ 383,519     $ 304,245     $ 1,284,786     $ 1,044,378  
                                     

    Net Debt

    Net Debt is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as the face value of long-term debt plus any outstanding letters of credit, less cash and cash equivalents, where cash and cash equivalents are capped at $100 million when there are borrowings on the Senior Secured Credit Facility. Management believes Net Debt is useful to management and investors in determining the Company’s leverage position since the Company has the ability, and may decide, to use a portion of its cash and cash equivalents to reduce debt.

    Net Debt to Consolidated EBITDAX

    Net Debt to Consolidated EBITDAX is a non-GAAP financial measure defined in the Company’s Senior Secured Credit Facility as Net Debt divided by Consolidated EBITDAX for the previous four quarters, which requires various treatment of asset transaction impacts. Net Debt to Consolidated EBITDAX is used by the Company’s management for various purposes, including as a measure of operating performance, in presentations to its board of directors and as a basis for strategic planning and forecasting.

    PV-10

    PV-10 is a non-GAAP financial measure that is derived from the standardized measure of discounted future net cash flows, which is the most directly comparable GAAP financial measure. PV-10 is a computation of the standardized measure of discounted future net cash flows on a pre-tax basis. PV-10 is equal to the standardized measure of discounted future net cash flows at the applicable date, before deducting future income taxes, discounted at 10 percent. Management believes that the presentation of PV-10 is relevant and useful to investors because it presents the discounted future net cash flows attributable to the Company’s estimated proved reserves prior to taking into account future corporate income taxes, and it is a useful measure for evaluating the relative monetary significance of the Company’s proved oil, NGL and natural gas assets. Further, investors may utilize the measure as a basis for comparison of the relative size and value of proved reserves to other companies. The Company uses this measure when assessing the potential return on investment related to proved oil, NGL and natural gas assets. However, PV-10 is not a substitute for the standardized measure of discounted future net cash flows. The PV-10 measure and the standardized measure of discounted future net cash flows do not purport to present the fair value of the Company’s oil, NGL and natural gas reserves of the property.

    (in millions)   December 31, 2024
        (unaudited)
    Standardized measure of discounted future net cash flows           $ 4,215  
    Less: present value of future income taxes discounted at 10%             (295 )
    PV-10 (non-GAAP)           $ 4,510  

    Investor Contact:
    Ron Hagood
    918.858.5504
    ir@vitalenergy.com

    The MIL Network –

    February 20, 2025
  • MIL-OSI Security: Detroit Man Sentenced To Over Four Years in Federal Prison For Participating In Multi-State Pandemic Unemployment Insurance Fraud Scheme

    Source: Office of United States Attorneys

    DETROIT – A man from Detroit, Michigan was sentenced today for his role in a multi-state, million-dollar unemployment insurance fraud scheme aimed at defrauding the U.S. government and the states of Michigan, Pennsylvania, and Maryland, of funds earmarked for unemployment assistance during the COVID-19 pandemic, announced Acting United States Attorney Julie A. Beck.

    Joining in the announcement were Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Special Agent in Charge Charles Miller, Internal Revenue Service-Criminal Investigation, and Megan Howell, Acting Special Agent in Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

    Tracey Dotson, 49, was sentenced to 51 months in prison and ordered to pay more than $900,000 in restitution in the sentence handed down by United States District Judge Matthew F. Leitman.

    According to court records, Dotson and a co-defendant conspired to, and did, defraud the federal government and the states of Michigan, Pennsylvania, and Maryland of roughly $1 million in funds intended to support individuals who had lost their jobs during the COVID-19 pandemic. The pair committed their crimes through the use of interstate wires and the unauthorized possession and use of social security numbers and other means of identification belonging to other individuals.

    Dotson pleaded guilty to wire fraud and conspiracy to commit wire fraud in April 2024. Dotson and his co-defendant, using stolen personal identification, filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Pennsylvania, and Maryland in the names of other individuals without their knowledge or consent.   The defendants then received hundreds of Bank of America prepaid debit cards in the names of those individuals loaded with roughly $1 million in Pandemic Unemployment Assistance funds at addresses in Michigan and Pennsylvania. Dotson, his co-defendant, and their accomplices then successfully unloaded more than $930,000 from the cards via cash withdrawals and purchases that included high-end jewelry, designer fashion accessories by Gucci and Louis Vuitton, drugs, at least one vehicle, and at least one firearm.

    “Taxpayer unemployment assistance funds diverted to the pockets of criminals during the pandemic resulted in fewer resources that were available for those genuinely in need at that challenging time,” said Acting U.S. Attorney Julie Beck. “Our office is steadfast in its commitment to bringing those to justice who used a global health crisis as a means to illegally line their own pockets at the expense of taxpayers. “

    “This sentence underscores the FBI’s commitment to investigating complex financial crimes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “We will not tolerate the greed and selfish conduct demonstrated by those who chose to defraud the unemployment insurance system, especially when we faced an unprecedented global pandemic. The FBI and our federal partners remain steadfast in holding criminals accountable and protecting government assistance programs. The pandemic may be in our rearview mirrors, but our investigations continue to move forward in the name of justice.”

    “Individuals who commit such blatant unemployment insurance fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation.  “Tracey Dotson and his co-conspirator took advantage of a program intended to help those in need get through a devastating global pandemic, exposed personal identity information of many, and caused immeasurable hardship to innocent victims. IRS Criminal Investigation remains committed to the pursuit of pandemic fraud and identity theft, together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar conduct accountable.”

    “Tracey Dotson and his co-conspirator defrauded multiple state workforce agencies by using stolen identities to obtain unemployment insurance (UI) benefits. As a result, he stole vital taxpayer resources intended for unemployed American workers in dire need of UI benefits. Today’s sentencing affirms the Office of Inspector General’s commitment to work with our law enforcement partners to investigate and bring to justice those who exploit this critical benefit program,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    This case was prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan. The investigation was conducted jointly by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and Department of Labor, Office of Inspector General.

    MIL Security OSI –

    February 20, 2025
  • MIL-OSI Security: Financial TV News Analyst-Turned-Fugitive Agrees to Plead Guilty to Federal Charge for Conning Investors Out of Millions of Dollars

    Source: Office of United States Attorneys

    LOS ANGELES – A former San Gabriel Valley resident – who was a frequent guest on financial television news programs then became a fugitive from justice after being accused of scamming investors – has agreed to plead guilty to defrauding his victims out of at least $2.7 million, the Justice Department announced today.

    James Arthur McDonald Jr., 53, formerly of Arcadia, has agreed to plead guilty to one count of securities fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.

    McDonald has been in federal custody since June 2024, when he was arrested in a residence in Port Orchard, Washington, after being a fugitive since November 2021, when he failed to appear before the United States Securities and Exchange Commission (SEC) to testify after allegations arose that he had defrauded investors. 

    According to his plea agreement, at McDonald’s Washington state hideout, law enforcement found, among other things, a fake Washington, D.C., driver’s license bearing McDonald’s photograph and the name “Brian Thomas.”

    McDonald was the CEO and chief investment officer of two companies headquartered in Los Angeles: Hercules Investments LLC and Index Strategy Advisors Inc. (ISA). He frequently appeared as an analyst on the CNBC financial television news network.

    In late 2020, McDonald lost tens of millions of dollars of Hercules client money after adopting a risky short position that effectively bet against the health of the United States economy in the aftermath of the U.S. presidential election. McDonald projected that the COVID-19 pandemic and the election would result in major selloffs that would cause the stock market to drop. When the market decline didn’t occur, Hercules clients lost between $30 million and $40 million. By December 2020, Hercules clients were complaining to company employees about the losses in their accounts, according to court documents.

    In early 2021, McDonald solicited millions of dollars’ worth of funds from investors in the form of a purported capital raise for Hercules but misrepresented how the funds would be used and failed to disclose the massive losses Hercules previously sustained. As part of the capital raise, McDonald obtained $675,000 in investment funds from one victim group on March 9, 2021. He misappropriated most of those funds in various ways, including spending $174,610 at a Porsche dealership and transferring $109,512 to the landlord of a home McDonald was renting in Arcadia.

    McDonald also defrauded clients of ISA, his other firm, using less than half of the approximately $3.6 million he raised for trading purposes. Instead, McDonald frequently commingled ISA client funds with funds from his personal bank account, which he used to purchase luxury cars and to pay rent on his home, personal credit card charges, and Hercules operating expenses and to make Ponzi-like payments to ISA clients — that is, paying some ISA clients using funds from other clients. 

    In total, McDonald caused losses of between approximately $2,745,892 and approximately $3,025,892, according to his plea agreement.

    The FBI and IRS Criminal Investigation are investigating this matter.

    In September 2022, the SEC filed a civil complaint charging McDonald and Hercules with violations of federal securities law. In April 2024, United States District Judge Percy Anderson found McDonald and Hercules liable and ordered that they pay several million dollars in disgorgement and civil penalties.

    Assistant United States Attorneys Alexander B. Schwab and Nisha Chandran of the Corporate and Securities Fraud Strike Force are prosecuting this case.

    MIL Security OSI –

    February 20, 2025
  • MIL-OSI: “Is mediocrity good enough?” – ZimCal asks Medallion Financial stockholders

    Source: GlobeNewswire (MIL-OSI)

    • 4Q24 Medallion Bank earnings continue disturbing downward trend
    • Consolidated Medallion Financial Corp earnings have not yet been released
    • Due to lower Bank earnings, Medallion Financial may struggle to pay dividends, operating expenses and a possible SEC penalty with existing cash
    • Medallion Financial and Andrew Murstein face a looming SEC settlement
    • Despite predictable down-trending results, executives were paid record compensation in 2023
    • ZimCal believes that Medallion Financial Corp has huge upside with the right governance and leadership
    • ZimCal previously provided MFIN with versions of its “5 Steps to Improvement” plan that anticipated current risks and negative trends and urges management to take decisive, proactive action

    Full analysis with graphs can be accessed here.

    MINNEAPOLIS, Feb. 19, 2025 (GLOBE NEWSWIRE) —

    Medallion Bank (the “Bank”) recently released its 4Q24 earnings. Medallion Financial Corp (“MFIN” or the “Company”) will be releasing consolidated earnings shortly, along with important updates on a possible SEC settlement involving fraud and touting charges against Andrew Murstein, President and Board Member of MFIN, that has cost shareholders an estimated $8 million in legal fees to defend.

    The Bank represents approximately 95%i of MFIN’s consolidated revenues. On almost all metrics, financial performance is down. Frustratingly, MFIN has lagged in areas that ZimCal Asset Management LLC (“ZimCal”, “We”, “Our”) predicted almost 16 months ago.

    ZimCal remains one of MFIN’s largest investors and has been invested for 4 years. Had MFIN and its board listened to us in 2023 and taken proactive steps to mitigate risk, enhance its operations, resolve the SEC complaint and numerous other detailed suggestions ZimCal offered to increase enterprise value, we believe MFIN would be trading at a substantial premium to its current value.  

    Against the backdrop of healthy consumer data, and booming stock and credit markets, we ask MFIN stockholders – are you happy with such glaring underperformance or do you think the Company can do better? Are you satisfied with MFIN’s President being sued by the SEC for alleged fraud and yet earning tens of millions in compensation even as MFIN’s stock is down, and its unadjusted and core returns are at their worst in over 4 yearsii?  

    We will withhold our full analysis until MFIN’s earnings are released, but we note a few key points about the Bank’s earnings – divided into positives and negatives.

    Full analysis with graphs can be accessed here.

    POSITIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Asset growth is flat
    If this is driven by a reluctance on the Bank’s part to lower underwriting standards simply to increase growth this is positive. Chasing returns by recklessly opening the credit box would be a mistake. If this is driven by constraints on lending because the Bank’s capital ratio of 15.6% is just above the 15% mandatory minimum, then this is problematic. For similar reasons, we support a robust loan origination and sale or securitization strategy to augment interest income, but we think the 1Q25 loan sales are problematic if they are driven by an effort to juice near-term earnings and avoid breaching the Bank’s minimum leverage ratio.

    2. Allowance for credit losses (ACL) has been increased to cover future losses, driven by Recreation ACL
    ACL for Recreation loans specifically increased to 5.00% at 4Q24 from 4.31% at 4Q23. Since 2024, charge-offs have also increased, indicating an effort by the Bank to better recognize the threats of future charge-offs and provision accordingly. We felt that the Bank under-provisioned in the last crisis to artificially boost earnings; we are supportive of their decision to avoid doing so now.

    NEGATIVES IN 4Q24 MEDALLION BANK EARNINGS

    1. Consumer credit quality continues to decline, driven by Recreation
    Recreation loans made up ~65% of total loans at 4Q24. Subprime Recreation was an estimated 35% of Recreation loans or ~$550 million at 4Q24. This borrower demographic will be more stressed by higher for longer rates, inflation and a potentially softening labor market. Despite the Bank’s increased loss allowances, we remain concerned about quarterly consumer charge-offs, which are now at their highest since 2010 and well above the most recent peak in 2019 (Figure 1 below or here). We are concerned that this could get worse. We have beaten our head against the wall for 16 months urging MFIN to proactively mitigate these risks (see letter here from October 2023) but without success.

    2. Net Interest Margin (NIM) continues to be pressured by expensive funding costs
    Quarterly NIM declined to 8.28% at 4Q24 from 8.75% a year ago at 4Q23. This is the lowest quarterly NIM since 2019 when we started tracking this for the Bank. This was mainly driven by higher funding costs and an inability to materially raise loan yields. As predicted, the Bank’s cost of funds (almost entirely CD deposits) continued to trend higher and reached an estimated 3.95% at 4Q24iii. We have noted that a Bank CD portfolio with a 1.8 year weighted average maturity and 36% of CDs maturing in 2024 as of 12/31/23iv, would have rates that would lag benchmark rate increases on the way up (boosting NIM) but would also lag benchmarks on the way down (hurting NIM). We have tracked brokered CD rates through one of the largest platforms since September 2024 and note that while short-term CD (less than 1-year) rates are down, 1, 2 and 5-year CD rates are UP since 09/30/24 and 12/31/24. (See Figure 2 below or here). This shows that NIM pressure will persist.

    3. Earnings have declined YoY despite being boosted by a “noisy” allowance release
    Core net earnings available to common stockholders were $10.3 million in 4Q24 after eliminating $3.9 million in provision reversals and $900,000 in non-core Taxi Medallion recoveries (adjustment to earnings is after taxes). Unadjusted earnings were $14 million. If the Bank were a standalone entity, this would be mediocre but manageable. But when you pile on high holding company expenses and debt service, this is unsustainable. The Bank paid a dividend of $6MM to the holding company in 4Q24 leaving only $4.3MM in core earnings to boost capital levels and fund future loan growth. As we noted in our last earnings commentary, quarterly earnings for MFIN in 2024 are the lowest they have been on an unadjusted and adjusted basis since the last stages of the Taxi Medallion implosion in 2020. Bank ROAA and core ROAA (excluding non-core Taxi Medallion recoveries) we calculated at 2.50% and 1.65% respectively at 4Q24. This core ROAA is dangerously low for a consumer lender and leaves little room for error. Lowered earnings are one of the reasons the Bank’s parent company (MFIN) had to borrow $10 million in 2024 to pay $9.5 million in dividends and share buybacks through 3Q24. The Bank continues to “carry” the weight of its parent, which is reliant on the Bank for upstreamed dividends to fund its expenses and pay its expensive debt.

    We believe that Medallion Bank (and MFIN) have tremendous upside but only with the right Board and leadership. We encourage investors to review www.restoretheshine.com for details on the 2024 proxy contest to replace 2 incumbent directors, where, despite insider ownership that gave MFIN a 44% leadv, ZimCal still earned 22% of stockholder votes with over 1 in 4 stockholders voting against MFIN’s compensation plan. We believe that MFIN’s board of directors (the “Board”) has shown weak governance and is beholden to the Murstein family rather than to all stockholdersvi. We also believe that MFIN’s management team is overpaid and must be improvedvii. We believe that it is ludicrous to pay MFIN’s President $6.5 million or 19% of MFIN’s core earningsviii at FYE23, significantly higher than all but one of MFIN’s self-selected peersix and comparable to the highest paid Wall Street hedge fund managers. Until we see positive changes, we will work to hold MFIN’s Board and management team accountable and believe the potential for the Company is extraordinary.

    Visit www.restoretheshine.com for more information or read our 5 Steps to Improvement.
    ZimCal will issue ongoing press releases with updates and details on its plan to “Restore the Shine” to Medallion Financial Corp.

    About ZimCal Asset Management, LLC
    ZimCal Asset Management is an alternative investment firm focused primarily on niche, illiquid and complex credit investment opportunities.

    ZimCal Asset Management partners with both healthy and distressed borrowers or issuers and provides customized solutions that meet their unique needs and circumstances. Over the last 15 years, the founder of ZimCal Asset Management has developed a specialization investing in FDIC-insured institutions and has partnered with over 120 bank lenders through investments on both sides of the balance sheet.

    ZimCal usually works in collaboration with bank leadership teams if required, but on very rare occasions, must insert itself more forcefully if it believes that leadership is underwhelming and threatens to undermine stakeholder investments. ZimCal prides itself on performing extensive, rigorous financial analysis and research to fully understand the risks of any investment.

    Important Information and Disclaimer
    ZimCal Asset Management, LLC, and its affiliates BIMIZCI Fund, LLC, Warnke Investments LLC and Stephen Hodges (collectively, “ZimCal” or “we”), are, directly or indirectly, owners of securities of Medallion Financial Corp. (the “Company”). ZimCal currently has combined investment exposure of $15,604,000 million to the Company, comprised of $15 million par value of Trust Preferred Securities (backed by the Company’s issued debt), and 76,122 shares of the Company. We are not currently engaged in any solicitation of proxies from stockholders of the Company. ZimCal intends to monitor the performance and corporate governance of the Company, as well as the actions of the Company’s management and board. As ZimCal deems necessary, ZimCal will assert its stockholder rights.

    Except as otherwise set forth herein, the views expressed reflect ZimCal’s opinions and are based on publicly available information with respect to the Company. We recognize that there may be confidential information in the possession of the Company that could lead it or others to disagree with our conclusions. ZimCal reserves the right to change any of its opinions expressed herein at any time as it deems appropriate and disclaims any obligation to notify the market or any other party of any such change, except as required by law. We disclaim any obligation to update the information or opinions contained herein.

    The information herein is being provided merely as information and is not intended to be, nor should it be construed as, an offer to sell or a solicitation of an offer to buy any security.

    Some of the information herein may contain forward-looking statements. All statements contained herein that are not clearly historical in nature or that depend on future events are forward-looking. The words “anticipate,” “believe,” “expect,” “potential,” “could,” “opportunity,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. There can be no assurance that any forward-looking statements will prove to be accurate and therefore actual results could differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. In light of the significant uncertainties inherent in forward-looking statements, the inclusion of such information should not be regarded as a representation as to future results or that the objectives and strategic initiatives expressed or implied by such forward-looking statements will be achieved.


    i Source: MFIN 10K/Qs
    ii See www.restoretheshine.com and MFIN 10K/10Qs
    iii Source: Medallion Bank 4Q24 8K. This is based on the Bank’s annual average CD rate of 3.57% at 4Q24.
    iv Source; MFIN 2024 10K
    v Source: MFIN DEF14A. Insider ownership derived from recent disclosures by MFIN. Insiders owned ~7 million shares and total votes cast were 16 million. We have assumed that all insiders voted and voted against ZimCal. See here for full SEC filing on stockholder meeting voting results.
    vi See www.restoretheshine.com for why we believe the Board is not fulfilling its fiduciary responsibilities to stockholders. Also see Section 1 and Section 2 of the plan for further examples.
    vii See www.restoretheshine.com for why we believe Management, specifically Andrew Murstein, is overpaid relative to bank peers, proxy peers and in terms of absolute performance. Also see Section 1 of the plan for further examples.
    viii See www.restoretheshine.com for comparisons to larger, top performing banks and proxy peers selected by MFIN
    ix See viii above.

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Liberty Northwest Bancorp, Inc. Reports 2024 Fourth Quarter and Full Year Financial Results

    Source: GlobeNewswire (MIL-OSI)

    2024 Fourth Quarter Financial Highlights:

    • Total assets were $186.9 million at year end.
    • Net interest income of $1.00 million for the fourth quarter.
    • Net interest margin of 2.30% for the fourth quarter and 2.36% for the year.
    • Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million a year ago, with non-interest bearing demand deposits representing 25% of total deposits.
    • Net loans were $141.6 million at December 31, 2024, compared to $142.8 million a year ago.
    • Asset quality remains pristine.
    • Tangible book value per share increased to $7.80 at year end, compared to $7.58 a year ago.

    POULSBO, Wash., Feb. 19, 2025 (GLOBE NEWSWIRE) — Liberty Northwest Bancorp, Inc. (OTCQX: LBNW) (the “Company”) and its wholly-owned subsidiary Liberty Bank today announced a net loss of $43 thousand for the fourth quarter ended December 31, 2024. This compared to net income of $25 thousand for the third quarter ended September 30, 2024, and $1 thousand for the fourth quarter ended December 31, 2023. For the twelve months ended December 31, 2024, net income was $3 thousand, compared to $35 thousand the same period in 2023.

    Total assets were $186.9 million as of December 31, 2024, compared to $184.7 million at December 31, 2023. Net loans totaled $141.6 million as of December 31, 2024, a 1% increase compared to $140.0 million at September 30, 2024, and a 1% decrease compared to $142.8 million a year ago. Loan demand was muted during the quarter largely due to the elevated interest rate environment.

    Asset quality remained pristine during the fourth quarter. The allowance for credit losses totaled $1.16 million as of December 31, 2024, and was 0.81% of total loans outstanding. The Company recorded net loan recoveries of $31 thousand during the quarter. The Company has one non-performing loan of $235 thousand as of December 31, 2024.

    Due to strong credit quality metrics and muted loan growth, the Company recorded a $40 thousand reversal to its provision for credit losses in the fourth quarter of 2024. This compared to a $95 thousand reversal to its provision for credit losses in the third quarter of 2024 and a $60 thousand reversal to its provision for credit losses in the fourth quarter of 2023.

    Total deposits increased 3% to $145.8 million at December 31, 2024, compared to $142.2 million at December 31, 2023, and decreased modestly compared to $146.4 million three months earlier. Non-interest bearing demand accounts represented 25%, interest bearing demand represented 30%, money market and savings accounts comprised 18%, and certificates of deposit made up 27% of the total deposit portfolio at December 31, 2024.

    “The vibrant Pacific Northwest markets that we operate in continue to fuel our deposit base and loan pipeline,” said Rick Darrow, Liberty Northwest Bancorp, Inc. President and Chief Executive Officer. “During the fourth quarter, loan growth moderated, as we remain selective with the loans we are putting on the balance sheet. As we look to 2025, we anticipate an increase in growth opportunities, especially if interest rates continue to stabilize.

    “The challenging interest rate environment continues to impact net interest income growth with higher interest expense on deposits and borrowings, which affected our operating performance for the fourth quarter of 2024,” said Darrow. Net interest income, before the provision for loan losses, was $1.00 million for the fourth quarter of 2024, compared to $1.07 million in the fourth quarter of 2023. For the year, net interest income was $4.11 million, compared to $4.44 million for 2023.

    “While our yields on earning assets remained stable during the quarter, they were more than offset by the increase in cost of funds, resulting in net interest margin compression during the quarter,” said Darrow. The Company’s net interest margin was 2.30% for the fourth quarter of 2024, compared to 2.37% for the preceding quarter, and 2.48% for the fourth quarter of 2023. For the full year 2024, the net interest margin was 2.36%, compared to 2.59% for 2023.

    Total non-interest income increased 6% to $82 thousand for the fourth quarter of 2024, compared to $78 thousand for the fourth quarter a year ago. For the year, non-interest income was $308 thousand, compared to $449 thousand for 2023. The decrease in 2024 compared to the prior year was primarily due to higher referral fee income earned in 2023.

    Total noninterest expense was $1.18 million for the fourth quarter of 2024, a decrease of $43 thousand, or 3%, from the fourth quarter a year ago. Compensation and benefits costs decreased by $55 thousand, or 8%, over the year ago quarter, while occupancy costs decreased by $51 thousand, or 34% from the same quarter a year ago. For the year, total noninterest expense decreased $275 thousand, or 6%, to $4.68 million, over 2023.

    “We remain focused on enhancing revenue generation and driving cost efficiencies to improve our operational effectiveness,” said Darrow. “Our operating performance is expected to continue to improve, as we improve our margin, while keeping operating expenses in line. We are well positioned for continued growth in our core business operations and remain focused on creating value for all of our customers, employees and shareholders.”

    Capital ratios continue to exceed regulatory requirements, with a total risk-based capital ratio at 15.81% at December 31, 2024, substantially above well-capitalized regulatory requirements. The tangible book value per share was $7.80 at year end, compared to $7.58 a year earlier.

    Near the end of the second quarter of 2024, the Company completed the issuance of $1.2 million of Preferred Stock. Under the terms of the transaction, the Preferred Stock will convert to Common Stock within a 2 year time period.

    “We are deploying the proceeds from this offering to further strengthen our capital position and to support continued loan growth in our vibrant Pacific Northwest markets,” said Darrow.

    About Liberty Northwest Bancorp, Inc.
    Liberty Northwest Bancorp, Inc. is the bank holding company for Liberty Bank, a commercial bank chartered in the State of Washington. The Bank began operations June 11, 2009, and operates a full-service branch in Poulsbo, WA. The Bank provides loan and deposit services to predominantly small and middle-sized businesses and individuals in and around Kitsap and King counties. The Bank is subject to regulation by the State of Washington Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). For more information, please visit www.libertybanknw.com. Liberty Northwest Bancorp, Inc. (OTCQX: LBNW), qualified to trade on the OTCQX® Best Market in June 2022. For information related to the trading of LBNW, please visit www.otcmarkets.com.

    For further discussion, please contact:
    Rick Darrow, Chief Executive Officer | 360-394-4750

    Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Liberty Northwest Bancorp, Inc.’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Liberty Northwest Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

    STATEMENTS OF INCOME (Unaudited)                                
    (Dollars in thousands)                                
          Quarter Ended Dec 31, 2024   Quarter Ended Sept 30, 2024   Three Month Change   Quarter Ended Dec 31, 2023   Quarter over Quarter – One Year Change   Year to Date Dec 31, 2024   Year to Date Dec 30, 2023   One Year Change
    Interest Income                                
      Loans   $ 1,932     $ 1,994     -3 %   $ 1,890     2 %   $ 7,807     $ 7,173     9 %
      Interest bearing deposits in banks     142       83     70 %     101     41 %     365       323     13 %
      Securities     108       114     -5 %     140     -23 %     461       483     -5 %
      Total interest income     2,182       2,192     -0 %     2,112     3 %     8,632       7,979     8 %
                                       
    Interest Expense                                
      Deposits     928       903     3 %     656     41 %     3,298       2,141     54 %
      Other Borrowings     252       283     -11 %     384     -34 %     1,226       1,396     -12 %
      Total interest expense     1,179       1,186     -1 %     1,040     13 %     4,524       3,537     28 %
                                       
    Net Interest Income     1,003       1,005     -0 %     1,072     -7 %     4,109       4,442     -8 %
      Provision for Loan Losses     (40 )     (95 )   -58 %     (60 )   -33 %     (265 )     (105 )   152 %
    Net interest income after provision for loan losses     1,043       1,100     -5 %     1,132     -8 %     4,374       4,547     -4 %
                                       
    Non-Interest Income                                
      Service charges on deposit accounts     28       28     -0 %     17     61 %     104       67     55 %
      Other non-interest income     55       46     19 %     61     -10 %     204       382     -47 %
      Total non-interest income     82       74     12 %     78     6 %     308       449     -31 %
                                       
    Non-Interest Expense                                
      Salaries and employee benefits     650       668     -3 %     705     -8 %     2,596       2,854     -9 %
      Occupancy and equipment expenses     100       88     14 %     151     -34 %     429       595     -28 %
      Other operating expenses     429       387     11 %     367     17 %     1,652       1,503     10 %
      Total non-interest expenses     1,180       1,143     3 %     1,223     -3 %     4,677       4,952     -6 %
                                       
    Net Income Before Income Tax     (55 )     31     -275 %     2     -3027 %     4       44     -90 %
    Provision for Income Tax     (12 )     7     -275 %     0     -3027 %     1       9     -90 %
    Net Income     (43 )   $ 25     -275 %   $ 1     -3027 %   $ 3     $ 35     -90 %
                                       
    BALANCE SHEETS (Unaudited)                    
    (Dollars in thousands)                    
          Dec 31, 2024   Sept 30, 2024   Three Month Change   Dec 31, 2023   One Year Change
    Assets                    
      Cash and due from Banks   $ 1,655     $ 2,408     -31 %   $ 1,817     -9 %
      Interest bearing deposits in banks     14,341       11,262     27 %     7,896     82 %
      Securities     20,586       21,225     -3 %     23,034     -11 %
                           
      Loans     142,720       141,206     1 %     143,913     -1 %
      Allowance for loan losses     (1,158 )     (1,167 )   -1 %     (1,150 )   1 %
      Net Loans     141,561       140,038     1 %     142,763     -1 %
                           
      Premises and fixed assets     6,101       6,161     -1 %     6,418     -5 %
      Accrued Interest receivable     681       668     2 %     765     -11 %
      Intangible assets     11       19     -43 %     39     -72 %
      Other assets     1,949       2,262     21 %     1,992     -2 %
                           
      Total Assets   $ 186,884     $ 183,678     2 %   $ 184,724     1 %
                           
                           
    Liabilities and Shareholders’ Equity                    
      Deposits                    
      Demand, non-interest bearing   $ 35,845     $ 39,669     -10 %   $ 42,803     -16 %
      Interest Bearing Demand     44,149       40,764     8 %     23,528     88 %
      Money Market and Savings     26,495       27,419     -3 %     26,667     -1 %
      Certificates of Deposit     39,345       38,507     2 %     49,200     -20 %
      Total Deposits     145,833       146,359     -0 %     142,198     3 %
                           
      Total Borrowing     26,461       22,454     18 %     29,430     -10 %
      Accrued interest payable     173       238     -27 %     335     -48 %
      Other liabilities     286       704     133 %     214     34 %
      Total Liabilities     172,753       169,756     2 %     172,177     0 %
                           
      Shareholders’ Equity                    
      Preferred Stock     1,242       1,242     0 %       ***
      Common Stock     1,656       1,650     0 %     1,650     0 %
      Additional paid in capital     13,149       13,138     0 %     13,108     0 %
      Retained Earnings     (1,490 )     (1,447 )   -3 %     (1,493 )   0 %
      Other Comprehensive Income     (426 )     (661 )   36 %     (718 )   41 %
      Total Shareholders’ Equity     14,131       13,922     1 %     12,547     13 %
      Total Liabilities and Shareholders’ Equity   $ 186,884     $ 183,678     2 %   $ 184,724     1 %
       
            Quarter Ended Dec 31, 2024   Quarter Ended Sept 30, 2024   Quarter Ended Dec 31, 2023   YTD 2024   YTD 2023  
    Financial Ratios                        
      Return on Average Assets     -0.09 %     0.06 %     0.00 %     0.00 %     0.02 %  
      Return on Average Equity     -1.23 %     0.70 %     0.03 %     0.03 %     0.28 %  
      Efficiency Ratio     108.7 %     105.9 %     106.4 %     105.9 %     101.2 %  
      Net Interest Margin     2.30 %     2.37 %     2.48 %     2.36 %     2.59 %  
      Loan to Deposits     97.9 %     96.5 %     101.2 %          
                               
      Tangible Book Value per Share $ 7.80     $ 7.67     $ 7.58            
      Book Value per Share   $ 7.81     $ 7.68     $ 7.60            
      Earnings per Share   $ (0.03 )   $ 0.01     $ –     $ 0.03     $ 0.02    
                               
      Asset Quality                        
      Net Loan Charge-offs (recoveries) $ (31 )   $ 4     $ –            
      Nonperforming Loans   $ 235     $ 235     $ –            
      Nonperforming Assets to Total Assets   0.13 %     0.13 %     0.00 %          
      Allowance for Loan Losses to Total Loans   0.81 %     0.83 %     0.80 %          
      Other Real Estate Owned   –       –       –            
                               
      CAPITAL (Bank only)                      
      Tier 1 leverage ratio     9.98 %     10.23 %     9.56 %          
      Tier 1 risk-based capital ratio   14.87 %     15.00 %     14.16 %          
      Total risk based capital ratio   15.81 %     15.97 %     15.09 %          
                               

    The MIL Network –

    February 20, 2025
  • MIL-OSI New Zealand: Council’s value for money programme gains momentum

    Source: Auckland Council

    Auckland Council has recorded $43.2 million in savings so far this year – two-thirds of the annual savings target of $66 million.

    The council’s savings initiative is part of an ongoing programme to ensure ratepayers get value for money and cost-effectiveness across the organisation, through clear targets set in the Long-term Plan.

    Council savings is supported by Value for Money reviews and a new Better Value Projects initiative which will ensure investments in projects are good value for money.

    Through the mayoral proposal for the Annual Plan 2025/2026, Mayor Wayne Brown sought further measures on how council procures and effectively spends ratepayer money on projects.

    The new Better Value Projects programme was presented at this week’s Revenue, Expenditure and Value Committee.

    “This is very positive progress. We have a responsibility to ensure ratepayers’ money is used efficiently – we need to spend council money like it is our own,” says Mayor Brown.

    “I’ve always been clear that we need to stop wasting money. That’s why as a council we need to follow basic rules like setting a maximum price and having a clear definition of the problem you’re trying to solve, before spending ratepayer money. 

    “We need to consistently deliver every project for Aucklanders effectively and affordably.  I’m pleased to see this piece of work coming to life – as a result, Aucklanders can be more assured that council projects are ensuring best value for money.”

    Better Value Projects identifies 10 areas that will make the biggest difference to improving value ratepayers receive from the council procuring and delivering capital projects, as well as some operational programmes.

    This includes increased use of standard designs; setting maximum prices; added rigour to scoping and design work; additional problem definition and value assessments; and careful selection of providers, across location and performance measures.

    Over $150 million savings this year
    Revenue, Expenditure and Value Committee chair Deputy Mayor Desley Simpson says in addition to Better Value Projects, the council has made great progress on savings, with $43.2 million already achieved.

    The $66 million savings target this financial year builds on ongoing savings of $90 million per year, totalling over $150 million savings this year.

    “We are looking at every opportunity to ensure cost-efficiency, and it’s paying off. This work directly rewards our ratepayers, helping rates to remain affordable and ensuring every dollar goes as far as it can,” says Cr Simpson.

    “Achieving 65 per cent of our 2024/2025 savings target so far is a positive sign that we’re striving hard to deliver on our commitments. Alongside savings, we’re continuing additional programmes to deliver value for money to ratepayers.”

    All savings are directly used to keep rates and debt down. For every $25 million of planned savings in the council’s budget, rates rise of around 1 per cent is avoided. 

    Value for Money reviews
    The Revenue, Value and Expenditure Committee is also overseeing the council’s ongoing programme of Value for Money reviews.

    The reviews approved by the committee this week mean 10 Value for Money reviews will have been undertaken this council term, and in total 20 reviews since the start of the programme in 2017.

    Under Section 17a of the Local Government Act, the council’s Value for Money team works across the council group to consider current services and recommend new ways to deliver, while optimising council’s investment in assets, achieving greater integration and cost-effectiveness.

    “Continuing to build our savings and value for money work, alongside new options through Better Value Projects, is one way the council demonstrates its efficiency and its focus on delivering value for ratepayers,” says Cr Simpson.

    MIL OSI New Zealand News –

    February 20, 2025
  • MIL-OSI United Nations: Experts of the Committee on Economic, Social and Cultural Rights Welcome the Philippines’ Human Rights Commitments , Ask about Attacks on Human Rights Defenders, Indigenous Land Rights and Drug Use Policies

    Source: United Nations – Geneva

    The Committee on Economic, Social and Cultural Rights today concluded its review of the seventh periodic report of the Philippines, with Committee Experts welcoming the State’s human rights plans and commitments, and asking about attacks on human rights defenders, indigenous land rights and drug use policies.

    Asraf Ally Caunhye, Committee Expert and Leader of the Taskforce for the Philippines, in opening remarks, welcomed the State party’s human rights plans and commitments.

    Hesaid, however, that there had been 305 killings of human rights defenders in the Philippines since the last review. The Philippines ranked third globally for killings of human rights defenders. What measures were in place to ensure that those responsible for these crimes were prosecuted and sanctioned?

    Mr. Caunhye said indigenous peoples continued to face violations of their economic, social and cultural rights through the destruction of ancestral lands by extractive industries approved by the State. How would the State party protect the rights of indigenous peoples?

    Ludovic Hennebel, Committee Vice-Chair and Member of the Taskforce for the Philippines, asked about plans to decriminalise drugs for personal use and implement alternatives to imprisonment for drug users. What measures were in place to put an end to the “war on drugs” and to provide reparations to victims?

    Rosemarie G. Edillon, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, introducing the report, said economic development, resilience building, and poverty reduction were central to the Government’s human rights agenda. From 2015 to 2023, the poverty rate dropped from 23.5 to 15.5 per cent of the population. The State was providing social protection to the most vulnerable and disadvantaged.

    There was no State policy to attack human rights defenders, the delegation said. There were remedies to address violations of the right to life, and freedom of association and assembly.

    On indigenous land rights, the delegation said the Indigenous Peoples’ Rights Act protected designated ancestral grounds and cultural heritage as “no-go zones” for development projects and emphasised free, prior and informed consent for all such projects. The Government was mapping and registering indigenous cultural assets to protect them.

    Regarding drug policies, the delegation said the Government was adopting a humanitarian approach to drug use and rehabilitation. Many drug users were treated in communities rather than in rehabilitation centres. Persons who participated in rehabilitation programmes were removed from criminal offender lists.

    In concluding remarks, Mr. Caunhye said discussions had brought to light issues that needed to be addressed to strengthen the implementation of economic, social and cultural rights in the Philippines. This information would inform the Committee’s concluding observations.

    Ms. Edillon, in her concluding remarks, said the State party was united in its goal of advancing economic, social and cultural rights. It would continue with actions that would create change and realise the economic, social and cultural rights of all citizens.

    In her concluding remarks, Laura-Maria Craciunean-Tatu, Committee Chair, thanked the delegation for participating in the dialogue and for providing comprehensive answers.

    The delegation of the Philippines was comprised of representatives from the National Security Council; the National Commission on Muslim Filipinos; the National Commission on Indigenous Peoples; the National Council on Disability Affairs; the Philippine National Police; the Department of Health; the Presidential Human Rights Committee Secretariat; the Dangerous Drugs Board; the Department of Justice; the Department of Health; the National Economic and Development Authority; the Philippine Drug Enforcement Agency; the Department of Education; the Department of Labour and Employment; the Department of Social Welfare and Development; the Department of Foreign Affairs; and the Permanent Mission of the Philippines to the United Nations Office at Geneva.

    The Committee’s seventy-seventh session is being held until 28 February 2025. All documents relating to the Committee’s work, including reports submitted by States parties, can be found on the session’s webpage . Webcasts of the meetings of the session can be found here , and meetings summaries can be found here .

    The Committee will next meet in public at 5:30 p.m. on Friday, 28 February, to close its seventy-seventh session.

    Report.

    The Committee has before it the seventh periodic report of the Philippines (E/C.12/PHL/7).

    Presentation of Report

    ROSEMARIE G. EDILLON, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, said that through the Philippine Development Plan, which she led, the Government aimed to enable and empower every Philippine citizen to achieve a comfortable lifestyle and a secure future. The 1987 Constitution served as a firm foundation for the protection and promotion of economic, social and cultural rights. This foundation was reinforced by laws, policies and programmes that supported workers, promoted equitable economic participation, and provided social protection.

    The Government had put in place a plan for economic and social transformation that accelerated economic and social recovery from the COVID-19 pandemic toward a prosperous, inclusive and resilient society and achievement of the Sustainable Development Goals. Economic development, resilience building, and poverty reduction were central to the Government’s human rights agenda. From 2015 to 2023, the poverty rate dropped from 23.5 per cent to 15.5 per cent of the population. The State had been employing a multi-dimensional strategy to reduce poverty, expanding the economic pie, facilitating access by the poor to the drivers of economic growth, and providing social protection to the most vulnerable and disadvantaged. It had broad-based programmes like the conditional cash transfer programme, which benefitted over 4.4 million households. Beneficiaries were also covered by other social development programmes.

    The labour market had made a strong recovery after the pandemic. Employment figures were favourable, but there was much volatility and uncertainty in domestic and external fronts. For this reason, Congress had passed legislation that mandated a 10-year labour market development plan, which promoted a dynamic, efficient and inclusive labour market environment.

    Legislative measures had been enacted to institutionalise and expand social protection. In healthcare, the universal health care law ensured automatic PhilHealth coverage for all citizens. Family planning initiatives had prevented an estimated 774,000 unsafe abortions and 1,400 maternal deaths annually. The Mental Health Act expanded services to ensure informed consent in treatment, prohibit shackling, and provide culturally sensitive care. Ongoing efforts focused on breaking barriers such as attitudinal biases, inadequate modifications in public spaces, and employment challenges faced by persons with disabilities.

    Following disruptions caused by the pandemic, the Department of Education launched the basic education development plan 2030 and the learning recovery continuity plan to reverse learning loss. Enrolment had rebounded to 28.5 million learners in the 2022–2023 school year, surpassing pre-pandemic levels. The Government was also strengthening access to special education through policies like Department of Education order no. 44, which provided clear guidance for implementing programmes tailored for learners with disabilities.

    Free, prior and informed consent was a cornerstone of the State’s indigenous peoples’ rights. Although challenges persisted in its effective enforcement, the Philippines continued to collaborate with key stakeholders and communities to ensure that indigenous rights and sustainable development initiatives were effectively upheld. It continued to promote and safeguard the cultural integrity of indigenous peoples by conducting initiatives that highlighted traditional knowledge, practices and crafts.

    Building on these initiatives, the Government, in collaboration with civil society, had launched the fourth Philippine human rights plan, a comprehensive roadmap for protecting and promoting human rights. Its second thematic chapter focused on the country’s commitment to the Covenant, integrating human rights into national development efforts and prioritising marginalised communities. The plan was aligned with the Philippine Development Plan 2023-2028 and the Sustainable Development Goals.

    The Philippines reaffirmed its unwavering commitment to the Covenant and its principles. The dialogue with the Committee was an opportunity for introspection and growth. The Committee’s feedback and recommendations would serve as a valuable guide as the State strived to build a society where every citizen could progressively realise their economic, social and cultural rights; and no one was left behind.

    Questions by Committee Experts

    ASRAF ALLY CAUNHYE, Committee Expert and Country Rapporteur, asked about measures taken to incorporate the Covenant into the domestic legal system and to ensure the primacy of Covenant rights. In which court cases had Covenant rights been invoked? The Committee welcomed the State party’s human rights plans and commitments. What steps had been taken to ratify the Optional Protocol? 

    What system was in place to ensure that the judiciary was free from political influence? There had been 305 killings of human rights defenders since the last review. The Philippines ranked third globally for killings of human rights defenders. The existing legal institution was reportedly unable to prevent the red-tagging and killing of human rights defenders, including persons from indigenous communities and minority groups. What measures were in place to ensure that those responsible for these crimes were prosecuted and sanctioned?

    How did the Government prevent the abusive use of the Anti-Terrorism Act to restrict the activities of human rights defenders? What had barred the enactment of the bills on human rights defenders and the Human Rights Charter? How would the national human rights institution be enabled to function independently in accordance with the Paris Principles?

    Indigenous peoples continued to face violations of their economic, social and cultural rights through the destruction of ancestral lands. They were being deprived of their land management and food systems by extractive industries approved by the State. How would the State party protect the rights of indigenous peoples? What measures were in place to ensure that the National Commission on Indigenous Peoples expedited the issuance of land titles?

    What steps had been taken to ensure that free, prior and informed consent was obtained for extractive projects? What progress had been made in developing a national action plan on business and human rights? How did the State ensure that enterprises exercised due diligence when carrying out extractive activities and provided reparations for indigenous peoples affected by such activities?

    What measures were in place to implement the State’s commitments under the Paris Agreement? What resources had been allocated to addressing climate change? How was the State party addressing environmental pollution caused by extractive and logging activities?

    Despite a decline in poverty levels, 18 per cent of the population lived below the poverty line. Prevailing inequality in wealth remained high. The top 10 per cent of the population earned 45 per cent of gross national income, while the bottom 50 per cent earned only around four per cent. What measures would the State party take to eradicate poverty and support households living in poverty, rationalise fiscal policy, and introduce a progressive tax base that increased taxes for the wealthiest?

    Corruption was reportedly rampant in the police, the judiciary and other State institutions. What measures were in place to combat corruption? Were there cases in which politicians had been sentenced for corruption offences? Were there measures to allow citizens to access information held by Government bodies? Would the State party set up an anti-corruption commission or court?

    There was no anti-discrimination law in the Philippines. What steps had been taken to adopt an anti-discrimination bill? How would the State party protect vulnerable persons from discrimination? What measures had the State party taken to increase the representation of women in politics and decision-making positions, and in high income sectors of the economy? How was the State party providing childcare services to empower women to take part in the workforce?

    Responses by the Delegation 

    The delegation said the judiciary was independent and the Judicial Bar Council nominated judges independently. Justice programmes had been included in Government fiscal programmes to ensure that they were appropriately funded.

    The conditional cash transfer programme benefitted the poorest households with family members who were still in school. The poverty rate was at 15.5 per cent as of 2023. This rate had decreased thanks to State support programmes. The State party was investing in physical and digital connectivity for island provinces, which facilitated poor households’ access to growth centres.

    The Philippines was vulnerable to natural disasters. The Government was investing in disaster risk reduction and mitigation. Concerning the Paris Agreement, the State’s goals were to reduce emissions by 75 per cent, reduce dependence on fossil fuels, and increase the use of renewable energy. The Electric Vehicle Industry Development Act reduced tariffs on electric vehicles to encourage their import and use.

    The State party had specific laws on anti-discrimination in different fields. It did not have a bill on sexual orientation and gender identity, but had issued an executive order that concerned discrimination on the basis of gender preferences.

    The State party’s justice system, including the Supreme Court, and its national human rights institution, the Commission on Human Rights, effectively addressed complaints of human rights violations. There was thus no need to ratify the Optional Protocol.

    There were many non-governmental organizations in the Philippines that had expressed opposition to the current bill on human rights defenders. The State party had engaged with civil society organizations on the revision of the bill. The bill called for human rights defenders to not advocate for the violent overthrow of the Government.

    The State party was supporting the participation of women in the labour force. It had advocated for policies and legislation that allowed for nighttime work for women, safe spaces in workplaces, lengthened maternity and paternity leave and telework, and was conducting studies on inclusive work arrangements for women, youth and persons with disabilities.

    The Philippines’ Anti-Terrorism Act supported the country’s response to terrorism and safeguarded the rights of those accused of the crime. The State had issued guidelines on detentions and surveillance that ensured that persons’ rights were not violated. The Philippines’ rank in the Global Terrorism Indexhad fallen thanks to implementation of the Act. Investigations had been launched into all claims of misuse, and arrest warrants had been issued for officers who had misused the law. Enforcement of the Act was carried out with the highest level of responsibility. The State party ensured that its actions adhered to due process and the rule of law.

    The Philippines was a State party to the United Nations Convention against Corruption and had implement a national corruption prevention programme. Recently, it had hosted a regional conference on open governance and enacted a revision to the Government Procurement Act, which closed loopholes. An electronic procurement service had been launched to increase transparency. Many Government processes had been digitised, lessening opportunities for corruption.

    The Indigenous Peoples’ Rights Act protected designated ancestral grounds and cultural heritage as “no-go zones” for development projects and emphasised free, prior and informed consent for all such projects. The Government was mapping and registering indigenous cultural assets to protect them.

    The State had an indirect taxation system, as many families relied on overseas remittances for their income, which were not being taxed. The tax system punished undesirable behaviours such as the consumption of alcohol and cigarettes. Revenues from these taxes were being allocated to the health sector.

    Follow-Up Questions by Committee Experts 

    Committee Experts asked follow-up questions on measures to ensure that internally displaced persons had access to adequate food, basic housing, healthcare, education and social protection services; the status of the bill on the protection of internally displaced persons; measures other than the tax system to reduce disparities in wealth and income; steps to ensure gender parity in Government bodies; whether the State party had an implementation mechanism for recommendations issued to it by international bodies; how the State party linked climate adaptation policies with the land registration system to compensate people affected by natural disasters; how the State party could receive income from major emitters to fund climate adaptation plans; the ramifications of tax policies on economic, social and cultural rights; projects to strengthen anti-corruption bodies; and whether the State party trained judges and prosecutors on the Covenant.

    Responses by the Delegation

    The delegation said the National Commission on Indigenous Peoples was revising guidelines on the Indigenous Peoples’ Rights Act. The Commission had issued 272 approved ancestral domain titles to indigenous peoples.

    The national disaster risk reduction management framework addressed preparedness, rescue, response, recovery and rehabilitation. The State party conducted post-disaster needs assessments and tried to compensate for economic loss. A “digital locker” was being developed to allow citizens to store land titles, which would support reparation claims in cases of disasters.

    Discussions on the national action plan on business and human rights were in advanced stages. The State party sought to develop business and human rights policies that addressed specific issues related to children, indigenous peoples and environmental protection.

    The Government was interested in generating revenues from major emitters. It had developed a law that allocated resources to measuring loss and damage from climate change, which would help in this regard. The State party hosted the Loss and Damage Fund, and there were many international investments in environmental, social and governance projects in the Philippines.

    The Philippines had been recognised by the United Nations for its national recommendations tracking database. Judges were provided with training on the Covenant.

    Women parliamentary members had pushed for policies promoting women’s rights and inclusive governance. Community consultations and education programmes were in place to promote women’s participation in politics.

    The State party had proposed bills to amend taxes on passive income. It provided tax incentives to businesses that chose to operate outside of Manila.

    Questions by a Committee Expert

    SEREE NONTHASOOT, Committee Expert and Member of the Taskforce for the Philippines , expressed concerns about high levels of unemployment and informal employment in the Philippines. The informal sector provided livelihoods for about 60 per cent of the population, the majority of whom were female. What measures were in place to regularise the informal sector? The Committee was concerned about the quality of employment provided to persons with disabilities.

    What measures were in place to inspect sweatshops and to issue sanctions to employers who violated workers’ rights? What measures were in place to address workplace harassment and gender-based violence. Who was excluded from the social security system? It reportedly did not cover persons in street situations.

    There was significant variation between minimum wages in the capital and other regions. How did the State party support adequate living and working standards outside the capital? Did workers who were not paid minimum wages have access to a complaints mechanism? There had been a significant increase in child labour in the State party. How was this being addressed?

    The Committee was concerned by reports of red-tagging and killing of trade union workers. How was the Government promoting freedom of association? What was the role of relevant agencies in protecting trade union rights and the right to strike?

    Responses by the Delegation

    The delegation said the unemployment rate for 2023-2024 was 4.3 per cent. The rate quickly recovered after the pandemic. The State party had determined that less than 40 per cent of workers were in the informal sector. It was developing policy recommendations related to protecting the rights of informal sector workers and revising occupational safety and health standards to protect against accidents. The State was expanding opportunities for skills training and upskilling to help citizens increase their employability. There was a policy and regulatory framework in place to protect the rights of workers in the “gig economy”.

    The Government was encouraging investment outside of the capital. It conducted consultations and examined trends in real wages before setting regional minimum wages. Setting a standard minimum wage for the entire State would discourage businesses from investing in remote provinces.

    There was no State policy to attack human rights defenders. There were remedies to address violations of the right to life, and freedom of association and assembly. The Government rejected the word red-tagging due to the absence of such a policy.

    The “Reach Out” programme aimed to reach out to families in street situations, welcoming them in temporary shelters. Abandoned children were placed in foster families. Over 2,000 individuals had benefitted from the programme in 2023.

    The National Commission against Child Labour had inspected over 10,000 establishments in 2020, identifying violations of child labour laws. Many children identified as labourers were provided with educational materials and support. Family cash transfer programmes included seminars for parents which discouraged child labour. Parents who engaged their children in child labour could be taken off the programme.

    The Government was providing training for persons with disabilities to help them pass eligibility requirements for public sector jobs. It also conducted skills matching to help persons with disabilities access work in the private sector.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on whether regional minimum wages were indexed and reviewed regularly; the role of the Government in protecting Filipino national migrant workers overseas; the number of labour inspections conducted annually; whether the Commission on Human Rights received complaints from workers; whether the State party would adopt policies mandating businesses to adopt diversity and inclusion regulations; plans to revise the Labour Code to remove barriers to forming and joining trade unions; and disaggregated data collected on persons not in employment, education or training.

    Responses by the Delegation

    The delegation said the Government considered regional poverty lines when setting provincial minimum wages. This was a starting wage, and the Government was supporting workers to receive higher wages.

    The State party had created a Department of Migrant Workers, which protected the rights of national migrant workers overseas. The Department was forming bilateral agreements with other countries to protect migrant workers from abuse. Several thousands of workers had been repatriated during the pandemic, many of whom had received assistance. Their children were provided with scholarships.

    Collecting data on persons not in employment, education or training was a goal of the Philippine Development Plan. There were special employment programmes for students and alternative learning systems in place to reduce the number of such persons.

    The State party had intensified efforts to identify and prevent child labour. More than 50,000 child labourers had been provided with necessary services and more than 30,000 child labourers had been removed from labour.

    The Philippines had several thousands of trade unions and workers’ associations with over four million members in total. The State engaged in dialogue with the International Labour Organization regarding incidents in which workers were killed or disappeared, and had adopted measures to prevent such incidents in the future. A committee had been formed to investigate these cases, and investigations into several cases had been concluded.

    In 2023, the State party had inspected more than 400,000 establishments to ensure they complied with health and safety standards.

    Questions by a Committee Expert

    LUDOVIC HENNEBEL, Committee Vice-Chair and Member of the Taskforce for the Philippines , asked about progress made in implementing recommendations from other treaty bodies on polygamy. What measures were in place to reform divorce procedures? 

    Had the State party received complaints regarding the violation of children’s rights during conflict or on the recruitment and use of children in armed conflict? What sanctions were imposed for persons who forced children to work? How was the State party preventing sexual and online exploitation of children, and supporting birth registration for children from indigenous and Muslim communities? What measures were in place to protect victims of rape and to repeal laws allowing perpetrators to avoid punishment by marrying victims?

    How did the State party promote equal access to civil unions for members of the lesbian, gay, bisexual, transgender and intersex community and protect the bodily integrity of intersex persons?

    How were people in the informal sector supported to access housing? What measures were in place to prevent evictions? How did the State party promote access to health for vulnerable groups, to mental health care in rural areas, and to emergency contraception and post-abortion care? How did it promote education on sexual and reproductive health for rural and young people?

    Was the State party planning to decriminalise drugs for personal use and implement alternatives to imprisonment for drug users? What protection was in place to prevent stigmatisation and criminalisation of persons receiving treatment for drug addiction? What measures were in place to put an end to the “war on drugs” and to provide reparations to victims of the war?

    Responses by the Delegation

    The delegation said the Philippines recognised several types of contractual employment, including for work performed outside the employer’s facilities and independent contractors. These workers were able to file complaints with the Government in cases of violations of labour rights.

    A law on agrarian emancipation had freed 6,000 farmers from debt. The State was also implementing agricultural support programmes. The area under the Verde Island Passage would be declared as a protected area, and the State would allocate resources to protecting the area. The State’s Blue Economy Bill would mandate policies for managing marine and coastal resources. The State party had also enacted a law on seafarers’ rights.

    The natural disaster risk reduction and management act regulated support for persons displaced by natural disasters. Such persons could access State-funded shelters. The Government continued to provide support to persons displaced by the 2017 Marawi siege. The Marawi Compensation Board ensured tax-free compensation for housing and property lost during the siege. The State also provided livelihoods, healthcare and educational support for victims.

    The Executive Branch had been advocating for a law on freedom of information, which would be passed soon. A freedom of information programme had been established to grant public access to official, non-confidential documents of public concern. A witness protection programme was also in place. The Anti-Red Tape Authority promoted transparency in Government operations, while the Ombudsman acted on confidential complaints of corruption. Punitive actions for corruption offences were severe.

    In State law, polygamy was illegal, and bigamy was a criminal offence. However, Muslim men with financial ability and their wives’ permission could marry multiple wives under traditional law, which also mandated divorces.

    The Philippines advocated for the protection of children in armed conflict. It had ratified the Optional Protocol to the Convention on the Rights of the Child on the involvement of children in armed conflict. Members of the Armed Forces under the age of 18 did not take part in combat. When violations occurred, investigations were carried out. However, the New People’s Army continued to recruit children. There were over 500 documented cases of this terrorist group’s use of children. The Government continued to exert efforts to ensure that schools were not used to exploit children.

    The State was strengthening efforts to address adolescent pregnancy through the implementation of comprehensive sexuality education and referral networks to reproductive health facilities. Over 100 schools were implementing the education programme, and over 1.1 million leaners had participated. Behavioural change materials had also been developed for schools and health facilities.

    The Philippines remained a prime target for online sexual abuse of children. Legislation had been implemented in 2022 to penalise all forms of online abuse of children. State agencies were cooperating to identify perpetrators.

    The Government was collecting data on malnutrition and stunting. Stunting in children under five had decreased from 33 per cent in 2018 to 23 per cent in 2024.

    Housing had been declared as a national concern by the current Government. The national housing programme had provided an average of 35,000 social housing units per year in recent years. Around 75,000 housing units had been provided to persons living in areas vulnerable to natural disasters and to indigenous peoples.

    The Government was adopting a humanitarian approach to drug use and rehabilitation. The drug clearing project sought to take away drugs from the people and discourage people from using drugs. Rehabilitation support was provided to drug users. Over 60 per cent of regions had been declared “drug cleared”, and over 40 per cent “drug-free”.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on the passage of the extrajudicial killing bill and its relationship with the State drug policy; whether police were prohibited from reporting drug-related deaths to the media; whether detentions of drug users were voluntary; how the State supported people with drug-use records, who were criminalised, to access the work market; issues with the coverage of social security and nutrition programmes; measures to expedite agrarian reform to address high levels of poverty among farmers; measures to protect small-scale fishers from large-scale fishing businesses; indicators to assess multi-dimensional poverty and inform policies to tackle poverty; measures to support and protect the children of overseas workers from domestic abuse; how the energy market was regulated to make access to energy affordable; the impact of the prohibition of abortion on maternal mortality rates and measures implemented to respond to treaty bodies’ recommendations on increasing access to pre- and post-natal care services; and measures to legalise abortion in cases where there was risk to the health of the mother.

    Responses by the Delegation

    The delegation said there were several programmes supporting children in their first 1,000 days of life, including conditional cash transfers. Health workers were provided with training on caring for newborns and there were pre- and post-natal care programmes in place.

    The Philippines was an early adopter of a multidimensional poverty index, which helped to identify areas in which increased support was needed. A community-based monitoring system had been set up to collect data on multidimensional poverty.

    The State party had observed that for families with mothers who migrated overseas, grandparents typically cared for children and family circles also provided support. The Government had instructed teachers on identifying evidence of domestic abuse. Migrant workers were required to develop financial plans before leaving the country. The reintegration programme was being strengthened to help returning migrant workers.

    The State had reached 100 per cent electrification of rural regions, and was now working to address pockets of households that did not have electricity, supporting their access to renewable energy.

    Maternal deaths had been steadily decreasing in recent years. The Government was continuing to strengthen maternal and newborn care programmes, including by upskilling birthing nurses and reducing unsafe abortions.

    The State party prevented commercial fishers from fishing in waters reserved for municipal fishers and spawning grounds. The Clean and Healthy Oceans Programme aimed to reduce illegal and unregulated fishing by improving compliance with regulations. Programmes were in place to develop aquatic parks to support small-scale fishers, who could also access support for livelihoods and fishing tools.

    Questions by a Committee Expert

    LAURA-MARIA CRACIUNEAN-TATU, Committee Chair and Member of the Taskforce for the Philippines , commended the State party on the constant increase in the budget allocated to education, which had reached 3.2 per cent of gross domestic product. However, this was well below the United Nations’ recommendation of at least four per cent of gross domestic product. Were there further plans to increase the education budget? The Philippines’ global ranking in terms of quality of education was in the bottom 25 of 172 nations, the lowest score in Asia. What measures were envisioned to increase access to quality education for all?

    The State party had put in place a five-year development plan for children with disabilities, which ended in 2019. What results were achieved by the plan and what measures were in place to address limited access to education for children with disabilities and indigenous children? In one region, 56 per cent of children were not attending school. What measures were in place to address this issue? What measures were in place to address the impact of COVID-19 lockdowns on access to education? How was the national policy framework on schools as zones for peace implemented? Legislation had been implemented that discontinued mother tongue education for minority groups. What was the rationale behind the adoption of this law?

    There was increasing disparity in access to the internet across different regions. What measures were in place to improve access to the internet for poor households and regions?

    Responses by the Delegation 

    The delegation said that the Constitution mandated that education needed to be given priority in the budget. Overall spending on education amounted for around 5.5 per cent of gross domestic product. The State party had made kindergarten education compulsory and extended compulsory education by two years, and the curriculum had been revised recently to improve education quality. The Government was working to address the inadequate supply of textbooks and computers in schools through decentralisation. The Philippines had over 100 languages and it was difficult to develop learning materials in each of these languages. The State thus decided to discontinue mother tongue language instruction and standardise English as a medium of instruction from grade five.

    The State party was also working to address the impact of the COVID-19 pandemic on learning outcomes. Recently, legislation had been passed on remedial education. During the pandemic, the Government adopted learning continuity plans to support access to education through online and broadcast education.

    The Government had implemented many measures to manage culturally sensitive education in Muslim and indigenous communities. Education on peace and conflict resolution was being promoted, and the State party was working to repair schools damaged by conflicts. The Government promoted the concept of schools as zones of peace in conflict-affected areas such as Mindanao. Local governments and security forces contributed to protecting schools in peace zones from being used in military activities through measures such as school escorts. The Government continued to provide psychosocial support for children affected by armed conflict.

    The indigenous education programme promoted quality, culturally relevant education for indigenous peoples. It had been implemented in over 3,000 schools. Over 75 indigenous languages were used in instruction, and an additional 4,000 teachers, 95 per cent of whom were indigenous, had recently been hired to provide education to indigenous children.

    The Government was working to improve access to education and healthcare for children with disabilities. Legislation mandating inclusive education for children with disabilities had been adopted and disability support officers had been established in educational institutions.

    The State party had improved the policy and regulatory framework on internet access. The national fibre-optic cable network was being expanded to southern regions. The State party was collaborating with Starlink to allow southern provinces to access the internet via satellites. Telecommunications companies were provided with incentives to operate in the Philippines, and wi-fi access points were being set up in schools and public places.

    The State’s campaign against illegal drugs was now geared towards rehabilitation and reintegration of drug users. The House of Representatives had investigated extrajudicial killings occurring in the context of the war on drugs and the Government had decided to amend the Penal Code to increase penalties for extrajudicial killings.

    Follow-Up Questions by Committee Experts

    Committee Experts asked follow-up questions on how the State party promoted education in Spanish and Arabic; the results of the education programme on Islamic values; how the State party protected the expression of indigenous culture and indigenous cultural sites; whether indigenous leaders participated in creating policies impacting their communities; legal and administrative provisions to protect indigenous languages; the number of legal cases invoking economic, social and cultural rights in which reparations had been granted for violations; the role of the Commission of Human Rights in investigating complaints from workers and places of detention; how the State party would protect fishing zones for small-scale fishers; measures for reducing threats and attacks against human rights defenders; plans to decriminalise abortion; and measures to protect the lesbian, gay, bisexual, transgender and intersex community.

    Responses by the Delegation

    The delegation said there were schools in Mindanao that provided Arabic and Islamic education. Education in Spanish and Arabic was an option in mainstream schools. Four-year courses on Arabic teaching were provided in local universities.

    There was no legal framework on cultural misappropriation, but the Government was working to protect intellectual property rights by registering the cultural assets and expressions of indigenous peoples. Indigenous communities needed to be consulted regarding all projects and policies affecting them. Indigenous leaders were included in local development councils.

    Courts had cited the Covenant in decisions upholding standards of living and access to economic, social and cultural rights, including in cases in which remedies were granted for environmental harm caused by mining operations. There needed to be a new Charter governing the mandate of the Commission on Human Rights, which had traditionally focused on civil and political rights but was recently working to promote economic, social and cultural rights.

    Court cases were underway into violations of regulations on fishing zones by commercial fishers. The Government protected the rights of legitimate environmental defenders. Protection of the environment was included as a pillar of the national security policy.

    The State party had pivoted to a community-based approach to illegal drugs. Many drug users were treated in communities rather than in rehabilitation centres. Persons who participated in rehabilitation programmes were removed from criminal offender lists, but not drug user lists.

    The State party had not yet developed a comprehensive bill on the rights of internally displaced persons. Persons affected by the Marawi siege had been provided with access to water and electricity, and reconstruction efforts were ongoing in affected areas.

    The State had created a committee on lesbian, gay, bisexual, transgender and intersex affairs, which was developing policies and programmes to promote equality and inclusion of the community. The Constitution and various State legislation prohibited discrimination based on sexual orientation and gender identity. The police had formulated a gender sensitivity programme to ensure protection of this community.

    Pre-natal checkups were provided free of charge in primary health facilities, and mobile clinics provided maternal health services in isolated areas. The Government, while maintaining the prohibition of abortion, had taken measures to ensure quality post-abortion care was provided without stigmatisation.

    Closing Remarks

    ASRAF ALLY CAUNHYE, Committee Expert and Country Rapporteur for the Philippines , said the dialogue had been fruitful and constructive, addressing a range of issues confronting the Philippines. Discussions had brought to light issues that needed to be addressed to strengthen the implementation of economic, social and cultural rights, and would inform the Committee’s concluding observations. Mr. Caunhye expressed thanks to all persons who had contributed to the dialogue.

    ROSEMARIE G. EDILLON, Undersecretary, Policy and Planning Group, National Economic and Development Authority of the Philippines and head of the delegation, thanked the Committee for the dialogue. The State party was united in its goal of advancing economic, social and cultural rights. The President had a clear vision for national development that focused on improving access to all economic, social and cultural rights. The State party would continue with actions that would create change and realise the economic, social and cultural rights of all citizens.

    LAURA-MARIA CRACIUNEAN-TATU, Committee Chair , thanked the delegation for participating in the dialogue and for providing comprehensive answers. In some instances, additional data would have been appreciated. Human rights mechanisms were not mutually exclusive; they all served to enhance protections of rights holders. The Committee thanked civil society organizations for submitting information to the Committee and called for further cooperation between civil society and the Government.

    __________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CESCR25.006E

    MIL OSI United Nations News –

    February 20, 2025
  • MIL-OSI United Kingdom: Budget: Discussed and decided

    Source: City of Sunderland

    A budget for the next financial year has been decided at a meeting of the City Council.

    The three hour meeting at City Hall (Wednesday 19 February) saw the budget backed with a vote of 44 councillors in favour and 17 against.

    From April the Council Tax for day-to-day services, which raises around £16 of every £100 the council spends, will rise by 2.49 per cent. This is to help fund hundreds of city services from waste collection to parks and street lighting.

    The Adult Social Care Precept will rise by 2 per cent and the council has joined with other local authorities to lobby the Government on reforming social care funding and to end this local precept.

    Leader of the City Council, Councillor Michael Mordey said: “We have worked very hard to ensure this is a positive budget, which allows us to continue with our ambitious social and economic regeneration plans for the city, whilst ensuring we continue to protect and support our residents most in need.”

    The majority of city households are in Council Tax Band A and have a £0.99p weekly increase to help pay for city services and social care. The national benchmark Band D increase is a weekly city rise of £1.48p.

    With increasing demand and cost pressures for adult social care, the 2 per cent precept is expected to raise around £2.6m. More spending on adult social care is a key part of the new budget with an extra £15.8m allocated for the next year.

    While outlining a more positive settlement from the new Government, Cllr Mordey said that to achieve a balanced budget the council would be using £9m of reserves and continue to introduce and achieve more savings and cost efficiencies.

    He said: “Raising council tax remains one of the most difficult decisions for all councils. However, if we don’t raise it, we will need to cut services and reduce our investment into key priority areas.

    “That would mean cuts in services to those most vulnerable in our communities and to the services which residents tell us are a high priority.

    “Our budget proposals for next year confirm that we will continue to invest in our city. We will continue to invest to protect the most vulnerable people in Sunderland, and we will continue to invest in services that our residents tell us are important to them such as tackling anti-social behaviour and increasing community safety.”

    The council has a programme of ambitious investments of more than £400m over the four years and more than £250m of this is programmed for the next year. Projects due for completion in coming months include the new Wear footbridge open for the hosting of the Women’s Rugby World Cup, the Culture House opened, while a school buildings solar panel programme will get underway alongside further investments in the city’s infrastructure.

    Budget reports can be viewed at: Meetings and Events

    MIL OSI United Kingdom –

    February 20, 2025
  • MIL-OSI United Kingdom: Additional dates for public Visitor Levy consultation sessions

    Source: Scotland – Highland Council

    The Highland Council has added additional dates to the series of engagement events so members of the public can take part in the current consultation process on the proposed Visitor Levy Scheme for Highland.

    Additional events are to take place in Portree and Kinlochbervie.

    The sessions that have taken place so far have been well received, with people attending to find out more about the consultation process and to ask lots of questions.

    Council Convenor Bill Lobban said: “I’d like to thank everyone who has taken up the opportunity so far to come to speak to our staff to find out more about the consultation process and to ask questions. I’m pleased to see more dates for these drop-in-events being added as we want the consultation to be as inclusive as possible, ensuring that it fairly and accurately captures opinion and feedback from across all communities.”

    The Public Library Community Drop-in Events are informal in-person drop-in sessions to chat with Council staff on the proposed Visitor Levy Scheme and ask questions about the proposal or the consultation process. Public access computers will be available on-site for members of the public to fill in the online consultation document, if required.

    Details of sessions still to take place are as follows:

    • Fort William Library – 26 February 2025, 11:00-13:00
    • Ullapool Community Library – 27 February 2025, 11:00 – 13:00
    • Brora Library – 28 February 2025, 10:30 – 12:30

    The Community Drop-in Events still to take place are:

    • Kyle of Lochalsh Service Point – 20 February 2025, 11:00 – 13:00
    • Kinlochbervie Harbour Officer – 17 March 2025 – 11.30 – 13.30

    There will also be a Community In-person Event on the Isle of Skye on Friday 14 March that will take the form of a formal presentation from Council staff on the proposed Visitor Levy Scheme followed by an opportunity to ask questions. This event will be held in the Skye Candle Visitor Centre , Portree from  2:00-3:30pm.

    Formal industry-led events to discuss the specific business-related aspects of the proposed Visitor Levy Scheme with the opportunity to ask questions about the proposal or the consultation process will also take place. Chambers of Commerce have now publicised details of these sessions that council staff will be attending, and these are also listed on the Highland Council Visitor Levy Consultation website.

    Everyone is being encouraged to regularly check the Visitor Levy Consultation website as further details are confirmed, and registration links to online events are published.

    lso on the website are helpful FAQs that have been updated recently with additional questions raised at earlier public engagement sessions.

    MIL OSI United Kingdom –

    February 20, 2025
  • MIL-OSI: FN2/2025 Kapitalforhøjelse – Nye aktier

    Source: GlobeNewswire (MIL-OSI)

    NASDAQ FIRST NORTH GROWTH MARKET MEDDELELSE NR. 2/2025

    København, den 19. februar 2025

    FN2/2025 Kapitalforhøjelse – Nye aktier

    I forlængelse af FN1 vedrørende kapitalforhøjelsen meddeler selskabet hermed, at de nye aktier (i alt 49.257 stk.) er ansøgt optaget til handel på Nasdaq First North Growth Market Denmark hurtigst muligt. 

    Yderligere oplysninger

    FastPassCorp A/S, administrerende direktør Anders Meyer, am@fastpasscorp.com

    Certified Adviser

    Baker Tilly Corporate Finance P/S, Poul Bundgaards Vej 1, DK-2500 Valby, Tlf.: +45 33 45 10 00,

    www.bakertilly.dk

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Northern Horizon Capital A/S appoints Christoffer Abramson as the Group CEO

    Source: GlobeNewswire (MIL-OSI)

    Northern Horizon Capital AS, the management company of Baltic Horizon Fund, hereby informs of changes in the leadership of Northern Horizon Capital A/S (the parent company of Northern Horizon Capital AS).

    After leading Northern Horizon group for almost 7 years, Milda Darguzaite will step aside from her CEO position to assume the role as Member of the Board of Directors of Northern Horizon Capital A/S.

    Christoffer Abramson shall assume the position as Group Chief Executive Officer of Northern Horizon Capital A/S effective 4 March 2025.

    Christoffer Abramson is a seasoned international executive and real estate investment expert. Most recently, Christoffer Abramson was President and CEO of Catella AB (publ.). Prior to this role, Christoffer Abramson spent seven years based in the US at EF Education First where he helped create and build a significant global Real Estate business. He has also worked General Electric across the globe for 10 years, ending his GE career as the CFO of GE Real Estate based in London.

    “We are confident that Christoffer, with his extensive experience, Nordic background and strategic thinking, is the right person to lead the company and drive our next chapter of growth. On behalf of the Board of Directors, I would also like to extend our sincere gratitude to Milda for her dedicated leadership. We are privileged that she has accepted to become a Member of the Board. Her expertise will be invaluable as we continue to grow our platform,” Lars Ohnemus, Chairman of the Board of Directors of Northern Horizon Capital A/S, commented.

    For additional information, please contact:

    Tarmo Karotam
    Baltic Horizon Fund manager
    E-mail tarmo.karotam@nh-cap.com
    www.baltichorizon.com

    The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS. 

    Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com

    To receive Nasdaq announcements and news from Baltic Horizon Fund about its projects, plans and more, register on www.baltichorizon.com. You can also follow Baltic Horizon Fund on www.baltichorizon.com and on LinkedIn, Facebook, X and YouTube.

    The MIL Network –

    February 20, 2025
  • MIL-OSI United Kingdom: Latest Council Budget plans include £5m boost for neighbourhoods

    Source: City of Manchester

    Manchester City Council is set to invest around £5 million extra funding to keep neighbourhoods clean, green and tidy. 

    The move, proposed in newly-published reports about the Council’s 2025/26 budget to be considered at its Executive meeting on 19 February, will be funded from Manchester’s £5.4 million share of a rebate to councils from Greater Manchester Combined Authority’s waste reserve which was announced last week.  

    The extra funding, to be spent over three years, will be used to improve and support the upkeep of neighbourhoods across the city. In the council’s recent budget consultation this was the top priority identified by residents – with 77.5% of residents putting it among the issues which mattered the most to them.  

    £4.6 million of the extra funding will be invested to boost services to keep neighbourhoods clean, including cleaning, combatting flytipping, maintenance of green spaces and leaf collection. 

    A further £400,000 will be used to overturn a decision taken last year to start charging for replacement recycling bins which would have applied from this April.  

    The remainder will be invested in other neighbourhood priorities including an extra £338,000 towards improved enforcement to tackle damp and mould in private rented sector properties.  

    While significant challenges remain, the Council’s position has improved since planning for its 2025/26 budget began in spring 2024. At that point the then Government had indicated there would be real terms funding cuts for local government which, together with emerging pressures, would have required deep cuts.  

    The incoming Government’s Autumn Statement reversed this position with a real terms increase in Core Spending Power instead. The Government’s financial settlement for the Council, which it received just before Christmas, was better than expected with a number of increases, especially in recognition of the nationwide pressures in social care. Manchester’s Core Spending Power increase of 10.4% is the highest nationally, reflecting a ministerial decision to direct resources to places with high deprivation levels and low council taxbases which had been the hardest hit since 2010. 

    This has meant that while £18.2m of savings from previously published savings identified for 2025/26 are required, the Council will be able to set a balanced budget for 2025/26 which also takes account of ongoing pressures. The savings relate to efficiencies and increased income generation not service reductions.  

    The budget assumes a 4.99% increase in the Council’s element of Council Tax, 2% of which is specifically to support adult social care.  

    Council Leader Cllr Bev Craig said: “We are still dealing with the brutal legacy of 14 years of austerity and cuts to our funding under the previous Government, and that can’t be turned around overnight.  

    “But the improved funding under the current Government, which recognises this legacy, is a step in the right direction. Together with our careful planning, it means we’re able to bring forward a budget which looks to make lives better and improve the city.”  

    Councillor Rabnawaz Akbar, Executive Member for Finance, said: “Residents told us loud and clear in our recent budget consultation that keeping neighbourhoods clean was their top priority and we have responded to that with this extra investment. 

    “We are pleased to be in a position where can deliver a budget that works for Manchester people.”  

    MIL OSI United Kingdom –

    February 20, 2025
  • MIL-OSI: Gevo to Report Fourth Quarter 2024 Financial Results on March 6, 2025

    Source: GlobeNewswire (MIL-OSI)

    ENGLEWOOD, Colo., Feb. 19, 2025 (GLOBE NEWSWIRE) — Gevo, Inc. (NASDAQ: GEVO) announced today that it will host a conference call on March 6, 2025, at 4:30 p.m. ET (2:30 p.m. MT) to report its financial results for the fourth quarter ended December 31, 2024.

    To participate in the live call, please register through the following event weblink:
    https://register.vevent.com/register/BIfe02700a31384d12946e60bf35964cb8

    After registering, participants will be provided with a dial-in number and pin.

    To listen to the conference call (audio only), please register through the following event weblink: https://edge.media-server.com/mmc/p/h9wkbjf5

    A webcast replay will be available two hours after the conference call ends on March 6, 2025. The archived webcast will be available in the Investor Relations section of Gevo’s website at www.gevo.com.

    About Gevo
    Gevo is a next-generation diversified energy company committed to fueling America’s future with cost-effective, drop-in fuels that contribute to energy security, abate carbon, and strengthen rural communities to drive economic growth. Gevo’s innovative technology can be used to make a variety of renewable products, including sustainable aviation fuel (“SAF”), motor fuels, chemicals, and other materials that provide U.S.-made solutions. By investing in the backbone of rural America, Gevo’s business model includes developing, financing, and operating production facilities that create jobs and revitalize communities. Gevo owns and operates one of the largest dairy-based renewable natural gas (“RNG”) facilities in the United States, turning by-products into clean, reliable energy. We also operate an ethanol plant with an adjacent carbon capture and sequestration (“CCS”) facility, further solidifying America’s leadership in energy innovation. Additionally, Gevo owns the world’s first production facility for specialty alcohol-to-jet (“ATJ”) fuels and chemicals. Gevo’s market-driven “pay for performance” approach regarding carbon and other sustainability attributes, helps ensure value is delivered to our local economy. Through its Verity subsidiary, Gevo provides transparency, accountability, and efficiency in tracking, measuring and verifying various attributes throughout the supply chain. By strengthening rural economies, Gevo is working to secure a self-sufficient future and to make sure value is brought to the market.

    For more information, see www.gevo.com.

    PUBLIC AFFAIRS CONTACT
    Heather Manuel
    VP of Stakeholder Engagement & Partnerships
    PR@gevo.com

    INVESTOR CONTACT
    Eric Frey, PhD
    VP of Corporate Development
    IR@gevo.com

    The MIL Network –

    February 20, 2025
  • MIL-OSI Asia-Pac: LCQ19: Attracting strategic enterprises in advanced manufacturing industries

    Source: Hong Kong Government special administrative region

         Following is a question by the Hon Yim Kong and a written reply by the Deputy Financial Secretary, Mr Michael Wong, in the Legislative Council today (February 19):Question:     The Office for Attracting Strategic Enterprises (OASES) commenced operation in December 2022, which was tasked with attracting industries of strategic importance to Hong Kong (including advanced manufacturing industries) to pursue development in Hong Kong. Some analyses have pointed out that investments in advanced manufacturing industries focus on technology and capital, and the number of jobs created is limited. There are also views that although automation and intelligentisation may reduce the number of jobs in traditional manufacturing industries, they also create jobs in technical maintenance, research and development as well as management. In this connection, will the Government inform this Council:(1) how it will assess the effectiveness of OASES’ work carried out in 2023 and last year;(2) whether it has compiled statistics on the investment amount and the numbers of employees hired by the enterprises related to advanced manufacturing industries; how the Government will assess the effectiveness of the policies implemented in 2023 and last year on attracting strategic enterprises in advanced manufacturing industries covering such aspects as taxation, financing and talents, so as to ensure that the objectives of attracting investments and creating employment opportunities can be achieved; and(3) whether it has assessed if the manpower trained by local universities caters for the needs of the future development of advanced manufacturing industries; whether the Government will, in attracting the strategic enterprises concerned, implement plans to support manpower training in the light of the development needs of the enterprises, such as setting up vocational training funds and encouraging enterprises to collaborate with universities and vocational training schools to offer training courses related to advanced manufacturing industries to nurture the required talents for the enterprises?Reply:President,     The Office for Attracting Strategic Enterprises (OASES) is dedicated to attracting enterprises from industries of strategic importance to Hong Kong. Its work includes identifying target strategic enterprises, understanding their needs and providing customised facilitation support and one-stop services to strategic enterprises that are establishing their presence in Hong Kong. My reply to the questions raised by the Hon Yim Kong is as follows:(1) Since its commencement of operation in December 2022, OASES has reached out proactively to high-potential and representative strategic enterprises from around the globe. Despite the complicated and ever-changing economic environment in recent years, substantive progress has been achieved by OASES over the past two years. So far, 66 strategic enterprises have been brought to Hong Kong, and they are from the four strategic industries, i.e. life and health technology, artificial intelligence and data science, financial technology and advanced manufacturing and new energy technology. Among them, around 80 per cent plan to establish their global or regional headquarters in Hong Kong. It is estimated that in the coming years, they will invest about $42 billion in total and create more than 17 000 jobs.     OASES also continues to follow up on the development and needs of strategic enterprises that have established their presence in Hong Kong. By assisting and accelerating the plans of strategic enterprises to use Hong Kong as their base to tap into the Mainland market or expand overseas, it would thereby speed up the diversification and transformation of Hong Kong’s industries. This would also further strengthen Hong Kong’s role as a “super connector” and “super value-adder”, and attract more overseas enterprises to use Hong Kong as a base to tap into the Mainland market, while supporting Mainland enterprises to “go global”.(2) Based on the information from OASES, amongst the 66 strategic enterprises that have established their presence in Hong Kong, 12 belong to the advanced manufacturing and new energy technology industry. They include companies with a market capitalisation/valuation of over $10 billion, and are engaging in cutting-edge technologies. The enterprises have either established or plan to establish research and development (R&D) centres and/or production bases in Hong Kong, while 75 per cent of them plan to establish international or regional headquarters in Hong Kong. OASES has closely followed up on the development and needs of these strategic enterprises, and provided them with customised facilitation support. For example, a series of matching activities with parties such as innovation and technology (I&T) parks, universities and research institutes, chambers of commerce and professional bodies were arranged to speed up their commencement of operation in Hong Kong. It is estimated that in the coming few years, the aforementioned advanced manufacturing enterprises alone will invest around $5.6 billion in Hong Kong and create more than 1 800 jobs. By establishing or expanding their operations in Hong Kong, these strategic enterprises from the advanced manufacturing sector will also attract upstream, midstream and downstream partners from their industry chains to come to Hong Kong. This would accelerate the development of the advanced manufacturing industry, and assist the upgrading and transformation of the traditional manufacturing industry, thereby building a more vibrant ecosystem for the industry and creating more high-quality job opportunities.     In fact, with a view to promoting the development of new industrialisation in Hong Kong, the Government has been using various measures to encourage the manufacturing industry (including the advanced manufacturing industry) to upgrade and transform through the use of I&T. The implementation of such measures is progressing as scheduled. On tax measures, the Government offers tax concessions to enterprises engaging in R&D activities in Hong Kong. The qualifying R&D expenditures of such enterprises enjoy an enhanced tax deduction, with the first $2 million of the total expenditure eligible for a 300 per cent tax deduction, and the amount beyond $2 million eligible for a 200 per cent deduction. There is no cap on the amount of enhanced tax deduction, and it applies to all eligible enterprises. The Inland Revenue Department is still processing the tax returns and assessments for the year of assessment 2023/24 and does not further classify the relevant statistics into traditional or advanced manufacturing mode in the assessment of profits tax so is unable to provide the relevant statistics.     The Government also provides funding support to further promote new industralisation. For instance, the New Industrialisation Funding Scheme (NIFS), aiming to subsidise manufacturers to set up new smart production lines in Hong Kong, targets to increase the cumulative number of smart production lines funded under the scheme to at least 130 in 2027. As at January 2025, 63 applications have been supported by the NIFS Vetting Committee (Vetting Committee), involving more than 100 production lines in total. The progress is satisfactory. Besides, the $10 billion New Industrialisation Acceleration Scheme (NIAS) was set up by the Government in September 2024 to provide funding support on a matching basis for enterprises in strategic industries including advanced manufacturing and new energy technology. The first project under NIAS was supported by the Vetting Committee in early 2025, with the total project cost estimated at around $600 million and the expected NIAS funding amount at around $200 million. With enterprises actively participating in the two funding schemes, the Government is glad to see that they are making use of I&T to achieve smart production so as to enhance competitiveness.     Meanwhile, the Government is increasing investment and guiding more market capital to invest in I&T industries. For instance, it was announced in the 2024 Policy Address to set up a $10 billion I&T Industry-Oriented Fund to create a fund-of-funds and channel more market capital to invest in specified emerging and future industries of strategic importance, including areas such as advanced manufacturing, so as to systematically build an I&T ecosystem. Furthermore, the Policy Address also announced the optimisation of the Innovation and Technology Venture Fund by redeploying at most $1.5 billion to set up funds jointly with the market, on a matching basis, to invest in start-ups of strategic industries including advanced manufacturing and new energy technology, thereby strengthening the Hong Kong I&T ecosystem.(3) Post-secondary institutions in Hong Kong can flexibly offer programmes that meet market needs and to engage with relevant industry stakeholders for timely adjustment of programme content to enhance the learning experience of students. The Education Bureau has also been supporting different policy bureaux/departments in policy areas related to manpower and training needs.     In order to nurture local talents, the New Industrialisation and Technology Training Programme was launched in August 2018. It subsidises local enterprises on a 2 (Government): 1 (enterprise) matching basis to train their staff in advanced technologies, especially training related to new industrialisation.     OASES has all along been promoting and encouraging strategic enterprises that have established their presence in Hong Kong to consider participating in the talent training programmes launched by the Government to support talent nurturing. Meanwhile, OASES has also been promoting and encouraging these enterprises to engage with universities and research institutes to discuss potential research collaborations and matters related to talent development, so that there would be more avenues to nurture talents to meet the needs of the enterprises.

    MIL OSI Asia Pacific News –

    February 20, 2025
  • MIL-OSI Asia-Pac: Union Minister Shri Shivraj Singh Chouhan inaugurates the National Geospatial Knowledge-based Land Survey of Urban Habitations (NAKSHA) at Raisen, Madhya Pradesh

    Source: Government of India (2)

    Posted On: 18 FEB 2025 9:30PM by PIB Delhi

    Union Minister for Rural Development and Agriculture & Farmers’ Welfare Shri Shivraj Singh Chouhan inaugurated the National Geospatial Knowledge-based Land Survey of Urban Habitations (NAKSHA) Pilot programme of the Department of Land Resources, Ministry of Rural Development, Government of India at Raisen, Madhya Pradesh. The Union Minister also launched the Standard Operating Procedure (SoP) Booklet, Video and Flyers on  NAKSHA Programme, and flagged off  WDC Yatra. WDC video was screened and Watershed Anthem was played on the occasion. The NAKSHA launch functions have also been parallelly organized in 122 ULBs and some LSG / Revenue Department Headquarters across 26 States and 3 Union Territories. The occasion marked the demonstration of technological advancement in land surveying like use of drones, GNSS Rovers etc. Drone flying was one of the main features at the national launch at Raisen and in other ULBs.

     

    The function was presided over by Dr Mohan Yadav, Chief Minister of Madhya Pradesh. The event was also graced by Dr Chandrashekhar Pemmasani, Minister of State for Rural Development and Communications, Government of India, Shri Prahlad Singh Patel, Minister for Panchayati Raj and Rural Development, Madhya Pradesh, Shri Karan Singh Verma, Revenue Minister,  Madhya Pradesh, Shri Narayan Singh Panwar, Minister for Fishermen Welfare and Fisheries Development Department, Madhya Pradesh, MLA, Sanchi,  Shri Prabhu Ram Chaudhary, Shri Manoj Joshi, Secretary,  Department of Land Resources, Government of India and other officers from Government of India and Madhya Pradesh State Government. People from across  Madhya Pradesh and other parts of the country was present at the function.

     

    The participating ULBs and departments across the States and UTs have given wide publicity to the NAKSHA programme for creating awareness about the aim, objective and the benefits of the programme, which includes creation and updation of land records in urban and peri urban areas thereby empowering citizens, improving ease of living, enhancing urban planning, and reducing land-related disputes. The action under the programme also includes establishing IT-based system for property record administration to foster transparency, efficiency, and support sustainable development.

     

     

    *****

    MG/RN

    (Release ID: 2104583) Visitor Counter : 37

    MIL OSI Asia Pacific News –

    February 20, 2025
  • MIL-OSI United Kingdom: Getting help with Council Tax and changing the way you pay

    Source: City of Coventry

    Approximately 67 per cent of households in the city pay by Direct Debit, which is the easiest way to pay your Council Tax, especially if you’re worried about forgetting to pay.

    Instead of making the payment directly, Direct Debit means the Council take the amount out of a person’s bank account, when it is due.

    It also means the customer is protected by the Direct Debit Guarantee. If they wish to change the way that they pay and switch to Direct Debit the online instruction is simple to complete.

    For anyone who currently pays their Council Tax in 10 instalments and want to switch to 12, this can be requested by completing this quick form.

    A change of circumstance

    The Council also want people to get in touch if their circumstances have changed by applying to us for a Council Tax Discount.

    Anyone eligible will get a discount on their bill. For example, if just one person is living in the household – where before there was two or more – the bill will be reduced by 25 per cent.

    Also, people who are claiming Universal Credit or other benefits may not automatically receive council tax support, but they can make a claim to ensure they don’t pay more than they need to. Make a claim for council tax support or for more information.

    Cllr Richard Brown, Cabinet Member for Finance, said:

    “It’s important that people contact us if they want to change the way they pay, can’t afford to pay or have a change of circumstances when it comes to paying Council Tax.

    “Most people find it easiest to pay by Direct Debit but if you don’t it is quite easy to switch. Also, I’d encourage anyone who may have a query to get in touch and if anyone is eligible for support with a reduction on their bill they can get help.”

    Anyone who may no longer want to receive a paper copy bill can visit Council Tax – Sign up to paperless billing – Data protection – Coventry City Council

    Published: Wednesday, 19th February 2025

    MIL OSI United Kingdom –

    February 20, 2025
  • MIL-OSI: Global-e Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    PETAH-TIKVA, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Global-e Online Ltd. (Nasdaq: GLBE) the platform powering global direct-to-consumer e-commerce, today reported financial results for the fourth quarter of 2024 and full year 2024.

    “2024 was yet another record-breaking year for Global-e, and it came to a great close with a fourth quarter which was our strongest quarter ever, as we continued to execute on our strategy and further solidify Global-e’s leadership position in the global e-commerce space,” said Amir Schlachet, Founder and CEO of Global-e. “In addition, we achieved two important financial milestones during the quarter. For the first time in our journey, we crossed the 20% Adjusted EBITDA Margin mark, which was the long-term target we set for ourselves at the IPO, and we reached GAAP profitability for the first time as a public company; a testament to our relentless focus on delivering fast yet durable growth.”

    “As we head into 2025, we remain as committed as ever to continue on our growth path, deliver more cutting-edge and market-leading solutions to our merchants and seize more and more of the great opportunities that lie ahead of us in the world of global e-commerce. In 2025, we also expect to achieve three additional key financial milestones: surpass the 20% Adjusted EBITDA Margin mark on a full year basis, achieve annual GAAP profitability, and most importantly, for the first time, cross an annual run-rate of $1 billion in Revenues.”

    Q4 2024 Financial Results

    • GMV1 in the fourth quarter of 2024 was $1,713 million, an increase of 44% year over year
    • Revenue in the fourth quarter of 2024 was $262.9 million, an increase of 42% year over year, of which service fees revenue was $117.3 million and fulfillment services revenue was $145.6 million
    • Non-GAAP gross profit2 in the fourth quarter of 2024 was $120.9 million, an increase of 53% year over year. GAAP gross profit in the fourth quarter of 2024 was $118.7 million
    • Non-GAAP gross margin2 in the fourth quarter of 2024 was 46%, an increase of 330 basis points from 42.7% in the fourth quarter of 2023. GAAP gross margin in the fourth quarter of 2024 was 45.1%
    • Adjusted EBITDA3 in the fourth quarter of 2024 was $57.1 million compared to $35.2 million in the fourth quarter of 2023, an increase of 62% year over year
    • Net profit in the fourth quarter of 2024 was $1.5 million
    • Net cash provided by operating activities in the fourth quarter of 2024 was $129.3 million, while capital expenditures totaled $0.5 million, leading to free cash flow of $128.8 million

    FY 2024 Financial Results

    • GMV1 for the full year was $4,858 million, an increase of 37% year over year
    • Revenue for the full year was $752.8 million, an increase of 32% year over year, of which service fees revenue was $350.3 million and fulfillment services revenue was $402.5 million
    • Non-GAAP gross profit2 for the full year was $349.4 million, an increase of 43% year over year. GAAP gross profit for the full year was $339.4 million
    • Non-GAAP gross margin2 for the full year was 46.4%, an increase of 350 basis points from 42.9% in 2023. GAAP gross margin for the full year was 45.1%
    • Adjusted EBITDA3 for the full year was $140.8 million compared to $92.7 million in 2023, an increase of 51.8% year over year
    • Net loss for the full year was $75.5 million
    • Net cash provided by operating activities in the full year was $169.4 million, while capital expenditures totaled $2.3 million, leading to free cash flow of $167.1 million

    Recent Business Highlights

    • Throughout 2024, our existing merchant base continued to stay and grow with us, as reflected in our annual enterprise NDR rate of 119% and GDR rate of 93.5%. GDR and NDR were negatively impacted by the out of the ordinary bankruptcy of Ted Baker and by several Borderfree merchants that chose not to re-platform to the Global-e platform. NDR and GDR excluding the out of the ordinary churn for 2024 is close to 123% and 97%, respectively
    • Recently launched with Logitech, one of the world’s largest and most innovative providers of computer peripherals and input devices, gaming accessories, audio and video gear and smart home device
    • On-boarded many additional new merchants located around the globe and trading in various verticals, including:
      • North America – shapewear brand Spanx, Thursday Boots, and the web store of famous fashion designer Tom Ford
      • UK and Europe – Spanish brand Tous, Italian fashion brand Slowear, UK footwear brand Phoebe Philo, German brand IvyOak, Swiss running gear brand Compressport, famous Austrian lingerie brand Triumph, French brands ZAPA and MOLLI, and the Finish brand HURTTA
      • APAC – Japanese brands Komehyo, one of Japan’s largest retailers of second-hand goods, Kyoto-based wristwatch brand Kuoe, novelty brands Mofusand and Taito, and the tailored shirt brand Kamakura Shirts, as well as the renowned Korean cosmetics brand Depology, and Australian fashion brands Zoe Kratzmann and SECONDLEFT
    • Expanded to new lanes with existing merchants – added Romania and Croatia to the markets we operate for Adidas, went live with a new outlet site for John Smedley, and added Strellson, the third brand to go live with us out of the Swiss Holy Fashion Group
    • Shopify Managed Markets – continued joint work with Shopify to add new features and functionalities to the Managed Markets offering, aimed at making it applicable to a wider range of merchants on the Shopify platform

    Q1 2025 and Full Year Outlook

    Global-e is introducing first quarter and full year guidance as follows:

        Q12025   FY 2025
        (in millions)
    GMV(1) $1,210 – $1,250   $6,190 – $6,490
    Revenue $184.5 – $191.5   $917 – $967
    Adjusted EBITDA(3) $29.5 – $33.5   $179 – $199

    1 Gross Merchandise Value (GMV) is a key operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
    2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
    3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.

    Conference Call Information

    Global-e will host a conference call at 8:00 a.m. ET on Wednesday, February 19, 2025.
    The call will be available, live, to interested parties by dialing:

    United States/Canada Toll Free:  1-800-717-1738
    International Toll: 1-646-307-1865

    A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations

    Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.

    Non-GAAP Financial Measures and Key Operating Metrics

    To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including:

    • Non-GAAP gross profit, which Global-e defines as gross profit adjusted for amortization of acquired intangibles. Non-GAAP gross margin is calculated as Non-GAAP gross profit divided by revenues
    • Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles and merger related contingent consideration.
    • Free cash flow, which Global-e defines as net cash provided by operating activities less purchase of property and equipment.

    Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.

    The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance.

    Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

    For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

    Cautionary Note Regarding Forward Looking Statements

    This press release contains estimates and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future strategy and projected revenue, GMV, Adjusted EBITDA and other future financial and operational results, growth strategy and plans and objectives of management for future operations, including, among others, expansion in new and existing markets, the launch of large enterprise merchants, and our ongoing partnership with Shopify, are forward-looking statements. As the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, our rapid growth and growth rates in recent periods may not be indicative of future growth; the ability to retain merchants or the GMV generated by such merchants; the ability to retain existing, and attract new merchants; our business acquisitions and ability to effectively integrate acquired businesses; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platforms to meet those needs; our ability to implement and use artificial intelligence and machine learning technologies successfully; our ability to compete in our industry; our reliance on third-parties, including our ability to realize the benefits of any strategic alliances, joint ventures, or partnership arrangements and to integrate our platforms with third-party platforms; our ability to develop or maintain the functionality of our platforms, including real or perceived errors, failures, vulnerabilities, or bugs in our platforms; our history of net losses; our ability to manage our growth and manage expansion into additional markets; increased attention to ESG matters and our ability to manage such matters; our ability to accommodate increased volumes during peak seasons and events; our ability to effectively expand our marketing and sales capabilities; our expectations regarding our revenue, expenses and operations; our ability to operate internationally; our reliance on third-party services, including third-party providers of cross-docking services and third-party data centers, in our platforms and services and harm to our reputation by our merchants’ or third-party service providers’ unethical business practices; our ability to adapt to changes in mobile devices, systems, applications, or web browsers that may degrade the functionality of our platforms; our operation as a merchant of record for sales conducted using our platform; regulatory requirements and additional fees related to payment transactions through our e-commerce platforms could be costly and difficult to comply with; compliance and third-party risks related to anti-money laundering, anti-corruption, anti-bribery, regulations, economic sanctions and export control laws and import regulations and restrictions; our business’s reliance on the personal importation model; our ability to securely store personal information of merchants and shoppers; increases in shipping rates; fluctuations in the exchange rate of foreign currencies has impacted and could continue to impact our results of operations; our ability to offer high quality support; our ability to expand the number of merchants using our platforms and increase our GMV and to enhance our reputation and awareness of our platforms; our dependency on the continued use of the internet for commerce; our ability to adapt to emerging or evolving regulatory developments, changing laws, regulations, standards and technological changes related to privacy, data protection, data security and machine learning technology and generative artificial intelligence evolves; the effect of the situation in Ukraine on our business, financial condition and results of operations; our role in the fulfilment chain of the merchants, which may cause third parties to confuse us with the merchants; our ability to establish and protect intellectual property rights; and our use of open-source software which may pose particular risks to our proprietary software technologies; our dependency on our executive officers and other key employees and our ability to hire and retain skilled key personnel, including our ability to enforce non-compete agreements we enter into with our employees; litigation for a variety of claims which we may be subject to; the adoption by merchants of a direct to consumer model; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; our ability to maintain our corporate culture; our ability to maintain an effective system of disclosure controls and internal control over financial reporting; our ability to accurately estimate judgments relating to our critical accounting policies; changes in tax laws or regulations to which we are subject, including the enactment of legislation implementing changes in taxation of international business activities and the adoption of other corporate tax reform policies; requirements to collect sales or other taxes relating to the use of our platforms and services in jurisdictions where we have not historically done so; global events such as war, health pandemics, climate change, macroeconomic events and the recent economic slowdown; risks relating to our ordinary shares, including our share price, the concentration of our share ownership with insiders, our status as a foreign private issuer, provisions of Israeli law and our amended and restated articles of association and actions of activist shareholders; risks related to our incorporation and location in Israel, including risks related to the ongoing war and related hostilities; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

    About Global-E Online Ltd.

    Global-e (Nasdaq: GLBE) is the world’s leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e’s end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com.

    Investor Contact:
    Erica Mannion or Mike Funari
    Sapphire Investor Relations, LLC
    IR@global-e.com 
    +1 617-542-6180

    Press Contact:
    Sarah Schloss
    Headline Media
    Globale@headline.media 
    +1 786-233-7684 

    Global-E Online Ltd.
    CONSOLIDATED BALANCE SHEETS
    (In thousands)
     
        Period Ended  
        December 31,     December 31,  
        2023     2024  
              (Unaudited)  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 200,081     $ 250,773  
    Short-term deposits     96,939       187,322  
    Accounts receivable, net     27,841       41,171  
    Prepaid expenses and other current assets     63,967       84,613  
    Marketable securities     20,403       36,345  
    Funds receivable, including cash in banks     111,232       122,984  
    Total current assets     520,463       723,208  
    Property and equipment, net     10,236       10,440  
    Operating lease right-of-use assets     23,052       24,429  
    Long term deposits     3,552       3,786  
    Deferred contract acquisition costs, noncurrent     2,668       3,787  
    Other assets, noncurrent     4,078       4,527  
    Commercial agreement asset   192,721       66,527  
    Goodwill     367,566       367,566  
    Intangible assets     78,024       59,212  
    Total long-term assets     681,897       540,274  
    Total assets   $ 1,202,360     $ 1,263,482  
    Liabilities and Shareholders’ Equity                
    Current liabilities:                
    Accounts payable   $ 50,943     $ 79,559  
    Accrued expenses and other current liabilities     107,306       141,551  
    Funds payable to Customers     111,232       122,984  
    Short term operating lease liabilities     4,031       4,347  
    Total current liabilities     273,512       348,441  
    Long-term liabilities:                
    Deferred tax liabilities     6,507       –  
    Long term operating lease liabilities     19,291       20,510  
    Other long-term liabilities     1,071       1,098  
    Total liabilities   $ 300,381     $ 370,049  
                     
    Shareholders’ deficit:                
    Share capital and additional paid-in capital     1,360,250       1,425,317  
    Accumulated comprehensive income     (1,420 )     515  
    Accumulated deficit     (456,851 )     (532,399 )
    Total shareholders’ (deficit) equity     901,979       893,433  
    Total liabilities and shareholders’ equity   $ 1,202,360     $ 1,263,482  
    Global-E Online Ltd.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except share and per share data)
     
        Three Months Ended   Year Ended  
        December 31,   December 31,  
        2023     2024     2023       2024  
        (Unaudited)           (Unaudited)  
    Revenue   $ 185,401     $ 262,912     $ 569,946       $ 752,764  
    Cost of revenue     109,080       144,253       336,343         413,331  
    Gross profit     76,321       118,659       233,603         339,433  
                                     
    Operating expenses:                                
    Research and development     25,169       28,284       97,568         105,487  
    Sales and marketing     58,756       70,936       217,035         250,661  
    General and administrative     15,451       14,257       56,059         51,213  
    Total operating expenses, net     99,376       113,477       370,662         407,361  
    Operating profit (loss)     (23,055 )     5,182       (137,059 )       (67,928 )
    Financial expenses (income), net     (5,010 )     6,073       (5,262 )       11,465  
    Loss before income taxes     (18,045 )     (891 )     (131,797 )       (79,393 )
    Income tax (benefit) expenses     4,055       (2,400 )     2,008         (3,845 )
    Net profit (loss) attributable to ordinary shareholders   $ (22,100 )   $ 1,509     $ (133,805 )     $ (75,548 )
    Net profit (loss) per share attributable to ordinary shareholders, basic   $ (0.13 )   $ 0.01     $ (0.81 )     $ (0.45 )
    Net profit (loss) per share attributable to ordinary shareholders, diluted   $ (0.13 )   $ 0.01     $ (0.81 )     $ (0.45 )
    Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic     165,626,904       168,419,800       164,353,909         167,323,350  
    Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted     165,626,904       175,674,929       164,353,909         167,323,350  
    Global-E Online Ltd.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
        Three Months Ended     Year Ended
        December 31,     December 31,
        2023     2024     2023     2024  
        (Unaudited)             (Unaudited)  
    Operating activities                                
    Net profit (loss)   $ (22,100 )   $ 1,509     $ (133,805 )   $ (75,548 )
    Adjustments to reconcile net profit (loss) to net cash provided by operating activities:                                
    Depreciation and amortization     489       547       1,788       2,131  
    Share-based compensation expenses     12,180       9,538       44,960       39,158  
    Commercial agreement asset     37,433       37,433       150,451       148,594  
    Amortization of intangible assets     5,091       4,402       20,434       18,812  
    Unrealized loss (gain) on foreign currency     (3,011 )     3,554       (1,901 )     4,468  
    Changes in accrued interest and exchange rate on short-term deposits     72       (1,373 )     (416 )     (1,329 )
    Changes in accrued interest and exchange rate on long-term deposits     (144 )     364       (255 )     200  
    Accounts receivable     (14,390 )     15,925       (11,417 )     (13,330 )
    Prepaid expenses and other assets     61       (24,164 )     (11,736 )     (18,019 )
    Funds receivable     (9,038 )     8,726       (11,074 )     (3,205 )
    Long-term receivables     (1,497 )     51       (339 )   551  
    Funds payable to customers     40,817       2,564       33,107       11,752  
    Operating lease ROU assets     786       991       3,230       3,691  
    Deferred contract acquisition costs     (772 )     (322 )     (1,207 )     (1,382 )
    Accounts payable     18,438       37,176       (1,277 )     28,617  
    Accrued expenses and other liabilities     25,345       35,945       30,625       34,272  
    Deferred taxes     3,635       (2,592 )     120       (6,507 )
    Operating lease liabilities     99       (987 )     (3,067 )     (3,533 )
    Net cash provided by operating activities     93,494       129,287       108,222       169,393  
    Investing activities                                
    Investment in marketable securities     (851 )     (18,331 )     (3,728 )     (21,128 )
    Proceeds from marketable securities   –     2,028         671       4,988  
    Investment in short-term deposits     (43,250 )     (77,848 )     (175,237 )     (269,601 )
    Proceeds from short-term deposits     34,318       22,298       125,068       180,548  
    Purchases of long-term investments     (4 )     (307 )     (82 )     (1,459 )
    Proceeds from long-term deposits     10       24       10       24  
    Purchases of property and equipment     (926 )     (482 )     (1,741)       (2,335 )
    Net cash used in investing activities     (10,703 )     (72,618 )     (55,039 )     (108,963 )
    Financing activities                                
    Proceeds from exercise of Warrants to ordinary shares     –     3       22     5  
    Proceeds from exercise of share options     244       1,632       1,969       3,271  
    Net cash provided by financing activities     244       1,635       1,991       3,276  
    Exchange rate differences on balances of cash, cash equivalents and restricted cash     3,011       (3,554 )     1,901       (4,468 )
    Net Increase in cash, cash equivalents, and restricted cash     86,046       54,750       57,075       59,238  
    Cash and cash equivalents and restricted cash—beginning of period     182,551       273,086       211,522       268,597  
    Cash and cash equivalents and restricted cash—end of period   $ 268,597     $ 327,835     $ 268,597     $ 327,835  
    Global-E Online Ltd.
    SELECTED OTHER DATA
    (In thousands)
     
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024  
        (Unaudited)     (Unaudited)  
    Key performance metrics            
    Gross Merchandise Value     1,189,467               1,712,903               3,557,444               4,857,970          
    Adjusted EBITDA (a)     35,178               57,102               92,735               140,767          
                                                                     
    Revenue by Category                                                                
    Service fees     89,936       49 %     117,268       45 %     262,255       46 %     350,311       47 %
    Fulfillment services     95,465       51 %     145,644       55 %     307,692       54 %     402,453       53 %
    Total revenue   $ 185,401       100 %   $ 262,912       100 %   $ 569,946       100 %   $ 752,764       100 %
                                                                     
    Revenue by merchant outbound region                                                                
    United States     94,887       51 %     146,250       56 %     285,619       50 %     399,596       53 %
    United Kingdom     54,962       30 %     55,807       21 %     173,584       30 %     182,904       24 %
    European Union     29,421       16 %     44,469       17 %     92,566       16 %     125,547       17 %
    Israel     479       0 %     1,671       1 %     1,806       0 %     2,746       0 %
    Other   5,652     3 %     14,715       5 %   16,371     3 %     41,971       6 %
    Total revenue   $ 185,401       100 %   $ 262,912       100 %   $ 569,946       100 %   $ 752,764       100 %

    (a) See reconciliation to adjusted EBITDA table

    Global-E Online Ltd.
    RECONCILIATION TO Non-GAAP GROSS PROFIT
    (In thousands)
     
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024  
      (Unaudited)
    Gross Profit     76,321       118,659       233,603       339,433  
                                     
    Amortization of acquired intangibles included in cost of revenue     2,796       2,198       11,183       9,994  
    Non-GAAP gross profit     79,117       120,857       244,786       349,427  
    Global-E Online Ltd.
    RECONCILIATION TO ADJUSTED EBITDA
    (In thousands)
     
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024    
        (Unaudited)  
    Operating profit (loss)     (23,055 )     5,182       (137,059 )     (67,928 )  
    (1) Stock-based compensation:                                
    Cost of revenue     186       275       639       929    
    Research and development     6,962       4,153       26,266       17,291    
    Selling and marketing     1,238       1,528       4,259       5,836    
    General and administrative     3,794       3,582       13,796       15,102    
    Total stock-based compensation     12,180       9,538       44,960       39,158    
                                     
    (2) Depreciation and amortization     489       547       1,788       2,131    
                                     
    (3) Commercial agreement asset amortization   37,433       37,433     150,451       148,594    
                                 
    (4) Amortization of acquired intangibles   5,091       4,402     20,434       18,812    
                                 
    (5) Merger related contingent consideration   3,040       –     12,161       –    
                                 
    Adjusted EBITDA     35,178       57,102       92,735       140,767    
    Global-E Online Ltd.
    RECONCILIATION TO FREE CASH FLOW
    (In thousands)
        Three Months Ended   Year Ended
        December 31,   December 31,
        2023     2024     2023     2024  
      (Unaudited)
    Net cash provided by operating activities     93,434       129,287       108,222       169,393  
    Less:                          
    Purchase of property and equipment     (926 )     (482 )     (1,741 )     (2,335 )
    Free cash flow     92,508       128,805       106,481       167,058  

    The MIL Network –

    February 20, 2025
  • MIL-OSI: Enlight Renewable Energy Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

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

    TEL AVIV, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Enlight Renewable Energy Ltd. (NASDAQ: ENLT, TASE: ENLT) today reported financial results for the fourth quarter and full year ending December 31, 2024. The Company’s earnings conference call and webcast will be held today at 8:00 AM ET. Registration links to both the call and the webcast can be found at the end of this earnings release.

    Financial Highlights

    Full year 2024

    • Revenues and income of $399m, up 53% year over year
    • Adjusted EBITDA1 of $289m, up 49% year over year
    • Net income of $67m, down 32% year over year
    • Cash flow from operations of $193, up 29% year over year

    3 months ending December 31, 2024

    • Revenues and income of $104m, up 35% year over year
    • Adjusted EBITDA1 of $65m, up 31% year over year
    • Net income of $8m, down 48% year over year
    • Cash flow from operations of $36m, up 49% year over year

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

      For the twelve months ended   For the three months ended
     ($ millions) 31/12/2024 31/12/2023 % change 31/12/2024 31/12/2023 % change
    Revenue and Income 399 261 53% 104 77 35%
    Net Income 67 98 (32%) 8 16 (48%)
    Adjusted EBITDA 289 194 49% 65 50 31%
    Cash Flow from Operating Activities 193 150 29% 36 24 49%
    • In 2023 the net income contained substantial one-time items
    • A detailed analysis of financial results appears below

    2024 Guidance vs Actual Results

    • Reported revenues and income for 2024 was 15% higher than the Company’s original guidance at the midpoint.
    • Reported Adjusted EBITDA for 2024 was 18% higher than the Company’s original guidance at the midpoint.

    Revenues and Income and Adjusted EBITDA includes $21m of U.S. tax benefits

    “We are proud to conclude 2024 with outstanding financial results that surpassed both our targets and analysts’ forecasts,” said Gilad Yavetz, CEO of Enlight Renewable Energy.

    “Enlight continues to grow thanks to its diversified and innovative operations, spanning three continents and employing the three main technologies of the industry: solar, wind, and energy storage.

    “The year 2025 represents another leap forward for us, as a massive capacity of 4.7 FGW – with a total investment of $5.5bn – will be under various stages of construction. Together with the Company’s operating portfolio, this will secure approximately 90% of the Company’s ambitious growth plan: to reach operating capacity of 8.6 FGW by the end of 2027. This plan will bring Enlight to an annual revenue rate of over $1bn by 2028, tripling the business in just three years.

    “We expect that the average return on equity for the vast asset portfolio that will become operational by 2027 will exceed 15%. Our three-year growth plan is already reflected in our 2025 guidance: we project revenues and income in the range of $490-510 million and Adjusted EBITDA in the range of $360-380 million, a 25% increase.”

    Portfolio Review

    • Enlight’s total portfolio is comprised of 20 GW of generation capacity and 35.8 GWh storage (30.2 FGW2)
    • Of this, the Mature portfolio component (including operating projects, projects under construction or pre-construction) contains 6.1 GW generation capacity and 8.6 GWh of storage (8.6 FGW)
    • Within the Mature portfolio component, the operating component has 2.5 GW of generation capacity and 1.9 GWh of storage (3.0 FGW)

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

    Component Status FGW2 Annual recurring revenues ($m)3
    Operating Commercial operation 3.0 ~5004
    Under Construction Under construction 1.8 ~175
    Pre-Construction 0-12 months to start of construction 3.8 ~385
    Total Mature Portfolio Mature 8.6 1,060~
    Advanced Development 13-24 months to start of construction 7 –
    Development 2+ years to start of construction 14.7 –
    Total Portfolio   30.2 –

    ________________________
    2 FGW (Factored GW) is a consolidated metric combining generation and storage capacity into a uniform figure based on the ratio of construction costs. The company’s current weighted average construction cost ratio is 3.5 GWh of storage per 1 GW of generation: FGW = GW + GWh / 3.5
    3
    Does not include income from tax benefits for under construction and pre-construction projects.

    4 Based on the midpoint of 2025 guidance.

    • Operating component of the portfolio: 3 FGW
      • Start of commercial operations of 1.1 FGW in 2024, including projects Atrisco in the U.S., Pupin and Tapolca in Europe, the Israel Solar and Storage Cluster in MENA. These additions contribute approximately $100m to the annual revenue run rate.
    • Under Construction component of the portfolio: 1.8 FGW
      • Consists of three projects in the U.S. with a total capacity of 1.4 FGW; the Gecama Solar project in Spain with a capacity of 0.3 FGW; and a solar and storage cluster in Israel. 35% of the cluster is expected to reach operations in 2025, with the rest commissioning in 2026.
      • Projects under construction are expected to contribute $175m to the annual revenue run rate during their first full year of operation.
    • Pre-construction component of the portfolio: 3.8 FGW
      • Two mega projects in the U.S., Snowflake and CO Bar, with a combined capacity of 2.6 FGW will begin construction in 2025 and are expected to contribute $246m to revenues on an annualized basis.
      • Nardo, a stand alone storage project in Italy with a capacity of 0.25 FGW, is expected to begin construction in 2H25 and contribute $31m to revenues on an annualized basis.
    • Advanced Development component of the portfolio component: 7 FGW
      • 5.3 FGW in the U.S., with 100% of the capacity having passed completion of the System Impact Study, the most important study of the grid connection process, significantly de-risking the portfolio.
      • The U.S. portfolio includes several mega-projects and follow-ons to Mature projects, such as Cedar Island (1.4 FGW), Snowflake B (1.2 FGW), and Atrisco 2 (0.7 FGW).
      • These projects reflect the Company’s “Connect and Expand” strategy, leveraging existing grid infrastructure with the development of new ones, thereby reducing construction costs and project risks while improving project returns.
      • 0.7 FGW in Europe, focused on Italy, Spain, and Croatia.
      • 1 FGW in MENA, focused on solar and storage projects and stand alone storage facilities, including approximately 0.5 FGW that won availability tariffs as part of the Israel Electricity Authority’s first high voltage storage availability tariff tender.
    • Development component of the portfolio: 14.7 FGW
      • 10 FGW in the U.S. with broad geographic presence, including the PJM, WECC, SPP and MISO regions.
      • 2.7 FGW in Europe, focused on Italy, Spain, Croatia and entry into stand-alone storage operations in Poland.
      • 2 FGW in MENA, focused on solar combined storage projects and stand alone storage facilities.

    Projected COD Timeline for the Mature Portfolio5

    ________________________
    5 Additional projects currently classified in the Advanced Development portfolio are expected to reach commercial operation by 2027, however they are not included in this forecast

    Mature Portfolio Components Expected to Generate Annualized Revenues of Over $1bn6

    All the projects in the plan are expected to be completed by the end of 2027

    ________________________
    6 The projection is based on 2025 guidance, and only includes additional revenue growth from the sale of electricity from projects under construction and in pre-construction status.

    Financing Activities

    • Financial closings totaling $1.1bn in Europe and the US occurred during 2024, supporting the construction of projects with 470 MW and 2,100 MWh capacity.
    • Expansion of Series D bonds totaling $178m to finance the Company’s growth.
    • Sale of 44% of the Sunlight cluster for $50m cash at a valuation of $114m, generating a profit of up to $94m to be recognized in the first quarter of 2025. The cluster represents approximately 1% of the Company’s total portfolio.
    • As of the date of this report, the Company maintains $350m of revolving credit facilities, of which $70m have been drawn.

    2025 Guidance

    Construction and commissioning

    • Expected commissioning of 440 MW and 1.1 GWh of capacity, which is expected to add approximately $130m to annualized revenues and $105m annualized EBITDA, starting in 2026.
    • Starting construction on 1.8 GW and 3.9 GWh of capacity, which is expected to add over $300m in annualized revenues and over $250m in annualized EBITDA gradually through 2026-2027.

    Financial guidance

    • Total revenues and income7 are expected to range between $490m and $510m, a 25% increase (from the midpoint) from 2024 results. Of the projected revenues and income, 38% are expected to be denominated in ILS, 35% in EUR, and 27% in USD.
    • Adjusted EBITDA8 is expected to range between $360m and $380m, a 28% increase (from the midpoint) from 2024 results.
    • Approximately 90% of the electricity volumes expected to be generated in 2025 will be sold at fixed prices through PPAs or hedges.

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

    Financial Results Analysis

    Revenue & Income by Segment
    ($ thousands) For the twelve months ended   For the three months ended  
    Segment 31/12/2024 31/12/2023 Change % 31/12/2024 31/12/2023 Change %
    MENA 155,693 67,687 130% 34,086 20,738 64%
    Europe 197,143 177,471 11% 49,979 50,770 (2%)
    U.S. 36,608 7,712 375% 17,894 3,571 401%
    Other 9,351 8,270 13% 2,143 2,009 7%
    Total Revenue & Income 398,795 261,140 53% 104,102 77,088 35%
                 

    Revenues & Income

    In the fourth quarter of 2024, the Company’s total revenues and income increased to $104m, up from $77m last year, a growth rate of 35% year over year. This was composed of revenues from the sale of electricity, which rose 26% to $93m compared to $74m in the same period of 2023, as well as recognition of $11m in income from tax benefits, up 230% compared to $3m in 4Q23.

    The Company benefited from the revenue contribution of newly operational projects. Since the fourth quarter of 2023, 650 MW and 1,600 MWh of projects were connected to the grid and began selling electricity, including seven of the Israel Solar and Storage Cluster units in Israel, Atrisco in the U.S, Pupin in Serbia, and Tapolca in Hungary. The most important increases in revenue from the sale of electricity originated at the Israel Solar and Storage Cluster, which added $9m, followed by Atrisco, which added $6m in. In total, new projects contributed $18m to revenues from the sale of electricity

    Revenues and income were distributed between MENA, Europe, and the US, with 34% denominated in Israeli Shekel, 47% in Euros, and 18% denominated in US Dollars.

    Net Income

    In the fourth quarter, the Company’s net income amounted to $8m compared to $16m last year, a decrease of 48% year over year. In 4Q23 the Company recorded a $12m net profit stemming from the recalculation of earnout payments linked to the acquisition of Clenera. Adjusting for this figure, the net income in 4Q23 was $4m, implying year-on-year growth of 90%.

    Adjusted EBITDA9

    In the fourth quarter of 2024, the Company’s Adjusted EBITDA grew by 31% to $65m compared to $50m for the same period in 2023. The increase in Adjusted EBITDA was driven by the same factors that drove the increase in revenues and income, namely new projects and the recognition of higher amounts of tax benefits. This was offset by an additional $6m in higher operating expenses linked to new projects, while company overheads rose by $5m year-on-year.

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

    Conference Call Information

    Enlight plans to hold its Fourth Quarter 2024 Conference Call and Webcast on Wednesday, February 19, 2025 at 8:00 a.m. ET to review its financial results and business outlook. Management will deliver prepared remarks followed by a question-and-answer session. Participants can join by dial-in or webcast:

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

    Supplemental Financial and Other Information

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

    Non-IFRS Financial Measures

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

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

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

    Special Note Regarding Forward-Looking Statements

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

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

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

    About Enlight

    Founded in 2008, Enlight develops, finances, constructs, owns, and operates utility-scale renewable energy projects. Enlight operates across the three largest renewable segments today: solar, wind and energy storage. A global platform, Enlight operates in the United States, Israel and 9 European countries. Enlight has been traded on the Tel Aviv Stock Exchange since 2010 (TASE: ENLT) and completed its U.S. IPO (Nasdaq: ENLT) in 2023.

    Company Contacts

    Yonah Weisz
    Director IR
    investors@enlightenergy.co.il

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

    Appendix 1 – Financial information

    Consolidated Statements of Income
           
        For the year ended at
    December 31
        2024   2023(*)
        USD in   USD in
        thousands   thousands
    Revenues   377,935   255,702
    Tax benefits   20,860   5,438
    Total revenues and income   398,795   261,140
             
    Cost of sales (**)   (80,696)   (52,794)
    Depreciation and amortization   (108,889)   (65,796)
    General and administrative expenses   (38,847)   (31,356)
    Development expenses   (11,601)   (6,347)
    Total operating expenses   (240,033)   (156,293)
    Gains from projects disposals   601   9,846
    Other income, net   16,172   43,450
    Operating profit   175,535   158,143
             
    Finance income   20,439   36,799
    Finance expenses   (107,844)   (68,143)
    Total finance expenses, net   (87,405)   (31,344)
             
    Profit before tax and equity loss   88,130   126,799
    Share of loss of equity accounted investees   (3,350)   (330)
    Profit before income taxes   84,780   126,469
    Taxes on income   (18,275)   (28,428)
    Profit for the year   66,505   98,041
             
    Profit for the year attributed to:        
    Owners of the Company   44,209   70,924
    Non-controlling interests   22,296   27,117
        66,505   98,041
    Earnings per ordinary share (in USD) with a par value of        
    NIS 0.1, attributable to owners of the parent Company:        
    Basic earnings per share   0.37   0.61
    Diluted earnings per share   0.36   0.57
    Weighted average of share capital used in the        
    calculation of earnings:        
    Basic per share   118,293,556   115,721,346
    Diluted per share   123,312,565   123,861,293
     

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

    (**) Excluding depreciation and amortization

    Consolidated Statements of Financial Position as of        
        December 31   December 31
        2024   2023
        USD in   USD in
        Thousands   Thousands
    Assets        
             
    Current assets        
    Cash and cash equivalents   387,427   403,805
    Deposits in banks   –   5,308
    Restricted cash   100,090   142,695
    Trade receivables   50,692   43,100
    Other receivables   99,651   60,691
    Current maturities of contract assets   –   8,070
    Other financial assets   975   976
    Assets of disposal groups classified as held for sale   81,661   –
    Total current assets   720,496   664,645
             
    Non-current assets        
    Restricted cash   48,251   38,891
    Other long-term receivables   61,045   32,540
    Deferred costs in respect of projects   357,358   271,424
    Deferred borrowing costs   276   493
    Loans to investee entities   18,112   35,878
    Contract assets   –   91,346
    Fixed assets, net   3,699,192   2,947,369
    Intangible assets, net   291,442   287,961
    Deferred taxes assets   10,744   9,134
    Right-of-use asset, net   210,941   121,348
    Financial assets at fair value through profit or loss   69,216   53,466
    Other financial assets   59,812   79,426
    Total non-current assets   4,826,389   3,969,276
             
    Total assets   5,546,885   4,633,921
    Consolidated Statements of Financial Position as of (Cont.)         
        December 31   December 31
        2024   2023
        USD in   USD in
        Thousands   Thousands
    Liabilities and equity    
             
    Current liabilities      
    Credit and current maturities of loans from        
    banks and other financial institutions   212,246   324,666
    Trade payables 161,991   105,574
    Other payables 107,825   103,622
    Current maturities of debentures   44,962   26,233
    Current maturities of lease liability   10,240   8,113
    Financial liabilities through profit or loss   –   13,860
    Other financial liabilities   8,141   1,224
    Liabilities of disposal groups classified as held for sale   46,635   –
    Total current liabilities   592,040   583,292
             
    Non-current liabilities    
    Debentures 433,994   293,751
    Other financial liabilities   107,865   62,020
    Convertible debentures   133,056   130,566
    Loans from banks and other financial institutions   1,996,137   1,702,925
    Loans from non-controlling interests   75,598   92,750
    Financial liabilities through profit or loss   25,844   34,524
    Deferred taxes liabilities   41,792   44,941
    Employee benefits 1,215   4,784
    Lease liability 211,941   119,484
    Deferred income related to tax equity   403,384   60,880
    Asset retirement obligation   83,085   68,047
    Total non-current liabilities   3,513,911   2,614,672
             
    Total liabilities 4,105,951   3,197,964
             
    Equity        
    Ordinary share capital   3,308   3,293
    Share premium 1,028,532   1,028,532
    Capital reserves 25,273   57,730
    Proceeds on account of convertible options   15,494   15,494
    Accumulated profit 107,919   63,710
    Equity attributable to shareholders of the Company   1,180,526   1,168,759
    Non-controlling interests   260,408   267,198
    Total equity 1,440,934   1,435,957
    Total liabilities and equity   5,546,885   4,633,921
    Consolidated Statements of Cash Flows    
         
      For the year ended at
    December 31
      2024 2023
      USD in USD in
      Thousands Thousands
         
    Cash flows for operating activities    
    Profit for the period 66,505 98,041
         
    Income and expenses not associated with cash flows:    
    Depreciation and amortization 108,889 65,796
    Finance expenses, net 83,560 28,805
    Share-based compensation 8,360 4,970
    Taxes on income 18,275 28,428
    Tax benefits (20,860) (5,438)
    Other income, net (4,963) (46,991)
    Company’s share in losses of investee partnerships 3,350 330
      196,611 75,900
         
    Changes in assets and liabilities items:    
    Change in other receivables 12,261 (3,241)
    Change in trade receivables (9,892) (2,841)
    Change in other payables 294 6,382
    Change in trade payables 746 15,474
      3,409 15,774
         
    Interest receipts 12,684 12,490
    Interest paid (74,891) (54,469)
    Income Tax paid (11,246) (12,236)
    Repayment of contract assets – 14,120
         
    Net cash from operating activities 193,072 149,620
         
    Cash flows for investing activities    
    Sale (Acquisition) of consolidated entities, net 1,871 (6,975)
    Changes in restricted cash and bank deposits, net 29,959 (53,131)
    Purchase, development, and construction in respect of projects (899,257) (730,976)
    Loans provided and Investment in investees (26,444) (28,174)
    Payments on account of acquisition of consolidated entity (32,777) (5,728)
    Proceeds from sale (purchase) of financial assets measured at fair value     
    through profit or loss, net (14,719) 26,919
    Net cash used in investing activities (941,367) (798,065)
    Consolidated Statements of Cash Flows (Cont.)   
      For the year ended at
    December 31
      2024  2023 
      USD in USD in
      Thousands Thousands
         
    Cash flows from financing activities    
    Receipt of loans from banks and other financial institutions 939,627 623,927
    Repayment of loans from banks and other financial institutions (699,586) (203,499)
    Issuance of debentures 177,914 83,038
    Repayment of debentures (26,016) (14,735)
    Dividends and distributions by subsidiaries to non-controlling interests (25,534) (13,328)
    Proceeds from investments by tax-equity investors 410,845 198,758
    Repayment of tax equity investment (839) (82,721)
    Deferred borrowing costs (21,637) (1,984)
    Receipt of loans from non-controlling interests – 274
    Repayment of loans from non-controlling interests (2,960) (1,485)
    Increase in holding rights of consolidated entity (169) –
    Issuance of shares – 266,451
    Exercise of share options 15 9
    Repayment of lease liability (5,852) (4,848)
    Proceeds from investment in entities by non-controlling interest 179 5,448
         
    Net cash from financing activities 745,987 855,305
         
    Increase (Decrease) in cash and cash equivalents (2,308) 206,860
         
    Balance of cash and cash equivalents at beginning of period 403,805 193,869
         
    Changes in cash of disposal groups classified as held for sale (5,753) –
         
    Effect of exchange rate fluctuations on cash and cash equivalents (8,317) 3,076
         
    Cash and cash equivalents at end of period 387,427 403,805

    Information related to Segmental Reporting

      For the year ended December 31, 2024
      MENA(**)   Europe(**)   USA   Total reportable segments   Others   Total
      USD in thousands
    Revenues 155,693   197,143   15,748   368,584   9,351   377,935
    Tax benefits –   –   20,860   20,860   –   20,860
    Total revenues and income 155,693   197,143   36,608   389,444   9,351   377,935
                           
    Segment adjusted EBITDA 123,724   165,385   33,539   322,648   4,141   326,789
       
    Reconciliations of unallocated amounts:  
    Headquarter costs (*) (37,774)
    Intersegment profit 100
    Depreciation and amortization and share-based compensation (117,249)
    Other incomes not attributed to segments 3,669
    Operating profit 175,535
    Finance income 20,439
    Finance expenses (107,844)
    Share in the losses of equity accounted investees (3,350)
    Profit before income taxes 84,780
     

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

    (**) Due to the Company’s organizational restructuring, the Chief Operation Decision Maker (CODM) now reviews the group’s results by segmenting them into four business units: MENA (Middle East and North Africa), Europe, the US, and Management and Construction. Consequently, the Central/Eastern Europe and Western Europe segments have been consolidated into the “Europe” segment, and the Israel segment has been incorporated into the MENA segment. The comparative figures for the year ended December 31, 2023, have been updated accordingly.

    Information related to Segmental Reporting

      For the year ended December 31, 2023
      MENA   Europe   USA   Total reportable segments   Others   Total
      USD in thousands
    Revenues 67,687   177,471   2,274   247,432   8,270   255,702
    Tax benefits –   –   5,438   5,438   –   5,438
    Total revenues and income 67,687   177,471   7,712   252,870   8,270   261,140
                           
    Segment adjusted EBITDA 71,350   150,677   12,133   234,160   3,035   237,195
       
    Reconciliations of unallocated amounts:  
    Headquarter costs (*) (30,434)
    Intersegment profit 1,587
    Repayment of contract asset under concession arrangements (14,120)
    Depreciation and amortization and share-based compensation (70,766)
    Other incomes not attributed to segments 34,681
    Operating profit 158,143
    Finance income 36,799
    Finance expenses (68,143)
    Share in the losses of equity accounted investees (330)
    Profit before income taxes 126,469
     

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

    Appendix 2 – Reconciliations between Net Income to Adjusted EBITDA

    ($ thousands)   For the year ended   For the three months
        December 31   ended December 31
        2024   2023   2024   2023
    Net Income (loss)   66,505   98,041   8,372   16,202
    Depreciation and amortization   108,889   65,796   30,912   21,611
    Share based compensation   8,360   4,970   2,333   970
    Finance income   (20,439)   (36,799)   (2,140)   7,581
    Finance expenses   107,844   68,143   22,008   16,344
    Non-recurring other income (*)   (3,669)   (34,681)   –   (15,718)
    Share of losses of equity accounted investees   3,350   330   1,613   (137)
    Taxes on income   18,275   28,428   2,121   2,934
    Adjusted EBITDA   289,115   194,228   65,219   49,787
                     
    * For the purposes of calculating Adjusted EBITDA, compensation for inadequate performance of goods and services procured by the Company are included in other income, net.
       

    The Company has changed its presentation of its Income Statement, which includes the presentation of specified items that have been previously included within other income (i.e. tax equity). The Company believes that such presentation provides a more relevant information and better reflects the measurement of its financial performance. The Company applied such change retrospectively.

    Appendix 3 – Debentures Covenants

    Debentures Covenants

    As of December 31, 2024, the Company was in compliance with all of its financial covenants under the indenture for the Series C-F Debentures, based on having achieved the following in its consolidated financial results:

    Minimum equity
    The company’s equity shall be maintained at no less than NIS 200 million so long as debentures E remain outstanding, no less than NIS 375 million so long as debentures F remain outstanding, and NIS 1,250 million so long as debentures C and D remain outstanding.

    As of December 31, 2024, the company’s equity amounted to NIS 5,255 million.

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

    As of December 31, 2024, the net financial debt to net CAP ratio, as defined above, stands at 37%.

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

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

    As of December 31, 2024, the net financial debt to EBITDA ratio, as defined above, stands at 9.

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

    As of December 31, 2024, the equity to balance sheet ratio, as defined above, stands at 55%.

    Photos accompanying this announcement are available at:
    https://www.globenewswire.com/NewsRoom/AttachmentNg/16dfdaab-3b06-4494-a529-7e4b98cd6ad8

    https://www.globenewswire.com/NewsRoom/AttachmentNg/a4d568ee-77b0-4eab-b7ef-c865a4a26d0e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/ae07b0d5-09c7-404f-a71d-70494b2b64ca

    The MIL Network –

    February 20, 2025
  • MIL-OSI United Kingdom: UK House Price Index for December 2024

    Source: United Kingdom – Government Statements

    The UK HPI shows house price changes for England, Scotland, Wales and Northern Ireland.

    Tom Curtis/Shutterstock.com

    The December data shows:

    • on average, house prices have fallen by 0.1% since November 2024
    • there has been an annual price rise of 4.6% which makes the average property in the UK valued at £268,000

    England

    In England the December data shows, on average, house prices have not changed since November 2024. The annual price rise of 4.3% takes the average property value to £291,000.

    The regional data for England indicates that:

    • East of England experienced the most significant monthly increase with a movement of 0.6%
    • Yorkshire and the Humber saw the greatest monthly price fall, with a fall of -0.8%
    • the North East experienced the greatest annual price rise, up by 6.7%
    • London saw the lowest annual price growth, at 0%

    Price change by region for England

    Region Average price December 2024 Annual change % since December 2023 Monthly change % since November 2024
    East Midlands £242,000 5.3 0.5
    East of England £340,000 4.4 0.6
    London £549,000 0 -0.3
    North East £161,000 6.7 0.5
    North West £211,000 5.4 -0.4
    South East £384,000 4.4 0.6
    South West £306,000 3.8 -0.3
    West Midlands £244,000 4.2 -0.4
    Yorkshire and the Humber £204,000 5.9 -0.8

    Repossession sales by volume for England

    The lowest number of repossession sales in October 2024 was in East of England.

    The highest number of repossession sales in October  2024 was in the North East.

    Repossession sales October 2024
    East Midlands 6
    East of England 0
    London 11
    North East 13
    North West 21
    South East 8
    South West 2
    West Midlands 5
    Yorkshire and the Humber 11
    England 77

    Average price by property type for England

    Property type December 2024 December 2023 Difference %
    Detached £472,000 £451,000 4.7
    Semi-detached £286,000 £271,000 5.4
    Terraced £240,000 £229,000 4.6
    Flat/maisonette £225,000 £222,000 1.6
    All £291,000 £279,000 4.3

    Funding and buyer status for England

    Transaction type Average price December 2024 Annual price change % since December 2023 Monthly price change % since November 2024
    Cash £277,000 3.7 0
    Mortgage £296,000 4.5 0
    First-time buyer £244,000 4.5 -0.3
    Former owner occupier £352,000 1.8 -0.3

    Building status for England

    Building status* Average price October 2024 Annual price change % since October 2023 Monthly price change % since Setpember 2024
    New build £420,000 17.7 -1.4
    Existing resold property £285,000 1.8 -0.3

    *Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

    London

    London shows, on average, house prices decreased by 0.3% since November 2024. House prices have shown no annual change meaning the average price of a property is £549,000.

    Average price by property type for London

    Property type December 2024 December 2023 Difference %
    Detached £1,110,000 £1,113,000 -0.3
    Semi-detached £691,000 £681,000 1.6
    Terraced £617,000 £609,000 1.3
    Flat/maisonette £440,000 £445,000 -1.3
    All £549,000 £549,000 0

    Funding and buyer status for London

    Transaction type Average price December 2024 Annual price change % since December 2023 Monthly price change % since November 2024
    Cash £580,000 -2. -0.5
    Mortgage £543,000 0.8 -0.2
    First-time buyer £473,000 0.2 -0.4
    Former owner occupier £677,000 -0.4 -0.1

    Building status for London

    Building status* Average price October 2024 Annual price change % since October 2023 Monthly price change % since September 2024
    New build £566,000 13.4 -4.1
    Existing resold property £553,000 -0.9 -2.9

    *Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

    Wales

    Wales shows, on average, house prices fell by 0.5% since November 2024. An annual price increase of 3% takes the average property value to £208,000

    There were 4 repossession sales for Wales in October 2024.

    Average price by property type for Wales

    Property type December 2024 December 2023 Difference %
    Detached £325,000 £319,000 1.9
    Semi-detached £206,000 £199,000 3.6
    Terraced £166,000 £160,000 3.6
    Flat/maisonette £132,000 £129,000 2.3
    All £208,000 £202,000 3

    Funding and buyer status for Wales

    Transaction type Average price December 2024 Annual price change % since December 2023 Monthly price change % since November 2024
    Cash £207,000 2.3 -1
    Mortgage £209,000 3.4 -0.3
    First-time buyer £179,000 3.5 -0.6
    Former owner occupier £248,000 2.4 -0.4

    Building status for Wales

    Building status* Average price October 2024 Annual price change % since October 2023 Monthly price change % since September 2024
    New build £362,000 20.5 -0.4
    Existing resold property £206,000 2.4 0.6

    *Figures for the 2 most recent months are not being published because there are not enough new build transactions to give a meaningful result.

    UK house prices

    UK house prices rose by 4.6% in the year to December 2024, up from the revised estimate of 3.9% in the 12 months to November 2024. On a non-seasonally adjusted basis, average house prices in the UK decreased by 0.1% between November 2024 and December 2024, compared with a decease 0.8% from the same period 12 months ago (November and December 2023).

    The UK Property Transactions Statistics showed that in December 2024, on a seasonally adjusted basis, the estimated number of transactions of residential properties with a value of £40,000 or greater was 96,000. This is 18.7% higher than a year ago (December 2023). Between November 2024 and December 24, UK transactions increased by 2.9% on a seasonally adjusted basis.

    House price monthly increase was highest in the East of England where prices increased by 0.6% in the year to December 2024. The highest annual growth was in the the North East, where prices increased by 6.7% in the year to December 2024.

    See the economic statement.

    The UK HPI is based on completed housing transactions. Typically, a house purchase can take 6 to 8 weeks to reach completion. As with other indicators in the housing market, which typically fluctuate from month to month, it is important not to put too much weight on one month’s set of house price data.

    Access the full UK HPI

    Background

    1. We publish the UK House Price Index (HPI) on the second or third Wednesday of each month with Northern Ireland figures updated quarterly. We will publish the January 2025 UK HPI at 9:30am on Wednesday 26 March 2025. See calendar of release dates.
    2. We have made some changes to improve the accuracy of the UK HPI. We are not publishing average price and percentage change for new builds and existing resold property as done previously because there are not currently enough new build transactions to provide a reliable result. This means that in this month’s UK HPI reports, new builds and existing resold property are reported in line with the sales volumes currently available.
    3. The UK HPI revision period has been extended to 13 months, following a review of the revision policy (see calculating the UK HPI section 4.4). This ensures the data used is more comprehensive.
    4. Sales volume data is available by property status (new build and existing property) and funding status (cash and mortgage) in our downloadable data tables. Transactions that require us to create a new register, such as new builds, are more complex and require more time to process. Read revisions to the UK HPI data.
    5. Revision tables are available for England and Wales within the downloadable data in CSV format. See about the UK HPI for more information.
    6. HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Agency and the Valuation Office Agency supply data for the UK HPI.
    7. The Office for National Statistics (ONS) and Land & Property Services/Northern Ireland Statistics and Research Agency calculate the UK HPI. It applies a hedonic regression model that uses the various sources of data on property price, including HM Land Registry’s Price Paid Dataset, and attributes to produce estimates of the change in house prices each month. Find out more about the methodology used from the ONS and Northern Ireland Statistics & Research Agency.
    8. We take the UK Property Transaction statistics  from the HM Revenue and Customs (HMRC) monthly estimates of the number of residential and non-residential property transactions in the UK and its constituent countries. The number of property transactions in the UK is highly seasonal, with more activity in the summer months and less in the winter. This regular annual pattern can sometimes mask the underlying movements and trends in the data series. HMRC presents the UK aggregate transaction figures on a seasonally adjusted basis. We make adjustments for both the time of year and the construction of the calendar, including corrections for the position of Easter and the number of trading days in a particular month.
    9. UK HPI seasonally adjusted series are calculated at regional and national levels only. See data tables.
    10. The first estimate for new build average price (April 2016 report) was based on a small sample which can cause volatility. A three-month moving average has been applied to the latest estimate to remove some of this volatility.
    11. The UK HPI reflects the final transaction price for sales of residential property. Using the geometric mean, it covers purchases at market value for owner-occupation and buy-to-let, excluding those purchases not at market value (such as re-mortgages), where the ‘price’ represents a valuation.
    12. HM Land Registry provides information on residential property transactions for England and Wales, collected as part of the official registration process for properties that are sold for full market value.
    13. The HM Land Registry dataset contains the sale price of the property, the date when the sale was completed, full address details, the type of property (detached, semi-detached, terraced or flat), if it is a newly built property or an established residential building and a variable to indicate if the property has been purchased as a financed transaction (using a mortgage) or as a non-financed transaction (cash purchase).
    14. Repossession sales data is based on the number of transactions lodged with HM Land Registry by lenders exercising their power of sale.
    15. For England, we show repossession sales volume recorded by government office region. For Wales, we provide repossession sales volume for the number of repossession sales.
    16. Repossession sales data is available from April 2016 in CSV format. Find out more information about repossession sales.
    17. We publish CSV files of the raw and cleansed aggregated data every month for England, Scotland and Wales. We publish Northern Ireland data on a quarterly basis. They are available for free use and re-use under the Open Government Licence.
    18. HM Land Registry is a government department created in 1862. Its vision is: “A world-leading property market as part of a thriving economy and a sustainable future.”
    19. HM Land Registry’s purpose is: “We protect your land ownership and provide services and data that underpin an efficient and informed property market.”
    20. HM Land Registry safeguards land and property ownership valued at £8 trillion, enabling over £1 trillion worth of personal and commercial lending to be secured against property across England and Wales. The Land Register contains more than 26.5 million titles showing evidence of ownership for more than 89% of the land mass of England and Wales.
    21. For further information about HM Land Registry visit www.gov.uk/land-registry.
    22. Follow us on @HMLandRegistry, our blog, LinkedIn and Facebook.

    Contact

    Press Office

    Trafalgar House
    1 Bedford Park
    Croydon
    CR0 2AQ

    Email HMLRPressOffice@landregistry.gov.uk

    Phone (Monday to Friday 8:30am to 5:30pm) 0300 006 3365

    Mobile (5:30pm to 8:30am weekdays, all weekend and public holidays) 07864 689 344

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    Updates to this page

    Published 19 February 2025

    MIL OSI United Kingdom –

    February 19, 2025
  • MIL-OSI: Terranet AB – Year-end report 2024

    Source: GlobeNewswire (MIL-OSI)

    Significant events during the fourth quarter 

    Agreement with an actor in the mining industry
    Terranet entered into a partnership agreement with a vehicle actor in the mining industry. The collaboration is part of the company’s strategy to enable the expansion of the technology into new application areas and strengthen BlincVision’s commercial potential.

    Product development plan for 2025
    Terranet presented an updated product development plan focusing on further developing the BlincVision prototype into an MVP (Minimum Viable Product). With an MVP that customers can test in their own vehicles, the path toward volume production can begin.

    TO8 exercised at 88 percent
    The company raised approximately SEK 17.2 million before issuance costs through the exercise of series TO8B warrants. The strong outcome reflects shareholders’ confidence in the company and its future development.

    Significant events after the end of the period

    New CEO appointed
    Terranet’s board has appointed Lars Lindell as the new CEO. Lars has over 30 years of international experience leading technology companies in the automotive and telecom industries. He will assume the role starting March 10, 2025. Until then, CFO Dan Wahrenberg will serve as interim CEO.

    Financial overview

      Oct – Dec
    2024
    Oct – Dec 2023 Jan – Dec 2024 Jan – Dec 2023
    Revenue (TSEK) 1 205 283 834
    Operating result (TSEK) -9,555 -9,219 -35,808 -35,926
    Financial items (TSEK) -482 -33.608 -3,292 -37,190
    Earnings per share (SEK) -0,01 -0,06 -0,04 -0,15
    Closing cash (TSEK) 18,541 29 006 18,541 29 006

    Comment from the CEO

    ” With new partnerships and progress in product development, we are laying the foundation for 2025.”

    The fourth quarter has brought several important advancements for Terranet. BlincVision was integrated into a partner’s vehicle and tested in a new environment. We initiated a collaboration with a player in the mining industry and secured funding for continued development. At the same time, we are preparing for 2025 with a new CEO and expanded resources within product development.

    BlincVision expands its application area
    In December, we took a step beyond the traditional automotive industry by entering into a collaboration agreement with a player in the mining industry. This partnership highlights BlincVision’s flexibility and its potential to create value across multiple sectors. By broadening the use of our technology, we strengthen our strategy and open up new opportunities for the future.

    Progress in development and innovation
    Over the past year, BlincVision has progressed from concept to prototype, successfully tested both in a lab environment and in moving vehicles. The autonomous braking at AstaZero marked a significant milestone, confirming the potential of our technology in real-world traffic scenarios. During the fourth quarter, BlincVision was integrated into a partner’s vehicle via MobilityXlab. Testing in new environments is evaluating the system’s robustness and adaptability. This collaboration provides valuable insights that help us meet our partner’s requirements and move closer to commercial application.

    Beyond the MobilityXlab partnership, Terranet remains actively involved in research projects aimed at enhancing traffic safety. Through the VERDAS and VERDAS2 projects, we collaborate with several leading players in the automotive industry.

    The communicated product development plan for 2025 sets clear milestones moving forward. The goal is to refine BlincVision into an MVP focusing on core functions. An MVP enables deeper customer dialogues on volume production. To accelerate progress, additional resources are being allocated to development.

    Strong participation in T08
    During the fourth quarter, subscription warrants of series T08 were exercised at a rate of 88 percent, adding SEK 17.2 million to the company before issuance costs. We thank our shareholders for your trust and for recognizing BlincVision’s potential to set a new standard for faster and more reliable driver assistance systems.

    New CEO
    In October, Magnus Andersson announced his resignation as CEO, and he left the company in early 2025. We thank Magnus for his dedication and leadership, which has taken the company from research and development to a prototype and partnership agreements. The board has appointed Lars Lindell as the new CEO. With over 30 years of international experience leading fast-growing tech companies, he will assume the role starting March 10, 2025. We look forward to welcoming Lars and starting the next chapter of Terranet’s development.

    Dan Wahrenberg
    Acting CEO
    Lund February 19, 2025

    This information is such that Terranet AB is required to make public in accordance with the EU’s Market Abuse Regulation (MAR). The information was made public by the Company’s contact person below on 19 February 2025, at 08.30 CET.

    For more information, please contact:
    Dan Wahrenberg, acting CEO
    E-mail: dan.wahrenberg@terranet.se

    About Terranet AB (publ) 
    Terranet’s goal is to save lives in urban traffic. The company develops innovative technical solutions for Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles (AV). Terranet’s anti-collision system BlincVision laser scans and detects road objects up to ten times faster than any other ADAS technology available today.
    The company is headquartered in Lund, with offices in Gothenburg and Stuttgart. Since 2017, Terranet has been listed on Nasdaq First North Premier Growth Market (Nasdaq: TERRNT-B).

    Follow our journey at: https://terranet.se/
    Terranet financial reports:  https://terranet.se/en/reports/

    Certified Adviser to Terranet is Mangold Fondkommission AB, 08-503 015 50, ca@mangold.se.

    Attachments

    • Terranet Q4 Rapport 2024_ENG
    • Terranet Year End Report 2024 ENG

    The MIL Network –

    February 19, 2025
  • MIL-OSI: Wix Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Capping off a year of sustained growth acceleration and stronger than expected FCF generation – surpassing Rule of 40 in 2024 and on track to achieve Rule of 45 in 2025

    • Culminated a year of accelerated growth and innovation with Q4 bookings of $465 million, up 18% y/y, and Q4 revenue of $460 million, up 14% y/y
      • Steady growth acceleration in Self Creators coupled with continued strength in high-growth Partners, demonstrated by Partners revenue growth of 30% y/y in FY2024
      • Strong momentum across key product focus areas, including Studio, AI and commerce as well as solid business fundamentals and price increase benefit
    • Robust growth and a stable operating cost base drove FCF1 generation to nearly double in 2024 compared to previous year, resulting in continued profitability improvement with Q4 FCF margin of 29% and full year FCF1 margin of 28%
      • Achieved first year of positive GAAP operating income in Wix history
    • On track to achieve Rule of 45 in 2025 at high end of outlook through continued innovation-powered growth and further FCF margin expansion
    • Completed $200 million share repurchase plan in January, totaling $725 million in aggregate repurchases since August 2023

    NEW YORK — Wix.com Ltd. (Nasdaq: WIX), the leading SaaS website builder platform2, today reported financial results for the fourth quarter and full year 2024. In addition, the Company provided its initial outlook for the first quarter and full year 2025. Please visit the Wix Investor Relations website at https://investors.wix.com to view the Q4’24 Shareholder Update and other materials.

    “Wix sets a high standard for innovation and creativity, and we’re constantly exceeding expectations. This past year was one of exciting innovation as we introduced revolutionary AI solutions such as the new generation AI Website Builder. We also made meaningful enhancements to the Studio platform, including the AI visual sitemap and wireframe generator and Figma integration among new advanced design capabilities,” said Avishai Abrahami, Wix Co-founder and CEO. “2025 is poised to reimagine and expand the Self Creator experience with the launch of two transformative products planned for the spring and early fall. I strongly believe that these will deliver immense value to users and, in turn, accelerate Self Creator growth to double-digits in the years to come. We’re thrilled about these strategic enhancements, which are set to propel our business forward and establish a powerful foundation for the years ahead.”

    “We wrapped 2024 with accelerated growth and profitability, driven by successful execution of our product roadmap and pricing strategy as well as strong business fundamentals,” added Lior Shemesh, CFO at Wix. “With AI usage ramping from our growing suite of innovations and Studio continuing to win market share, we anticipate these to be even bigger growth engines in 2025 and beyond. Solid growth will be coupled with incremental efficiencies from new internal AI initiatives and a stable operating base, enabling us to continue to expand margins and set new profitability records. The high end of our outlook puts us at Rule of 45 in 2025 as we continue to prioritize balancing profitable growth through best-in-class innovation and steadfast execution.”

    Q4 2024 Financial Results

    • Total revenue in the fourth quarter of 2024 was $460.5 million, up 14% y/y
      • Creative Subscriptions revenue in the fourth quarter of 2024 was $329.7 million, up 11% y/y
      • Creative Subscriptions ARR increased to $1.343 billion as of the end of the quarter, up 13% y/y
    • Business Solutions revenue in the fourth quarter of 2024 was $130.7 million, up 21% y/y
      • Transaction revenue3 was $57.1 million, up 23% y/y
    • Partners revenue4 in the fourth quarter of 2024 was $168.1 million, up 29% y/y
    • Total bookings in the fourth quarter of 2024 were $464.6 million, up 18% y/y
      • Total bookings on a y/y constant currency basis were $466.2 million
      • Creative Subscriptions bookings in the fourth quarter of 2024 were $325.2 million, up 15% y/y
      • Business Solutions bookings in the fourth quarter of 2024 were $139.4 million, up 25% y/y
    • Total gross margin on a GAAP basis in the fourth quarter of 2024 was 69%
      • Creative Subscriptions gross margin on a GAAP basis was 84%
      • Business Solutions gross margin on a GAAP basis was 30%
    • Total non-GAAP gross margin in the fourth quarter of 2024 was 70%
      • Creative Subscriptions gross margin on a non-GAAP basis was 85%
      • Business Solutions gross margin on a non-GAAP basis was 32%
    • GAAP net income in the fourth quarter of 2024 was $48.0 million, or $0.86 per basic share or $0.80 per diluted share
    • Non-GAAP net income in the fourth quarter of 2024 was $117.1 million, or $2.10 per basic share or $1.93 per diluted share
    • Net cash provided by operating activities for the fourth quarter of 2024 was $133.7 million, while capital expenditures totaled $2.0 million, leading to free cash flow of $131.8 million

    FY 2024 Financial Results

    • Total revenue for the full year 2024 was $1.761 billion, up 13% y/y
      • Creative Subscriptions revenue for the full year 2024 was $1.265 billion, up 10% y/y
      • Business Solutions revenue for the full year 2024 was $495.7 million, up 21% y/y
        • Transaction revenue3 was $214.9 million, up 21% y/y
    • Partners revenue4 for the full year 2024 was $610.1 million, up 30% y/y
    • Total bookings for the full year 2024 were $1.830 billion, up 15% y/y
      • Creative Subscriptions bookings for the full year 2024 were $1.315 billion, up 12% y/y
      • Business Solutions bookings for the full year 2024 were $514.6 million, up 22% y/y
    • Total gross margin on a GAAP basis for the full year 2024 was 68%
      • Creative Subscriptions gross margin on a GAAP basis was 83%
      • Business Solutions gross margin on a GAAP basis was 29%
    • Total non-GAAP gross margin for the full year 2024 was 69%
      • Creative Subscriptions gross margin on a non-GAAP basis was 84%
      • Business Solutions gross margin on a non-GAAP basis was 30%
    • GAAP net income for the full year 2024 was $138.3 million, or $2.49 per basic share or $2.36 per diluted share
    • Non-GAAP net income for the full year 2024 was $383.3 million, or $6.90 per basic share or $6.39 per diluted share
    • Net cash provided by operating activities for the full year 2024 was $497.4 million, while capital expenditures totaled $19.3 million, leading to free cash flow of $478.1 million
    • Excluding the capex investment associated with our new headquarters office build out, free cash flow1 for the full year 2024 would have been $488.4 million, or 28% of revenue
    • Executed $466 million in repurchases of ordinary shares in 2024 as we remained committed to share count management and returning value to shareholders
    • Finished full year 2024 with 6.2 million total premium subscriptions as of December 31, 2024
    • Registered users as of December 31, 2024 were over 282 million
    • Total employee count as of December 31, 2024 was 5,283

    ____________________
    1 Free cash flow excluding expenses associated with the buildout of our new corporate headquarters.
    2 Based on number of active live sites as reported by competitors’ figures, independent third-party data and internal data as of Q3 2024.
    3 Transaction revenue is a portion of Business Solutions revenue, and we define transaction revenue as all revenue generated through transaction facilitation, primarily from Wix Payments, as well as Wix POS, shipping solutions and multi-channel commerce and gift card solutions.
    4 Partners revenue is defined as revenue generated through agencies and freelancers that build sites or applications for other users (“Agencies”) as well as revenue generated through B2B partnerships, such as LegalZoom or Vistaprint (“Resellers”). We identify Agencies using multiple criteria, including but not limited to, the number of sites built, participation in the Wix Partner Program and/or the Wix Marketplace or Wix products used (incl. Wix Studio). Partners revenue includes revenue from both the Creative Subscriptions and Business Solutions businesses.

    Financial Outlook

    We expect another year of robust bookings and revenue growth powered by existing key growth initiatives and ongoing product enhancements against a stable and positive demand environment:

    • With Studio continuing to outperform and AI usage and conversion benefits ramping, we anticipate these initiatives to be even bigger growth engines in 2025
       
    • We are continuously testing and rolling out product enhancements as well as new strategic initiatives, which are driving demonstrable added value to users. As a result, we expect incremental ARPS and conversion improvements.

      We expect top-line contribution from those enhancements and initiatives already rolled out and underway to layer in as we progress through the year, resulting in accelerated growth in 2H. This acceleration is anticipated for both revenue and bookings, even as bookings fully laps pricing tailwinds in mid-Q1’25.

    • While confident the new products in our pipeline, particularly the meaningful Self Creator offerings coming this year, will drive medium-term growth, we are incorporating almost no contribution from new products into our 2025 forecast.

    As a global company with ~40% of revenue derived in non-US dollar currencies, we began to experience adverse effects from outsized changes in FX rates beginning mid-Q4 and continuing YTD, particularly the US dollar to Euro and British pound exchange rates. Assuming late January spot rates, we anticipate strong FX headwinds to 2025 outlook.

    As such, we provide outlook for the year and the first quarter on both as-reported and constant currency bases.

      As-reported As-reported
    growth y/y
    FX impact Constant currency
    growth y/y
    Full year 2025        
    Bookings $2,025 – 2,060 million 11 – 13% ~$45 million 13 – 15%
    Revenue $1,970 – 2,000 million 12 – 14% ~$34 million 14 – 16%
    Free cash flow $590 – 610 million 30 – 31% margin ~$25 million 31 – 32% margin
    Q1’25        
    Revenue $469 – 473 million 12 – 13% ~$6 million 13 – 14%

    With a meaningful portion of our operating expenses denominated in non-US currencies, the strengthening US dollar is expected to drive a modest benefit to 2025 expenses. As a result, the net FX impact on free cash flow is expected to be smaller than the anticipated top-line headwinds.

    We believe our strong commitment to sustained top-line momentum and translating growth into additional operating leverage puts us on track to achieve Rule of 45 in 2025 at the high end of our outlook.

    Conference Call and Webcast Information

    Wix will host a conference call to discuss the results at 8:30 a.m. ET on Wednesday, February 19, 2025. A live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the Company’s website at https://investors.wix.com/.

    About Wix.com Ltd.

    Wix is the leading SaaS website builder platform1 to create, manage and grow a digital presence. Founded  in 2006, Wix is a comprehensive platform providing users – self-creators, agencies, enterprises, and more – with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients.

    For more about Wix, please visit our Press Room
    Media Relations Contact:  PR@wix.com 

    Non-GAAP Financial Measures and Key Operating Metrics

    To supplement its consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, Wix uses the following non-GAAP financial measures: bookings, cumulative cohort bookings, bookings on a constant currency basis, revenue on a constant currency basis, non-GAAP gross margin, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per share, free cash flow, free cash flow on a constant currency basis, free cash flow, as adjusted, free cash flow margins, non-GAAP R&D expenses, non-GAAP S&M expenses, non-GAAP G&A expenses, non-GAAP operating expenses, non-GAAP cost of revenue expense, non-GAAP financial expense, non-GAAP tax expense (collectively the “Non-GAAP financial measures”). Measures presented on a constant currency or foreign exchange neutral basis have been adjusted to exclude the effect of y/y changes in foreign currency exchange rate fluctuations. Bookings is a non-GAAP financial measure calculated by adding the change in deferred revenues and the change in unbilled contractual obligations for a particular period to revenues for the same period. Bookings include cash receipts for premium subscriptions purchased by users as well as cash we collect from business solutions, as well as payments due to us under the terms of contractual agreements for which we may have not yet received payment. Cash receipts for premium subscriptions are deferred and recognized as revenues over the terms of the subscriptions. Cash receipts for payments and the majority of the additional products and services (other than Google Workspace) are recognized as revenues upon receipt. Committed payments are recognized as revenue as we fulfill our obligation under the terms of the contractual agreement. Bookings and Creative Subscriptions Bookings are also presented on a further non-GAAP basis by excluding, in each case, bookings associated with long term B2B partnership agreements. Non-GAAP gross margin represents gross profit calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization, divided by revenue. Non-GAAP operating income (loss) represents operating income (loss) calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, acquisition-related expenses and sales tax expense accrual and other G&A expenses (income). Non-GAAP net income (loss) represents net loss calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, amortization, sales tax expense accrual and other G&A expenses (income), amortization of debt discount and debt issuance costs and acquisition-related expenses and non-operating foreign exchange expenses (income). Non-GAAP net income (loss) per share represents non-GAAP net income (loss) divided by the weighted average number of shares used in computing GAAP loss per share. Free cash flow represents net cash provided by (used in) operating activities less capital expenditures. Free cash flow, as adjusted, represents free cash flow further adjusted to exclude one-time cash restructuring charges and the capital expenditures and other expenses associated with the buildout of our new corporate headquarters. Free cash flow margins represent free cash flow divided by revenue. Non-GAAP cost of revenue represents cost of revenue calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP R&D expenses represent R&D expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP S&M expenses represent S&M expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP G&A expenses represent G&A expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP operating expenses represent operating expenses calculated in accordance with GAAP as adjusted for the impact of share-based compensation expense, acquisition-related expenses and amortization. Non-GAAP financial expense represents financial expense calculated in accordance with GAAP as adjusted for unrealized gains of equity investments, amortization of debt discount and debt issuance costs and non-operating foreign exchange expenses. Non-GAAP tax expense represents tax expense calculated in accordance with GAAP as adjusted for provisions for income tax effects related to non-GAAP adjustments.

    The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

    For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures. The Company is unable to provide reconciliations of free cash flow, free cash flow, as adjusted, bookings, cumulative cohort bookings, non-GAAP gross margin, and non-GAAP tax expense to their most directly comparable GAAP financial measures on a forward-looking basis without unreasonable effort because items that impact those GAAP financial measures are out of the Company’s control and/or cannot be reasonably predicted. Such information may have a significant, and potentially unpredictable, impact on our future financial results.

    Wix also uses Creative Subscriptions Annualized Recurring Revenue (ARR) as a key operating metric. Creative Subscriptions ARR is calculated as Creative Subscriptions Monthly Recurring Revenue (MRR) multiplied by 12. Creative Subscriptions MRR is calculated as the total of (i) the total monthly revenue of all Creative Subscriptions in effect on the last day of the period, other than domain registrations; (ii) the average revenue per month from domain registrations multiplied by all registered domains in effect on the last day of the period; and (iii) monthly revenue from other partnership agreements including enterprise partners.

    Forward-Looking Statements

    This document contains forward-looking statements, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. Such forward-looking statements may include projections regarding our future performance, including, but not limited to revenue, bookings and free cash flow, and may be identified by words like “anticipate,” “assume,” “believe,” “aim,” “forecast,” “indication,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “outlook,” “future,” “will,” “seek” and similar terms or phrases. The forward-looking statements contained in this document, including the quarterly and annual guidance, are based on management’s current expectations, which are subject to uncertainty, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Important factors that could cause our actual results to differ materially from those indicated in the forward-looking statements include, among others, our expectation that we will be able to attract and retain registered users and partners, and generate new premium subscriptions, in particular as we continuously adjust our marketing strategy and as the macro-economic environment continues to be turbulent; our expectation that we will be able to increase the average revenue we derive per premium subscription, including through our partners; our expectation that new products and developments, as well as third-party products we will offer in the future within our platform, will receive customer acceptance and satisfaction, including the growth in market adoption of our online commerce solutions and our Wix Studio product; our expectations regarding our ability to develop relevant and required products using artificial intelligence (“AI”), the regulatory environment impacting AI and AI-related activities, including privacy and intellectual property, and potential competitive impacts from AI tools; our assumption that historical user behavior can be extrapolated to predict future user behavior, in particular during turbulent macro-economic environments; our prediction of the future revenues and/or bookings generated by our user cohorts and our ability to maintain and increase such revenue growth, as well as our ability to generate and maintain elevated levels of free cash flow and profitability; our expectation to maintain and enhance our brand and reputation; our expectation that we will effectively execute our initiatives to improve our user support function through our Customer Care team, and continue attracting registered users and partners, and increase user retention, user engagement and sales; our ability to successfully localize our products, including by making our product, support and communication channels available in additional languages and to expand our payment infrastructure to transact in additional local currencies and accept additional payment methods; our expectation regarding the impact of fluctuations in foreign currency exchange rates, interest rates, potential illiquidity of banking systems, and other recessionary trends on our business; our expectations relating to the repurchase of our ordinary shares and/or Convertible Notes pursuant to our repurchase program; our expectation that we will effectively manage our infrastructure; our expectation to comply with AI, privacy, and data protection laws and regulations as well as contractual privacy and data protection obligations; our expectations regarding the outcome of any regulatory investigation or litigation, including class actions; our expectations regarding future changes in our cost of revenues and our operating expenses on an absolute basis and as a percentage of our revenues, as well as our ability to achieve and maintain profitability; our expectations regarding changes in the global, national, regional or local economic, business, competitive, market, and regulatory landscape, including as a result of Israel-Hamas war and/or the Israel-Hezbollah hostilities and/or the Ukraine-Russia war and any escalations thereof and potential for wider regional instability and conflict; our planned level of capital expenditures and our belief that our existing cash and cash from operations will be sufficient to fund our operations for at least the next 12 months and for the foreseeable future; our expectations with respect to the integration and performance of acquisitions; our ability to attract and retain qualified employees and key personnel; and our expectations about entering into new markets and attracting new customer demographics, including our ability to successfully attract new partners large enterprise-level users and to grow our activities, including through the adoption of our Wix Studio product, with these customer types as anticipated and other factors discussed under the heading “Risk Factors” in the Company’s annual report on Form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission on March 22, 2024. The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. Any forward-looking statement made by us in this press release speaks only as of the date hereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.

    Wix.com Ltd.
    CONSOLIDATED STATEMENTS OF OPERATIONS – GAAP
    (In thousands, except loss per share data)
                   
      Three Months Ended   Year Ended
      December 31,   December 31,
      2024   2023   2024   2023
      (unaudited)   (unaudited)
    Revenues              
    Creative Subscriptions $ 329,732   $ 296,154   $ 1,264,975   $ 1,152,007
    Business Solutions 130,723   107,617   495,675   409,658
      460,455   403,771   1,760,650   1,561,665
                   
    Cost of Revenues              
    Creative Subscriptions 52,671   52,794   213,422   215,515
    Business Solutions 90,965   73,319   351,213   297,013
      143,636   126,113   564,635   512,528
                   
    Gross Profit 316,819   277,658   1,196,015   1,049,137
                   
    Operating expenses:              
    Research and development 127,186   125,743   495,281   481,293
    Selling and marketing 106,629   103,642   425,457   399,577
    General and administrative 46,984   43,401   175,136   160,033
    Impairment, restructuring and other costs –   3,103   –   32,614
    Total operating expenses 280,799   275,889   1,095,874   1,073,517
    Operating income (loss) 36,020   1,769   100,141   (24,380)
    Financial income, net 16,355   6,461   51,820   62,474
    Other income (expenses), net (94)   44   (36)   (255)
    Income before taxes on income 52,281   8,274   151,925   37,839
    Income tax expenses 4,257   5,320   13,603   4,702
    Net income $ 48,024   $ 2,954   $ 138,322   $ 33,137
                   
    Basic net income per share $ 0.86   $ 0.05   $ 2.49   $ 0.58
    Basic weighted-average shares used to compute net income per share 55,786,201   57,317,815   55,579,368   56,829,962
                   
    Diluted net income per share $ 0.80   $ 0.05   $ 2.36   $ 0.57
    Diluted weighted-average shares used to compute net income per share 60,648,791   59,085,757   59,953,371   58,403,037
                   
    Wix.com Ltd.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
               
       
       December 31,    December 31,
       2024    2023
    Assets  (unaudited)    (audited)
    Current Assets:          
    Cash and cash equivalents $ 660,939   $ 609,622
    Short-term deposits   106,844     212,709
    Restricted deposits   773     2,125
    Marketable securities   338,593     140,563
    Trade receivables   46,166     57,394
    Prepaid expenses and other current assets   126,887     47,792
    Total current assets   1,280,202     1,070,205
               
    Long-Term Assets:          
    Prepaid expenses and other long-term assets   27,021     34,296
    Property and equipment, net   128,155     136,928
    Marketable securities   6,135     64,806
    Intangible assets, net   22,141     28,010
    Goodwill   49,329     49,329
    Operating lease right-of-use assets   399,861     420,562
    Total long-term assets   632,642     733,931
               
    Total assets $ 1,912,844   $ 1,804,136
               
    Liabilities and Shareholders’ Deficiency          
    Current Liabilities:          
    Trade payables $ 48,003   $ 38,305
    Employees and payroll accruals   142,007     56,581
    Deferred revenues   661,171     592,608
    Current portion of convertible notes, net   572,880     –
    Accrued expenses and other current liabilities   63,246     76,556
    Operating lease liabilities   27,907     24,981
    Total current liabilities   1,515,214     789,031
    Long Term Liabilities:          
    Long-term deferred revenues   89,271     83,384
    Long-term deferred tax liability   1,965     7,167
    Convertible notes, net   –     569,714
    Other long-term liabilities   16,021     7,699
    Long-term operating lease liabilities   369,159     401,626
    Total long-term liabilities   476,416     1,069,590
               
    Total liabilities   1,991,630     1,858,621
               
    Shareholders’  Deficiency          
    Ordinary shares   107     110
    Additional paid-in capital   1,840,574     1,539,952
    Treasury Stock   (1,025,167)     (558,875)
    Accumulated other comprehensive loss   7,242     4,192
    Accumulated deficit   (901,542)     (1,039,864)
    Total shareholders’ deficiency   (78,786)     (54,485)
               
    Total liabilities and shareholders’ deficiency $ 1,912,844   $ 1,804,136
               
    Wix.com Ltd.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
      2024   2023   2024   2023
      (unaudited)   (unaudited)
    OPERATING ACTIVITIES:                      
    Net income $ 48,024   $         2,954   $ 138,322   $        33,137
    Adjustments to reconcile net loss to net cash provided by operating activities:                      
    Depreciation   6,278     6,725     25,246     20,492
    Amortization   1,460     1,488     5,869     5,954
    Share based compensation expenses   61,801     58,195     240,721     224,625
    Amortization of debt discount and debt issuance costs   793     789     3,166     4,194
    Changes in accrued interest and exchange rate on short term and long term deposits   (635)     (586)     852     (2,415)
    Non-cash impairment, restructuring and other costs   –     3,567     –     26,699
    Amortization of premium and discount and accrued interest on marketable securities, net   (7,838)     4,237     (13,381)     8,346
    Remeasurement loss (gain) on Marketable equity   –     (10,296)     (3,367)     (30,608)
    Changes in deferred income taxes, net   (7)     (2,035)     (5,196)     (8,784)
    Changes in operating lease right-of-use assets   4,351     7,174     24,246     27,231
    Changes in operating lease liabilities   (2,821)     16,701     (33,086)     (31,333)
    Loss on foreign exchange, net   2,471     –     3,906     –
    Decrease (increase) in trade receivables   4,058     (2,794)     11,228     (15,308)
    Decrease in prepaid expenses and other current and long-term assets   (63,684)     (10,845)     (76,963)     (20,105)
    Increase (decrease) in trade payables   17,329     15,120     12,893     (52,455)
    Increase (decrease) in employees and payroll accruals   66,407     (8,307)     85,426     (29,532)
    Increase in short term and long term deferred revenues   1,609     2,788     74,450     76,193
    Increase (decrease) in accrued expenses and other current liabilities   (5,860)     5,505     3,083     11,915
    Net cash provided by operating activities   133,736     90,380     497,415     248,246
    INVESTING ACTIVITIES:                      
    Proceeds from short-term deposits and restricted deposits   97,051     131,754     276,697     625,495
    Investment in short-term deposits and restricted deposits   (25,540)     (99,725)     (170,332)     (297,917)
    Investment in marketable securities   –     (2,607)     (267,209)     (6,732)
    Proceeds from marketable securities   15,000     33,690     125,176     250,960
    Purchase of property and equipment and lease prepayment   (1,562)     (9,582)     (17,813)     (63,021)
    Capitalization of internal use of software   (401)     (408)     (1,523)     (3,028)
    Investment in other assets   –     –     –     (111)
    Proceeds from investment in other assets $ –     –   $ 550     –
    Proceeds from sale of equity securities   –     19,203     22,148     68,671
    Purchases of investments in privately held companies   (1,000)     (76)     (3,160)     (7,603)
    Net cash provided by investing activities   83,548     72,249     (35,466)     566,714
    FINANCING ACTIVITIES:                      
    Proceeds from exercise of options and ESPP shares   6,692     898     59,576     39,660
    Purchase of treasury stock   –     (58,698)     (466,302)     (127,017)
    Repayment of convertible notes   –     –     –     (362,667)
    Net cash provided by (used in) financing activities   6,692     (57,800)     (406,726)     (450,024)
    Effect of exchange rates on cash, cash equivalent and restricted cash   (2,471)     –     (3,906)     –
    INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   221,505     104,829     51,317     364,936
    CASH AND CASH EQUIVALENTS—Beginning of period   439,434     504,793     609,622     244,686
    CASH AND CASH EQUIVALENTS—End of period $ 660,939   $ 609,622   $ 660,939   $ 609,622
                           
    Wix.com Ltd.
    KEY PERFORMANCE METRICS
    (In thousands)
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
      2024   2023   2024   2023
      (unaudited)   (unaudited)
    Creative Subscriptions   329,732     296,154     1,264,975     1,152,007
    Business Solutions   130,723     107,617     495,675     409,658
    Total Revenues $ 460,455   $ 403,771   $ 1,760,650   $ 1,561,665
                           
    Creative Subscriptions   325,203     283,501     1,315,445     1,174,776
    Business Solutions   139,389     111,503     514,607     422,727
    Total Bookings $ 464,592   $ 395,004   $ 1,830,052   $ 1,597,503
                           
    Free Cash Flow $ 131,773   $ 80,390   $ 478,079   $ 182,197
    Free Cash Flow excluding HQ build out and restructuring costs $ 131,773   $ 90,125   $ 488,404   $ 246,058
    Creative Subscriptions ARR $ 1,343,070   $ 1,192,814   $ 1,343,070   $ 1,192,814
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF REVENUES TO BOOKINGS
    (In thousands)
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Revenues $       460,455   $        403,771   $    1,760,650   $    1,561,665
    Change in deferred revenues   1,609     2,788     74,450     76,193
    Change in unbilled contractual obligations   2,528     (11,555)     (5,048)     (40,355)
    Bookings $     464,592   $        395,004   $    1,830,052   $     1,597,503
                           
    Y/Y growth   18%           15%      
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Creative Subscriptions Revenues $ 329,732   $ 296,154   $  1,264,975   $ 1,152,007
    Change in deferred revenues   (7,057)     (1,098)     55,518     63,124
    Change in unbilled contractual obligations   2,528     (11,555)     (5,048)     (40,355)
    Creative Subscriptions Bookings $  325,203   $  283,501   $ 1,315,445   $  1,174,776
                           
    Y/Y growth   15%           12%      
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Business Solutions Revenues $ 130,723   $  107,617   $ 495,675   $ 409,658
    Change in deferred revenues   8,666     3,886     18,932     13,069
    Business Solutions Bookings $ 139,389   $ 111,503   $  514,607   $ 422,727
                           
    Y/Y growth   25%           22%      
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF COHORT BOOKINGS
    (In millions)
                  Year Ended
                  December 31,
                   2024    2023
                  (unaudited)
    Q1 Cohort revenues             $ 45   $ 45
    Q1 Change in deferred revenues               16     15
    Q1 Cohort Bookings             $ 61   $ 60
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF REVENUES AND BOOKINGS EXCLUDING FX IMPACT
    (In thousands)
          Three Months Ended
          December 31,
                   2024    2023
          (unaudited)
    Revenues             $       460,455   $  403,771
    FX  impact on Q4/24 using Y/Y rates               (110)     –
    Revenues excluding FX impact             $  460,345   $  403,771
                           
    Y/Y growth               14%      
                           
          Three Months Ended
          December 31,
                   2024    2023
          (unaudited)
    Bookings             $  464,592   $  395,004
    FX  impact on Q4/24 using Y/Y rates               1,600     –
    Bookings excluding FX impact             $  466,192   $  395,004
                           
    Y/Y growth               18%      
                           
                           
    Wix.com Ltd.
    TOTAL ADJUSTMENTS GAAP TO NON-GAAP
    (In thousands)
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
        2024     2023     2024     2023
    (1) Share based compensation expenses: (unaudited)   (unaudited)
    Cost of revenues $  3,466   $ 3,675   $ 14,146   $ 15,013
    Research and development   32,320     31,982     126,462     119,482
    Selling and marketing   9,625     11,232     38,755     41,277
    General and administrative   16,390     11,306     61,358     48,853
    Total share based compensation expenses   61,801     58,195     240,721     224,625
    (2) Amortization   1,834     1,488     6,243     5,954
    (3) Acquisition related expenses   –     9     6     472
    (4) Amortization of debt discount and debt issuance costs   793     789     3,166     4,194
    (5) Impairment, restructuring and other costs   –     3,103     –     32,614
    (6) Sales tax accrual and other G&A expenses   881     137     1,464     748
    (7) Unrealized loss (gain) on equity and other investments   –     (10,296)     (2,536)     (30,608)
    (8) Non-operating foreign exchange income   3,767     15,287     (4,703)     1,499
    (9) Provision for income tax effects related to non-GAAP adjustments   –     2,368     583     (4,337)
    Total adjustments of GAAP to Non GAAP $  69,076   $  71,080   $ 244,944   $  235,161
                           
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF GAAP TO NON-GAAP GROSS PROFIT
    (In thousands)
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Gross Profit $ 316,819   $ 277,658   $ 1,196,015   $ 1,049,137
    Share based compensation expenses   3,466     3,675     14,146     15,013
    Acquisition related expenses   –     5     –     229
    Amortization   667     667     2,669     2,669
    Non GAAP Gross Profit   320,952     282,005     1,212,830     1,067,048
                           
    Non GAAP Gross margin   70%     70%     69%     68%
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Gross Profit – Creative Subscriptions $ 277,061   $ 243,360   $ 1,051,553   $ 936,492
    Share based compensation expenses   2,482     2,695     10,232     11,081
    Non GAAP Gross Profit – Creative Subscriptions   279,543     246,055     1,061,785     947,573
                           
    Non GAAP Gross margin – Creative Subscriptions   85%     83%     84%     82%
                           
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Gross Profit – Business Solutions $  39,758   $ 34,298   $ 144,462   $ 112,645
    Share based compensation expenses   984     980     3,914     3,932
    Acquisition related expenses   –     5     –     229
    Amortization   667     667     2,669     2,669
    Non GAAP Gross Profit – Business Solutions   41,409     35,950     151,045     119,475
                           
    Non GAAP Gross margin – Business Solutions   32%     33%     30%     29%
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF OPERATING INCOME (LOSS) TO NON-GAAP OPERATING INCOME
    (In thousands)
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024     2023
      (unaudited)   (unaudited)
    Operating income (loss) $  36,020   $ 1,769   $ 100,141   $ (24,380)
    Adjustments:                      
    Share based compensation expenses   61,801     58,195     240,721     224,625
    Amortization   1,834     1,488     6,243     5,954
    Impairment, restructuring and other charges   –     3,103     –     32,614
    Sales tax accrual and other G&A expenses   881     137     1,464     748
    Acquisition related expenses   –     9     6     472
    Total adjustments $  64,516   $ 62,932   $ 248,434   $ 264,413
                           
    Non GAAP operating income $  100,536   $ 64,701   $  348,575   $  240,033
                           
    Non GAAP operating margin   22%     16%     20%     15%
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF NET INCOME TO NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE
    (In thousands, except  per share data)
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Net income $ 48,024   $ 2,954   $ 138,322   $ 33,137
    Share based compensation expenses and other Non GAAP adjustments   69,076     71,080     244,944     235,161
    Non-GAAP net income$ $ 117,100   $  74,034   $ 383,266   $ 268,298
                           
    Basic Non GAAP net income per share $ 2.10   $ 1.29   $ 6.90   $ 4.72
    Weighted average shares used in computing basic Non GAAP net income per share   55,786,201     57,317,815     55,579,368     56,829,962
                           
    Diluted Non GAAP net income per share $ 1.93   $ 1.22   $ 6.39   $ 4.39
    Weighted average shares used in computing diluted Non GAAP net income per share   60,648,791     60,512,505     59,953,371     61,106,462
                           
                           
    Wix.com Ltd.
    RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
    (In thousands)
                           
      Three Months Ended   Year Ended
      December 31,   December 31,
       2024    2023    2024    2023
      (unaudited)   (unaudited)
    Net cash provided by operating activities $  133,736   $  90,380   $ 497,415   $ 248,246
    Capital expenditures, net   (1,963)     (9,990)     (19,336)     (66,049)
    Free Cash Flow $  131,773   $  80,390   $ 478,079   $  182,197
                           
    Restructuring and other costs   –     1,411     –     5,915
    Capex related to HQ build out   –     8,324     10,325     57,946
    Free Cash Flow excluding HQ build out and restructuring costs $  131,773   $  90,125   $  488,404   $ 246,058
                           

    Attachments

    The MIL Network –

    February 19, 2025
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