Category: Transport

  • MIL-OSI USA: PREPARED REMARKS: Sanders Confronts Congress’ Silence on Gaza

    US Senate News:

    Source: United States Senator for Vermont – Bernie Sanders
    WASHINGTON, May 8 – Sen. Bernie Sanders (I-Vt.) today gave remarks on the Senate floor marking 68 days since Israel allowed humanitarian aid into Gaza and calling on the U.S. to end its complicity in the destruction of the Palestinian people.
    Sanders’ remarks, as prepared for delivery, are below and can be watched HERE:  
    M. President, I want to say a few words about an issue that people all over the world are thinking about – are appalled by – but for some strange reason gets very little discussion here in the nation’s capital or in the halls of Congress. And that is the horrific humanitarian disaster that is unfolding in Gaza. 
    Today marks 68 days and counting since ANY humanitarian aid was allowed into Gaza. For more than nine weeks, Israel has blocked all supplies: no food, no water, no medicine, and no fuel. 
    Hundreds of truckloads of lifesaving supplies are waiting to enter Gaza, sitting just across the border, but are denied entry by Israeli authorities. 
    There is no ambiguity here: Netanyahu’s extremist government talks openly about using humanitarian aid as a weapon. Defense Minister Israel Katz said “Israel’s policy is clear: no humanitarian aid will enter Gaza, and blocking this aid is one of the main pressure levers.” 
    M. President, starving children to death as a weapon of war is a clear violation of the Geneva Convention, the Foreign Assistance Act, and basic human decency. Civilized people do not starve children to death. 
    What is going on in Gaza is a war crime, committed openly and in broad daylight, and continuing every single day. 
    M. President, there are 2.2 million people who live in Gaza. Today, these people are trapped. The borders are sealed. And Israel has pushed the population into an ever-smaller area. 
    With Israel having cut off all aid, what we are seeing now is a slow, brutal process of mass starvation and death by the denial of basic necessities. This is methodical, it is intentional, it is the stated policy of the Netanyahu government. 
    Without fuel, there is no ability to pump fresh water, leaving people increasingly desperate, unable to find clean water to drink, wash with, or cook properly. Disease is once again spreading in Gaza. 
    Most of the bakeries in Gaza have now shut down, having run out of fuel and flour. The few remaining community kitchens are also shutting down. Most people are now surviving on scarce canned goods, often a single can of beans or some lentils, shared between a family once a day. 
    The UN reports that more than 2 million people out of a population of 2.2 million face severe food shortages. 
    The starvation hits children hardest. At least 65,000 children now show symptoms of malnutrition, and dozens have already starved to death. 
    Malnutrition rates increased 80 percent in March, the last month for which data is available, after Netanyahu began the siege, but the situation has severely deteriorated since then. 
    UNICEF reported yesterday that “the situation is getting worse every day,” and that they are treating about 10,000 children for severe malnutrition. 
    Without adequate nutrition or access to clean water, many children will die of easily preventable diseases, killed by something as simple as diarrhea. 
    For the tens of thousands of injured people in Gaza, particularly the countless burn victims from Israeli bombing, their wounds cannot heal without adequate food and clean water. Left to fester, infections will kill many who should have survived. 
    With no infant formula, and with malnourished mothers unable to breastfeed, many infants are also at severe risk of death. Those that survive will bear the scars of their suffering for the rest of their lives. 
    And with little medicine available, easily treatable illnesses and chronic diseases like diabetes or heart disease can be a death sentence in Gaza. 
    M. President, what is going on there is not some terrible earthquake, it is not a hurricane, it is not a storm. What is going on in Gaza today is a manmade nightmare. And nothing can justify this. 
    What is happening in Gaza will be a permanent stain on the world’s collective conscience. History will never forget that we allowed this to happen and, for us here in the United States, that we, in fact, enabled this atrocity. 
    There is no doubt that Hamas, a terrorist organization, began this terrible war with its barbaric October 7, 2023, attack on Israel, which killed 1,200 innocent people and took 250 hostages. 
    The International Criminal Court was right to indict Yahya Sinwar and other leaders of Hamas as war criminals for those atrocities. 
    Clearly, Israel had the right to defend itself against Hamas. 
    But Netanyahu’s extremist government has not just waged war against Hamas. Instead, they have waged an all-out barbaric war of annihilation against the Palestinian people. 
    They have intentionally made life unlivable in Gaza.
    Israel, up to now, has killed more than 52,000 people and injured more than 118,000 – 60 percent of whom are women, children, and the elderly. More than 15,000 children have been killed. 
    M. President, Israel’s indiscriminate bombardment has damaged or destroyed two-thirds of all structures in Gaza, including 92 percent of the housing units. Most of the population now is living in tents or other makeshift structures. 
    M. President, the health care system in Gaza has been essentially destroyed. Most of the territory’s hospitals and primary health care facilities have been bombed. 
    Gaza’s civilian infrastructure has been totally devastated, including almost 90 percent of water and sanitation facilities. Most of the roads have been destroyed. 
    Gaza’s education system has been obliterated. Hundreds of schools have been bombed, as has every single one of Gaza’s 12 universities. 
    And there has been no electricity in Gaza for 18 months. 
    M. President, given this reality, nobody should have any doubts that Netanyahu is a war criminal. Just like his counterparts in Hamas, he has a massive amount of innocent blood on his hands.
    And now Netanyahu and his extremist ministers have a new plan: to indefinitely reoccupy all of Gaza, flatten the few buildings that are still standing, and force the entire population of 2.2 million people into a single tiny area, where hired U.S. security contractors will distribute rations to the survivors. 
    Israeli officials are quite open about the goal here: to force Palestinians to leave for other countries “in line with President Trump’s vision for Gaza,” as one Israeli official said this week. 
    Israeli Finance Minister Smotrich said this week that “Gaza will be entirely destroyed,” and that its population will “leave in great numbers.” 
    For many in Netanyahu’s extremist government, this has been the plan all along: it’s called ethnic cleansing. 
    This would be a terrible tragedy, no matter where or why it was happening. But what makes this tragedy so much worse for us in America is that it is our government, the United States government, that is absolutely complicit in creating and sustaining this humanitarian disaster. 
    Last year alone, the United States provided $18 billion in military aid to Israel. This year, the Trump administration has approved $12 billion more in bombs and weapons. 
    And for months, Trump has offered blanket support for Netanyahu. More than that, he has repeatedly said that the United States will actually take over Gaza after the war, that the Palestinians will be pushed out, and that the U.S. will redevelop it into what Trump calls “the Riviera of the Middle East,” a playground for billionaires. 
    M. President, this war has killed or injured more than 170,000 people in Gaza. It has cost American taxpayers well over $20 billion in the last year. And right now, as we speak, thousands of children are starving to death. And the U.S. president is actively encouraging the ethnic cleansing of over 2 million people. 
    Given that reality, one might think that there would be a vigorous discussion right here in the Senate: do we really want to spend billions of taxpayer dollars starving children in Gaza. You tell me why spending billions of dollars to support Netanyahu’s war and starving children in Gaza is a good idea. I’d love to hear it. 
    But, M. President, we are not having that debate. And let me suggest to you why I think we are not having that debate.  
    That is because we have a corrupt campaign finance system that allows AIPAC to set the agenda here in Washington. 
    In the last election cycle, AIPAC’s PAC and Super PAC spent nearly $127 million combined.
    And the fact is that, if you are a member of Congress and you vote against Netanyahu’s war in Gaza, AIPAC is there to punish you with millions of dollars in advertisements to see that you’re defeated. 
    One might think that in a democracy there would be a vigorous debate on an issue of such consequence. But because of our corrupt campaign finance system, people are literally afraid to stand up. If they do, suddenly you will have all kinds of ads coming in to your district to defeat you.
    Sadly, I must confess, that this political corruption works. Many of my colleagues will privately express their horror at Netanyahu’s war crimes, but will do or say very little publicly about it. 
    M. President, history will not forgive our complicity in this nightmare. The time is long overdue for us to end our support for Netanyahu’s destruction of the Palestinian people. We must not put another nickel into Netanyahu’s war machine. We must demand an immediate ceasefire, a surge in humanitarian aid, the release of the hostages, and the rebuilding of Gaza – not for billionaires to enjoy their Riviera there – but rebuilding Gaza for the Palestinian people.

    MIL OSI USA News

  • MIL-OSI USA: Disaster Alert: Reed Warns Trump’s Efforts to Dismantle NOAA Threatens Economy, People, & Environment

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – As hurricane season approaches, U.S. Senator Jack Reed (D-RI) is leading Senate colleagues in sounding the alarm about President Trump’s attacks on the National Oceanographic and Atmospheric Administration (NOAA) and the National Weather Service (NWS) and urging bipartisan action to protect the critical agency from privatization.  

    Every day, NOAA employees collect, analyze, and freely disseminate vast amounts of data through its National Weather Service – vital information all Americans count on.  American commerce – particularly the transportation sector – relies heavily on federal weather forecasts, flooding predictions, hurricane and storm alerts, air temperature readings, nautical charts, and other scientific data.  The research, services, and forecasts provided by these federal agencies is essential for everything from accurately predicting the next severe weather front to supporting farmers and fishermen to scientifically assessing the long-term costs of extreme weather events linked to climate change.

    In a letter to Commerce Secretary Howard Lutnick, Senator Reed led U.S. Senators Richard Blumenthal (D-CT), Chris Coons (D-DE), Sheldon Whitehouse (D-RI), and Ed Markey (D-MA) in pointing to a new public letter released this week by five former Weather Service directors. The Senators say it offers an early warning on how the Trump Administration’s cuts to staff and programs could lead to “needless loss of life.”

    On May 2, five former NWS Directors – who served under both Republican and Democratic administrations – wrote a letter expressing alarm that the NWS is operating at a dangerous staffing deficit, with more than 10% of its workforce lost in recent months due to the Trump Administration’s reckless buyouts and mass firings,” the Senators wrote.  “These massive staffing cuts, combined with the Trump Administration’s proposal to slash funding for the NWS’s parent agency – the National Oceanic and Atmospheric Administration – by 25%, led these Directors to conclude that their “worst nightmare is that weather forecast offices will be so understaffed that there will be needless loss of life.”

    In his preliminary budget request, President Trump called for a $1.5 billion cut to NOAA programs, including a $209 million cut for NOAA’s weather satellites which help to ensure accurate weather forecasting is available to Americans. 

    In their letter, the five Senators called on Secretary Lutnick to “reverse course on the Trump Administration’s staffing and funding cuts, which will prevent the National Weather Service (NWS) from being fully prepared and operational.

    According to NWS, its employees collect over six billion weather observations every day, monitor local conditions through a host of field offices across the nation, issue daily forecasts, and circulate warnings before dangerous weather events. NWS provides the public with forecasts and alerts free of charge. Private companies like AccuWeather, Google, and Apple also rely on NOAA’s observational data and satellites, buoys, and weather sensors to power their own weather products.

    The Senators say that President Trump’s proposed cuts, paired with the administration’s efforts to significantly downsize NOAA and NWS, is already upending the agency’s ability to promptly alert and prepare Americans for imminent and dangerous severe weather events.

    Forecasters at Colorado State University have predicted an “above-average” 2025 hurricane season, with an estimated nine hurricanes, four of which are expected to reach Category 3 status or stronger,” the Senators continued.  Understaffed forecast offices mean longer wait times for critical alerts, slower radar maintenance, and a reduction in the high level of accuracy the public has come to rely upon. Any degradation in service risks loss of life, economic disruption, and long-term damage to public trust in our nation’s ability to prepare for and respond to extreme weather.

    Earlier this year, the so-called Department of Government Efficiency (DOGE) either fired or pushed out more than 10 percent of NOAA’s workforce, including top meteorologists and researchers who are charged with providing the public with accurate, life-saving weather reports and data. The Administration is reportedly working on further diminishing NOAA’s workforce by another 10 percent.

    According to data obtained by the Associated Press, nearly half of all NWS forecast offices are now critically understaffed. Due to these shortages, NWS meteorologists are reportedly being forced to forego important surveys of storm damage that help inform and improve future forecasts and warnings.

    While researchers, scientists, and experts point to a connection between climate change and worsening extreme storms, the Trump Administration is reportedly planning to propose eliminating NOAA’s research office and cutting NOAA research funding by 74 percent. It is anticipated that cuts to NOAA climate programs and activities will also have impacts on the collection of key weather data.  

    In March, Senator Reed called attention to the Trump Administration’s staffing cuts at NOAA and NWS and warned about negative impacts for Rhode Islanders. And last fall, Senator Reed sounded the alarm about Project 2025’s extremist plan to dismantle NOAA, which it labelled “one of the main drivers of the climate change alarm industry.”  Reed warned plans to gut the National Weather Service and emergency management would be a major disaster.

    Full text of the letter follows:

    May 8, 2025

    The Honorable Howard Lutnick, Secretary

    U.S. Department of Commerce

    1401 Constitution Ave NW

    Washington, D.C. 20230

    Dear Secretary Lutnick:

    As we approach the 2025 Atlantic hurricane season, which begins on June 1, we write to demand you reverse course on the Trump Administration’s staffing and funding cuts, which will prevent the National Weather Service (NWS) from being fully prepared and operational.

    The NWS and its employees play a critical role in protecting lives, property, and our national economy. From issuing tornado and hurricane warnings to providing essential weather information for aviation, shipping, agriculture, and emergency response, the NWS is integral to Americans’ daily lives. Its employees include highly trained meteorologists, technicians, and support staff who work hard to deliver life-saving data all across the United States.

    On May 2, five former NWS Directors – who served under both Republican and Democratic administrations – wrote a letter expressing alarm that the NWS is operating at a dangerous staffing deficit, with more than 10% of its workforce lost in recent months due to the Trump Administration’s reckless buyouts and mass firings. These massive staffing cuts, combined with the Trump Administration’s proposal to slash funding for the NWS’s parent agency – the National Oceanic and Atmospheric Administration – by 25%, led these Directors to conclude that their “worst nightmare is that weather forecast offices will be so understaffed that there will be needless loss of life.”

    Forecasters at Colorado State University have predicted an “above-average” 2025 hurricane season, with an estimated nine hurricanes, four of which are expected to reach Category 3 status or stronger. Understaffed forecast offices mean longer wait times for critical alerts, slower radar maintenance, and a reduction in the high level of accuracy the public has come to rely upon. Any degradation in service risks loss of life, economic disruption, and long-term damage to public trust in our nation’s ability to prepare for and respond to extreme weather.

    We urge you to provide a detailed plan on how you will ensure that this critical agency has the staffing and resources it needs to ensure Americans are safe heading into this hurricane season. We look forward to your prompt response to this important matter.

    Sincerely,

    MIL OSI USA News

  • MIL-OSI USA: Reed Rebukes Trump’s Misuse of Military in Immigration Enforcement

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WASHINGTON, DC – Over the past three months, the Trump Administration has surged military personnel to the Southwest Border, Guantanamo Bay, and the U.S. southern coasts. The Administration has spent nearly $500 billion and engaged tens of thousands of troops, Navy warships, armored combat vehicles, and military aircraft in its immigration enforcement operation.

    On Thursday, U.S. Senator Jack Reed (D-RI), Ranking Member of the Senate Armed Services Committee, spoke on the Senate floor to address the unprecedented and likely illegal use of the U.S. military in domestic law enforcement. 

    A video of Senator Reed’s remarks may be viewed here.

    A copy of Senator Reed’s letter to the Department of Defense Office of Inspector General may be viewed here.

    A transcript of Senator Reed’s floor speech follows:

    REED:  Mr. President, I rise to address President Trump’s dangerous and inappropriate use of the U.S. military to carry out his immigration enforcement campaign. 

    Before I discuss the Trump Administration spending nearly half a billion dollars and sending tens of thousands of troops, ships, combat vehicles, and aircraft away from their real missions, I want to make clear that border security is a priority.  I do not support open borders.  And I believe that those who enter the United States and break our laws should be subject to deportation in accordance with the law and due process.  I have voted time and time again for billions of dollars of increased support for border agents, detection technology, and physical barriers where it makes sense. 

    Mr. President, it is no secret that our borders have been under pressure for more than a decade because of a broken immigration system that Congressional Republicans have consistently refused to help fix.  We have considered bipartisan immigration reform bills in 2006, in 2007, in 2013, and in 2024, all of which were shut down by Republicans.  The mess that we have today rests largely on their decision to put political advantage above real progress.

    Now, President Trump is ignoring Congress, ignoring the law, ignoring the Courts, and ignoring the Constitution in order to implement an immigration policy that fails to respect due process, adversely impacts our innovation economy, and to the point of my remarks, degrades our military.  In the name of his anti-immigrant efforts, President Trump is using the U.S. military to conduct operations on American soil that it has neither the training or authority to carry out.  Our troops, who are already stretched thin for time and resources, are now burning time, assets, morale, and readiness for these overblown operations.

    The President has declared an emergency at the border to justify using the military for civilian law enforcement.  This, despite border encounters currently at the lowest level since August of 2020.  Over the past 12 months, since President Biden’s executive actions last June, there has been a continued, significant decrease in unlawful border crossings – including a?more than 60 percent decrease in encounters?from May 2024 to December 2024. 

    In short, all along the Southern Border we have seen a dramatic drop in illegal crossings and migrant encounters, well before President Trump took office.  A national emergency?  It seems not. 

    We already have an entire federal agency to protect our borders and address illegal immigration: the Department of Homeland Security.  DHS includes Customs and Border Protection, Immigration and Customs Enforcement, and other law enforcement groups.  I have voted consistently to give these agencies additional resources to carry out their missions.  But immigration enforcement is not, and must not become, a function of the Department of Defense. 

    Our military has long provided technical and logistical support to DHS at the border, but always and exclusively in a supporting role, drawing a clear line between military law enforcement authorities.  Indeed, since the Reconstruction Era, U.S. presidents have been prohibited from using the military in civilian law enforcement by a law known as the Posse Comitatus Act.  This law has kept the commander-in-chief from wielding the military as a domestic political weapon, and it continues to provide an important check on the President’s ability to use the military domestically against American citizens.

    I understand American citizens asking if it matters which Department enforces immigration, as long as the job gets done.  Well, there are plenty of reasons to be concerned by the President’s current approach, even if one agrees with him politically.

    Most alarmingly, President Trump is taking real steps to militarize immigration enforcement.  Once he uses the military for this reason, it will be easier for him to use it for other purposes.  And given the tenor of his public statements, it is a reasonable fear that he may someday order the use of the armed forces in American cities and against American citizens.

    Indeed, the Brennan Center – a law and public policy institution – recently analyzed President Trump’s military actions at the border and concluded, quote: “Using the military for border enforcement is a slippery slope.  If soldiers are allowed to take on domestic policing roles at the border, it may become easier to justify uses of the military in the U.S. interior in the future.  Our nation’s founders warned against the dangers of an army turned inward, which can all too easily be turned into an instrument of tyranny.”

    Beyond these concerns, there are real, immediate consequences for our troops, which we are seeing right now.

    Readiness

    One of the military’s top priorities is readiness.  America faces real, growing threats from China, Russia, Iran, and other adversaries, and the Department of Defense needs to be laser focused on preparing troops to defend our interests abroad.

    It is difficult to explain the border missions as anything but a distraction from readiness.  We should acknowledge the jobs that our troops are actually doing there.  In the past, up to 2,000 National Guard and Reserve troops would rotate to the border each year to assist DHS and Customs and Border Patrol with basic monitoring, logistics, and warehousing activities.  These missions were designed to be “behind the scenes” logistical support to free up Border Patrol agents from administrative duties and return them back to the field to conduct their core mission of immigration enforcement.

    Today, however, Trump has surged more than 12,000 active-duty troops to the border to carry out a variety of expanded missions that do not look anything like “behind the scenes” administrative support.  For example, one Marine battalion has been stringing miles and miles of barbed wire across the California mountains.  Multiple Army infantry companies are patrolling the Rio Grande riverbank on foot, rifles loaded.  Navy aircrews are flying P-8 Poseidons – the most advanced submarine hunting planes in the world – over the desert.  Two Navy destroyers are loitering off our East and West Coasts, looking for migrant boats in the water.  And at least one Army transportation unit is changing the oil and tires on Border Patrol trucks all day, every day. 

    In addition, the Administration has wasted massive amounts of defense dollars by flying migrants out of the country using military aircraft.  Often, they have had to return them to the United States mainland just days later.  According to U.S. Transportation Command, it costs at least $20,000 per flight hour to use a C-130 and $28,500 per flight hour to use a C-17.  In comparison, contracted ICE flights that regularly transport migrants inside of the U.S. cost only $8,500 per flight hour.  President Trump’s decision to use military aircraft instead of ICE aircraft to shuttle migrants across the globe—to as far away as India—is a gross misuse of taxpayer dollars and servicemembers’ time.

    Just yesterday, we learned that the White House wanted to fly migrants, on military aircraft, to Libya, which is one of the most dangerous, hostile locations on earth.  Human rights groups have called the conditions in Libya’s network of migrant detention centers “horrific” and “deplorable.”  The plan has been cancelled for now, but it is unconscionable for the Trump Administration to consider sending migrants to Libya and endangering our troops in the process.

    Further, the Department of Defense has informed Congress that the current surge in border missions—including troop deployments and military flights—could cost as much as $2 billion by the end of the fiscal year.  Secretary Hegseth has claimed that the border mission is so overwhelming that we will have to withdraw massive numbers of troops from Europe in order to meet the demand.  Incredibly, he has also claimed that the border missions will have “no impact” on our military readiness.

    However, we know that these border missions are harming military readiness.  Last month, when the NORTHCOM commander testified before the Armed Services Committee, I asked how his forces on the border mission are maintaining their required military training.  He testified that his troops are spending 5 days a week supporting Customs and Border Patrol and other agencies, and only 1 day a week training.  In other words, 20 percent – at most – of our servicemembers’ time is being spent training on their critical military tasks.

    In my personal engagements with commanders at all levels, they have made clear that readying their formations requires extensive time and training, as well as stability for families.  Border missions will not build these warfighting requirements.  Border missions will distract from training, drain resources, and undermine readiness.  The Government Accountability Office, or GAO, has assessed previous military support missions to DHS and found them to be detrimental to unit readiness.  Specifically, in its 2021 report, GAO found that, quote, “separating units in order to assign a portion of them to the Southwest Border mission was a consistent trend in degrading readiness ratings.”

    Guantanamo Bay

    In February, President Trump issued an unprecedented order to the Defense Department to begin transporting and detaining migrants at Guantanamo Bay, Cuba.  For decades, the U.S. Naval Station at Guantanamo Bay has housed a facility called the Migrant Operations Center that is used to temporarily house migrants who are saved at sea while traveling in unsafe vessels from Cuba, Haiti, or other nearby nations.  The facility is typically unoccupied and is kept in a low-level operational state until needed and, until February, it was run by private contractors.  The intended use for this center was never to house migrants flown from the United States to Guantanamo Bay. 

    Nonetheless, President Trump ordered the military to expand the Migrant Operations Center to accommodate up to 30,000 migrants who would be brought there from the United States.  Within weeks, approximately 1,000 active-duty troops were sent to Guantanamo to build tents for this massive number of migrants.  However, once built, the tents were found not to meet ICE standards and, to date, they have never been used and are now being dismantled.  The hundreds of troops sent down for the mission have had very little to do in the meantime. 

    Since February, around 500 individuals identified by the Administration as illegal migrants have been flown to Guantanamo Bay, and most have been detained for no more than two weeks.  Rather than being taken to the Migrant Operations Center, about half of these migrants have been held on the other side of the island at the detention facility that was built and used for law of war detainees – such as 9/11 terrorist Khalid Sheikh Mohammed.

    There are currently 15 law of war detainees remaining on Guantanamo Bay.  The facilities housing these detainees have deteriorated significantly in the 20 years since they were built, and the military personnel who guard these individuals also endure the same tough conditions in these dilapidated facilities.   Needless to say, these servicemembers have been stretched thin.  Last fall, it was a significant morale boost for them when the remaining law of war detainees were moved to a “newer” facility.  Naturally, it was a blow to morale when, just one month later, they were ordered back to the older, more decrepit facility to make way for migrants at the newer facility.

    While it is crystal clear that the military is in charge of the law of war detention center at Guantanamo Bay, it is not clear who is legally responsible for the migrants being held there.  Longstanding law dictates that U.S. Immigration and Customs Enforcement maintain “custody and control” of migrants, but in the detention center, the military maintains control.  This leads to questions about who is in charge and accountable.  When I have asked those questions, the answers have often been contradictory.  That’s disturbing.  

    To investigate these issues, I traveled to Guantanamo Bay in March with several colleagues, including Senators Shaheen, Peters, King, and Padilla. We conducted a firsthand examination of the missions underway there and met with military servicemembers, ICE officers, and DHS officials to fully understand the costs and military readiness impacts of these missions.  This trip raised many new questions and concerns. 

    I have grave doubts about the legality of removing migrants from the U.S. to Cuba, a foreign nation, and detaining them there.  There are at least a dozen open cases and court orders impacting the Guantanamo mission.  The detention center has only been used for law of war detainees, and it is reckless to equate migrants with international war criminals. 

    I was outraged by the scale of wastefulness that we found there.  It is obvious that Guantanamo Bay is an illogical location to detain migrants.  The staggering financial cost to fly these migrants out of the United States and detain them at Guantanamo Bay—a mission costing tens of millions of dollars a month—is an insult to American taxpayers.  President Trump could implement his immigration policies for a fraction of the cost by using existing ICE facilities in the U.S., but he is obsessed with the image of using Guantanamo, no matter the cost.

    I am also frustrated that my Senate colleagues and I had to fly to Cuba to get answers to the questions that Defense Secretary Hegseth and Homeland Security Secretary Noem have been ducking for months.  By avoiding questions, they are putting servicemembers and officers on the ground in the position of trying to make sense of contradictory and political orders without any guidance or support from the Pentagon or DHS headquarters.

    Domestic Law Enforcement

    Since coming into office, the Trump Administration has expanded the role of the military in immigration enforcement in other troubling ways.  The movement of migrants from the U.S. to Guantanamo Bay is unprecedented, and the buildup of 12,000 active duty troops at the Southern Border, including the Army’s 10th Mountain Division and 100 armored Stryker combat vehicles, has a huge impact on our military posture.  This is a larger force than we deployed to Afghanistan in 2002 and 2003.

    This Administration has purposely placed many of our military forces into the immigration debate in this country, and I fear it will also place them in legal and ethical risk.

    For example, on March 30th, a military flight traveled from Guantanamo Bay to El Salvador with foreign nationals on board, including seven Venezuelans.  To my understanding, not a single DHS official or civilian was on the flight, meaning that military personnel maintained both custody and control of the migrants, contrary to longstanding DOD policy and practice. 

    Here is an image of that plane unloading in El Salvador.  As you can see, the crew does not include any DHS officials or civilian law enforcement personnel – only uniformed troops, who are physically handing migrants to the Salvadoran police.

    This flight would clearly have been in violation of various immigration laws and policies, recent judicial orders, and the Posse Comitatus Act, as the military carried out a core law enforcement function of deportation without any DHS officials present.  After the fact, the Administration tried to explain itself by saying it used, quote, “counter-terrorism” authorities rather than law enforcement authorities.  I am not aware of any counter-terrorism authorities that would authorize such a flight. 

    Accordingly, last month I sent a letter to the Department of Defense Office of Inspector General asking that office to conduct an inquiry into the incident and any laws or Defense Department policies that may have been violated.  I expect the IG to exercise his independence in carrying out this inquiry, and I am disturbed that the Administration continues to put servicemembers in legal and physical jeopardy through these reckless orders.  Mr. President, I would submit that letter for the record.

    I am also concerned about the Trump Administration’s dubious creation of “National Defense Areas” along the Southern Border in recent weeks.  These National Defense Areas, first designated in New Mexico and later expanded into Texas, were created when the Department of Interior transferred land, including the Roosevelt Reservation—a 60-foot-wide strip along the border—to the Department of Defense.  So now, large swaths of the border are considered military installations.  The Administration has created these zones so that when a migrant crosses the border in those areas, prosecutors can charge them with both entering the U.S. illegally and trespassing on a military installation.  In effect, the National Defense Zones evade the long-standing protections of the Posse Comitatus Act by allowing military forces to act as de facto border police, detaining migrants until they can be transferred to Customs and Border Protection.  In the Administration’s telling, this approach permits military involvement in immigration control without invoking the Insurrection Act of 1807.

    This is both unprecedented and a legal fiction.  As the Brennan Center report found, quote: “No matter how the Trump administration frames these activities… they are civilian law enforcement functions.  He cannot turn them into military operations by misusing the language of war.  These civilian law enforcement activities are not “incidental” — they are the reason for creating the installation.”

    The Administration is also considering using military bases to detain thousands of migrants inside the United States.  Unlike in past emergencies, when military bases near the border were used to hold migrants during large surges, this administration is seeking to use installations deep within the country, including in New Jersey, Indiana, Delaware, California, and Virginia.  One could be forgiven for extrapolating that these bases are being selected to hold round-ups of migrants in major cities. 

    The President is not taking these military actions out of necessity; he is testing the boundaries of our legal system, and, in my view, violating them.  If left unchecked and unchallenged, he will go much, much further in employing the armed forces in to enforce domestic immigration laws, traditionally a civilian law enforcement function.

    For years, Mr. Trump has publicly expressed his desire to use U.S. military personnel for domestic law enforcement.  During the last campaign, he repeatedly claimed that, if elected, he would order the National Guard and active-duty military to carry out mass deportations of undocumented migrants.  He even said that he would deploy the military to conduct local law enforcement in cities, and that troops could shoot shoplifters leaving the scene of a crime.

    Trump’s defenders often say that he is joking or exaggerating when he makes such claims.  But we know these are not idle threats.  In his first 100 days in office, he has declared multiple national emergencies and invoked the Alien Enemies Act of 1798 to deport migrants without due process.  Indeed, he has even unapologetically deported U.S. citizens in violation of the Constitution.  We have all seen the chilling videos of masked and hooded ICE agents arresting civilians on the street – scenes we are accustomed to seeing on the nightly news in countries run by dictators.  The Administration is expanding its operation one step at a time, and President Trump’s deployment of forces to the border, the military deportation flights, and the establishment of National Defense Areas can be interpreted as setting the stage to invoke the Insurrection Act and order the military to carry out domestic law enforcement inside the country. 

    In fact, we have seen this situation before.  In June 2020, then-President Trump, infuriated by protesters in front of the White House and across the country, ordered his staff to prepare to invoke the Insurrection Act to allow him to deploy active-duty military forces to patrol the streets of DC and other cities.  Then-Defense Secretary Mark Esper and Chairman of the Joint Chiefs of Staff Mark Milley talked him out of it, but the President clearly views this as a serious option.

    Beyond the immorality of Trump’s desire to deploy the military domestically, to do so would simply be illegal.  As I mentioned, the doctrine of Posse Comitatus is sacred in our nation to separate the military from direct law enforcement responsibilities. 

    The use of National Guard or active-duty troops should be reserved only to those rare circumstances where civilian law enforcement has collapsed, and state leaders have specifically asked for presidential assistance.  Their deployment should never be at the sole discretion of a President, as Trump has demonstrated that such power begs abuse.

    Ultimately, U.S. military members are trained to engage the enemies of the United States abroad with deadly force, not to arrest migrants on the Southern Border or to deport them from U.S. cities.  The military has a sacred role in our country, but the public’s trust is easily lost, and a pillar of our society is cracked when the commander-in-chief uses the military recklessly. 

    Our constitutional system is fundamentally designed to separate military and civilian roles, reserving police powers for law enforcement agencies, and endowing the military with the superior weaponry and firepower necessary to fight and win the nations’ wars.  When we allow the military to be used in the routine exercise of the police power, the nation teeters on the brink of autocracy and military rule.  One need not be a student of history to see how easily this backsliding can occur.  It is all around us in the world today.

    Trump’s clear intent to use the U.S. military in potentially illegal and certainly inappropriate ways for his own political benefit is antithetical to the spirit of our American democracy. Such power is the hallmark of authoritarians around the world.

    President Trump and Secretary Hegseth must use common sense, follow the law, and immediately cease the military border deployments and deportation flights.  And my colleagues, particularly my colleagues in the majority, should demand the same and hold the Administration accountable for its actions.

    I yield the floor.

    MIL OSI USA News

  • MIL-OSI USA: May 8th, 2025 Heinrich Presses Agriculture Secretary on DOGE’s Targeting of Silver City Dispatch Center, USDA Canceling Contracts that Help Local Farmers, Schools, & Kids

    US Senate News:

    Source: United States Senator for New Mexico Martin Heinrich

    WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.), Member of the Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, pressed U.S. Department of Agriculture (USDA) Secretary Brooke Rollins on proposed cuts in President Trump’s Fiscal Year 2026 (FY26) Preliminary Budget Request, which slashes critical investments that benefit New Mexico families to fund massive tax handouts for billionaires like Elon Musk.

    Specifically, Heinrich questioned Secretary Rollins on DOGE targeting the Silver City Dispatch Center as the Iron Fire burns, USDA canceling contracts that help local farmers sell fresh produce to food banks and schools, and the status of programs that feed starving children around the world with American-grown food through the Food for Peace program.

    VIDEO: U.S. Senator Martin Heinrich (D-N.M.) questions USDA Secretary Brooke Rollins on President Trump’s proposed budget cuts, which slash critical investments that benefit New Mexico families to fund massive tax handouts for billionaires like Elon Musk, May 6, 2025.

    On DOGE Targeting the Silver City Dispatch Center:

    Heinrich began his questioning, “Secretary, the Iron Fire is currently burning in the Gila National Forest, and you and I have talked about the Silver City Dispatch Center, which is in charge of coordinating the response between air assets and front-line firefighters in the Southwest. It is still among the dispatch centers that DOGE is seeking to close. And in our conversations, you assured me that you would seek to keep this dispatch center open, that you would designate it mission critical. Talk to me about what you are doing to make good on that promise.”

    Rollins responded, “Yeah, we have been in conversation with GSA on that, Senator, and certainly, as we have many hands working across the Trump Administration to deliver on our promise for a more effective and efficient government. We agree that this is important, and especially as wildfire season is heating up, ensuring that we are operationally ready at every turn in your state and in other states that are highly affected by that, so we remain focused on that, and if you hear something different, please call me.”

    On Trump’s USDA Canceling Contracts that Help Local Farmers Sell Fresh Produce to Schools and Feed Students:

    Heinrich began by highlighting that the local food purchasing assistance and local food for school programs are,“two of the best examples of using American-grown produce to produce healthier outcomes in our students. To me, that is making America healthy again. You’ve canceled both of those contracts, even though those contracts were signed and farmers had bought supplies for planting based on those contracts.

    Heinrich continued by asking, “What would you say to both the producers and the schools who made financial decisions based on those commitments?”

    Rollins responded, “The first thing I’ll say is, could you send me specific information on that? Because that would be really helpful. We’ve talked a lot in broad strokes, but if I can see the details in New Mexico, you still have a million and a half dollars of the last tranche left out of 6 million.”

    Heinrich pressed Rollins, “The people I’m hearing from are literally the schools and the producers who were impacted, the growers.”

    Rollins responded, “Yeah, I would love to get more details on that and what that looks like again, as a COVID-era program. The other side of this, and I want to make sure you’ve got plenty of time to ask your other questions. But the other side of this, as far as the local nutritious farms, et cetera. I mean, I think that’s a massive push. I think it’s important we remain prioritized on that. But again, the $400 million a day we spend at USDA on nutrition, just on nutrition, I believe sincerely, that we’ll be able to check a lot of those boxes without continuing a program that was supposed to end at the end of COVID and that, in fact, most states still have a lot of money left in the bank. They haven’t been able to spend it.”

    On Trump Threatening the Food for Peace Program:

    Heinrich asked: “My colleague from Kansas mentioned Food for Peace and McGovern-Dole. These programs have provided life-saving American-grown food to people around the world. I have literally met with mothers and children who relied on American food aid for their survival. So I appreciate that you’ve had initial discussions with Secretary Rubio about these programs, but what I saw two weeks ago with several of my Republican colleagues on the ground at a refugee camp were kids who were on fractional rations who didn’t have enough calories per day to thrive. So what are we doing to fill the gap between the historic commitment of those programs and whatever that, you know, replaces them in the meantime, when the impact is kids who are not getting enough to eat?”

    Rollins responded: “And you’re talking specifically on the International Programs, yes, that, that’s, that’s a great conversation. We continue to talk about it. The President has been very clear that we have to ensure that our kids here in America that are hungry, that we’re serving, obviously, they are the priority. It doesn’t mean that we don’t care about or want to move out American farmers’ produce, and we should in commodities across the world, but really focusing here in America first, but secondly, understanding how effective these programs are, which I talked a little bit about with the back and forth with Senator Baldwin. I think it may have been Senator Murray, but how important and effective those are, where we’re spending the money, how it’s being spent, and what that looks like.”

    Heinrich pushed Rollins, “You’ll get a lot of support from this Committee to, to go after overhead, excess overhead, I think we have to check too many boxes, and there are a lot of entities that have gotten good at running those contracts because they can check those boxes. But what we saw on the ground was kids who had malaria and other diseases because they simply didn’t have enough food to eat, because commitments we made were not being made good on.”

    Rollins responded: “Well, I would love more details on that that would help me understand and in fact, where it was y’all went, and then my commitment to you is to study that, and in my, you know, my heart is with what you’re saying. But again, we are putting American first, understanding how we’re feeding our children. And we haven’t had a MAHA discussion yet, but if we do, we can talk a little bit more about that is important. But also understanding that, again, the mission and the intention of these programs are always good. It is how we are effectuating them and putting them into play and really looking at that closely.”

    MIL OSI USA News

  • MIL-OSI USA: LEADER JEFFRIES HOSTS CAPITOL HILL LISTENING SESSION WITH FAITH LEADERS FROM ACROSS THE NATION

    Source: United States House of Representatives – Congressman Hakeem Jeffries (8th District of New York)

    WASHINGTON, D.C.—This week, House Democratic Leader Hakeem Jeffries (NY-08) hosted 41 faith leaders and clergy members at the Library of Congress for a listening session.

    Joined by Rep. James Clyburn (SC-06) and Rep. Emanuel Cleaver (MO-05), Leader Jeffries held a listening session to hear from clergy members about their suggestions as part of House Democrats’ all-hands-on-deck strategy to bring about a better tomorrow for the American people.

    “The meeting was an initial convening and listening session of faith leaders and clergy members from across the nation and I look forward to our continued dialogue as we deal with this unprecedented moment in American history. During these very challenging times, I am grateful for the partnership, the friendship and the leadership of the clergy on all the things that need to happen to get our nation to a better place,” said House Democratic Leader Hakeem Jeffries (NY-08). “At a moment like this, we are experiencing trouble on every side. Trouble in the White House, trouble with the Congress, trouble with the Cabinet, trouble with Elon Musk, an unelected, unaccountable, unpopular, unhinged, un-American, billionaire puppet master. But we’re not in despair because we know that setbacks are an inevitable part of life. That’s just the reality of our journey and we’ve seen that over and over and again in the United States of America. Setbacks are an inevitable part of life, but a setback is nothing more than a setup for a comeback. And in our view, what’s in front of us right now, is that we have to engineer the great American comeback.”

    “Having been born and raised in a church parsonage, I understand the connection between faith and public service. The convening on Capitol Hill of influential African American clergy from around the country could not be more critical,” said Congressman James E. Clyburn (SC-06). “We discussed protecting vital programs against proposed cuts to Social Security, Medicare, Medicaid, veterans benefits and how this impacts their congregants and all Americans. Across traditions and cultures, people of faith are commanded to care for the least of these. The House Republican budget fails to care for the vulnerable, and it is incumbent upon all of us to correct this. We tend to profess pride in being Matthew 25 Christians, and we often express adherence to verse 45 that admonishes, ‘whatever you did not do for one of the least of these, you did not do for me.’”

    “In this moment of moral crisis in America, it is more important than ever that faith leaders unite to provide the light needed to guide the country back toward the course of righteousness,” said Congressman Emanuel Cleaver (MO-05). “I’m thankful to Leader Jeffries for taking the time to sit down with myself, Rep. Clyburn and clergy from across the country to coordinate a faith-led response to the chaos and cruelty emanating from the White House. Whether those seeking affordable healthcare, those in need of food assistance or those seeking a better life in the United States of America, we have an obligation to protect the least of these in our communities; and together, we will.”

    The clergy has been at the forefront of every major fight for social justice in America and continues to provide a voice of moral clarity as we endeavor to meet the challenging moment we confront. This conversation is the first in a series of ongoing engagements with community leaders to strengthen the relationship between House Democrats and the American people who we are fighting to protect.

    ###

    MIL OSI USA News

  • MIL-OSI USA: Rep. Moore Statement on Election of Pope Leo XIV

    Source: United States House of Representatives – Representative Riley Moore (WV-02)

    Washington, D.C. – Congressman Riley M. Moore, a Roman Catholic, issued the following statement after the election of Pope Leo XIV:

    “Habemus papam & Deo gratias — an American has been elected to the chair of St. Peter!

    “I pray the Lord blesses the Holy Father with the great wisdom and unyielding courage necessary to preach the Gospel of Jesus Christ and Him crucified.

    “Here’s to many years of good health for Pope Leo XIV as he shepherds our universal church as the Vicar of Christ.”

    ###

    MIL OSI USA News

  • MIL-OSI USA: Salinas, Bacon, Beyer Launch Bipartisan Mental Health Caucus For The 119th Congress

    Source: United States House of Representatives – Representative Don Beyer (D-VA)

    Today, U.S. Representative Andrea Salinas (D-OR) joined her fellow Co-Chairs of the Bipartisan Mental Health Caucus – including Reps. Don Bacon (R-NE) and Donald Beyer (D-VA) – at a press conference to officially launch the Caucus for the 119th Congress. The Members, standing side-by-side with representatives from leading mental health advocacy organizations, delivered remarks about the state of mental health and addiction in America and the potential for bipartisan progress on this issue. Rep. Tony Gonzales (R-TX) also serves as Caucus Co-Chair along with Reps. Salinas, Bacon, and Beyer.

    Click here to watch a recording and here for usable photos from today’s press conference

    “Mental health is an issue where bipartisan consensus is still possible. I remain very hopeful. We’ve seen how these problems have affected our own families, neighborhoods, and communities – and we all share a similar goal: Putting an end to the mental health and addiction crisis once and for all,” said Rep. Salinas. “I am optimistic and excited about the road ahead. Because we have partners, parents, providers and yes – even politicians – who want to see change and are ready to roll up our sleeves and get to work on commonsense solutions.

    “We do have a mental health crisis in our country, and I think it’s pretty clear to all of us that we have underfunded mental health care,” said. Rep. Bacon. “I look forward to working with our Co-Chairs and all of you to improve our mental health capabilities in this country. We know the problem. That means we can find the solution.”

    “We want this to be the largest Caucus on the Hill. We should have every Democrat and every Republican in it because every family, if you look just hard enough, you’ll find that they’re dealing with some kind of mental health concern… and I think we all agree that the health system is failing,” said Rep. Beyer. “We do a very poor job at dealing with serious mental illness in this country. That’s why I’m so grateful that my colleagues [Reps. Salinas, Bacon, and Gonzales], and the many, many other Democrats and Republicans who have signed up to be part of this [Caucus], have come together with our mental health professionals and our industry leaders to really try to make a difference.”

    Several mental health professionals and advocates also spoke at the press conference, including Theresa Miskimen Rivera, M.D., President-Elect of the American Psychiatry Association (APA), Michael Linskey, Director of Congressional Affairs at the National Alliance on Mental Illness (NAMI), Laurel Stine, Executive Vice President and Chief Advocacy and Policy Officer at the American Foundation for Suicide Prevention (AFSP), and Tim Clement, Vice President of Federal Government Affairs at Mental Health America (MHA).

    Chaired by Reps. Salinas, Bacon, Beyer, and Gonzales, the Bipartisan Mental Health Caucus serves as a bipartisan forum where Members of Congress and their staff can work together to raise awareness and find solutions to the mental and behavioral health crisis in America. A full list of Caucus Members can be found here.

    To receive updates and learn more about the Bipartisan Mental Health Caucus, you can visit the Caucus’ website or follow the Caucus on Bluesky, X, Facebook, and Instagram.

    MIL OSI USA News

  • MIL-OSI USA: Wasserman Schultz, Soto, Salazar Introduce Bipartisan Legislation to Designate Venezuela for Temporary Protected Status

    Source: United States House of Representatives – Representative Debbie Wasserman Schultz (FL-23)

    “It is simply wrong to subject law-abiding Venezuelan families to a criminal, murderous regime that openly and flagrantly violates human rights,” said Wasserman Schultz. “TPS recipients are not criminals—they are here legally and nobody with a criminal record is eligible for protection. I’m proud to join this bipartisan effort to prevent Venezuelan families in my district from being unjustly torn apart while we continue to fight for a free and prosperous Venezuela under democratic leadership.”

    Washington, DC – Today, Florida Reps. Debbie Wasserman Schultz (D-FL-25), Darren Soto (D-FL-09), María Elvira Salazar (R-FL-27) introduced the bipartisan Venezuela TPS Act of 2025, legislation designating Venezuela for Temporary Protected Status. This comes after U.S. Secretary of Homeland Security Kristi Noem announced the termination of Venezuela’s TPS extension by the Biden Administration, affecting more than half a million Venezuelans who currently hold protected status.

    “It is simply wrong to subject law-abiding Venezuelan families to a criminal, murderous regime that openly and flagrantly violates human rights,” said Wasserman Schultz. “TPS recipients are not criminals—they are here legally and nobody with a criminal record is eligible for protection. I’m proud to join this bipartisan effort to prevent Venezuelan families in my district from being unjustly torn apart while we continue to fight for a free and prosperous Venezuela under democratic leadership.”

    “We are concerned by the Trump Administration’s actions to strip Venezuelans of Temporary Protected Status, parole, and other critical protections during a time of major instability in their country. In Central Florida, thousands of Venezuelans have fled political violence and joined family members already living in the United States, contributing to our economy, and working hard to help our community grow,” said Soto. “It is insulting to turn our backs on this group. Now more than ever, we need to come together to protect our community from unjust treatment and unconstitutional deportations.”

    “The oppression of the Maduro regime and the total failure of socialism of the 21st century has created dangerous conditions in Venezuela and a constant threat of political persecution,” said Salazar. “That’s why I am proud to co-lead the Venezuela TPS Act of 2025— to ensure law-abiding Venezuelans currently in the United States can stay here until conditions improve and they are not forcibly returned to a brutal dictatorship. I will continue fighting for a free and prosperous Venezuela, led by its legitimate President Edmundo Gonzalez and the Iron Lady Maria Corina Machado.”

    The Venezuela TPS Act of 2025 automatically designates Venezuela for TPS for an initial period of 18 months, with the option of renewal. Under TPS, Venezuelans would be shielded from deportation and granted work authorization, allowing individuals to pay taxes and contribute to their communities. The Act also provides for individuals to travel abroad for emergencies and extenuating circumstances.

    Political instability, endemic corruption, and repression under Nicolás Maduro’s authoritarian regime has led to massive food and medicine shortages, with millions living in poverty and suffering from food insecurity. Venezuela’s economy has contracted by more than 80% since 2014, which is more than twice the magnitude of the Great Depression in the United States. Due to the ongoing crisis in Venezuela, Venezuelans have consistently been the leading nationality requesting asylum in the United States since 2016. As of June 2023, United Nations agencies believe that over 7.3 million Venezuelans have fled the country, many of whom have resettled in neighboring countries like Colombia and Brazil. 

    Venezuelan nationals will be eligible for TPS if they:

    ·    Have been continuously physically present in the United States since the date of the bill’s enactment;

    ·    Are admissible to the United States; and

    ·    Register for TPS in a manner established by the U.S. Secretary of Homeland Security.

    For the full text of the bill, click here

    ####

    Wasserman Schultz, Soto, Salazar Presentan Proyecto de Ley Bipartidista Para Designar a Venezuela al Estatus de Protección Temporal

    La Ley de TPS para Venezuela del 2025 protegería a más de medio millón de ciudadanos venezolanos que actualmente tienen estatus protegido

    Washington, DC – Hoy, representantes de la Florida Debbie Wasserman Schultz (D-FL-25) Darren Soto (D-FL-09), y María Elvira Salazar (R-FL-27) presentaron la Ley de TPS para Venezuela del 2025, un proyecto de ley bipartidista que designaría a Venezuela al Estatus de Protección Temporal (TPS, por sus). Este proyecto de ley se produjo después de que la secretaria de Seguridad Nacional de los Estados Unidos, Kristi Noem, anuncio la terminación de la extensión del TPS para Venezuela por parte de la Administración Biden, que afecta a más de medio millón de ciudadanos que actualmente tienen estatus protegido.

    “Es simplemente un error someter a las familias venezolanas respetuosas de la ley a un régimen criminal y asesino que viola abierta y flagrantemente los derechos humanos,” dijo la congresista Wasserman Schultz. “Los beneficiarios del TPS no son criminales, están aquí legalmente y nadie con antecedentes penales es elegible para la protección. Estoy orgullosa de unirme a este esfuerzo bipartidista para evitar que las familias venezolanas en mi distrito sean injustamente separadas mientras continuamos luchando por una Venezuela libre y próspera bajo un liderazgo democrático.”

    “Estamos preocupados por las acciones de la Administración Trump para sacarle a los venezolanos los beneficios del Estatus de Protección Temporal, la libertad condicional y otras protecciones críticas durante un momento de gran inestabilidad en su país. En Florida Central, miles de venezolanos han huido de la violencia política y se han unido a sus familiares que actualmente viven en los Estados Unidos—contribuyendo a la economía y trabajando arduamente para ayudar a que nuestra comunidad crezca,” dijo el congresista Darren Soto. “Darle la espalda a este grupo es un gran insulto. Ahora más que nunca, necesitamos unirnos para proteger a nuestra comunidad contra trato injusto y las deportaciones inconstitucionales.”

    “La opresión del régimen de Maduro y el fracaso total del socialismo del siglo XXI ha creado condiciones peligrosas en Venezuela y una amenaza constante de persecución política,” dijo la congresista Salazar. “Es por eso que me enorgullece coliderar la Ley de TPS para Venezuela del 2025, para garantizar que los venezolanos respetuosos de la ley que actualmente se encuentran en los Estados Unidos puedan permanecer aquí hasta que las condiciones mejoren y no sean devueltos a la fuerza a una dictadura brutal. Seguiré luchando por una Venezuela libre y próspera, liderada por su legítimo presidente Edmundo González y la Dama de Hierro María Corina Machado.”

    La Ley de TPS para Venezuela del 2025 automáticamente designaría a Venezuela para TPS por un período inicial de 18 meses, con opción de renovación. Bajo el TPS, los venezolanos estarían protegidos contra la deportación y se les otorgaría autorización de trabajo, permitiéndoles a los beneficiarios pagar impuestos y contribuir a sus comunidades. El proyecto de ley también prevé que los beneficiarios viajen al extranjero por situaciones de emergencia y circunstancias atenuantes.

    La inestabilidad política, la corrupción endémica y la represión bajo el régimen autoritario de NicolásMaduro han provocado una escasez masiva de alimentos y medicamentos, con millones de personasviviendo en la pobreza y sufriendo inseguridad alimentaria. 

    La economía de Venezuela se ha contraídoen más del 80% desde el 2014, más del doble de la magnitud de la Gran Depresión en los EstadosUnidos. Debido a la crisis en Venezuela, los venezolanos han sido consistentemente la principalnacionalidad que solicita 

    asilo en los Estados Unidos desde el 2016. Hasta junio del 2023, las agenciasde las Naciones Unidas creen que más de 7,3 millones de venezolanos han huido del país, muchos delos cuales se han reasentado en países vecinos como Colombia y Brasil.

    Los ciudadanos venezolanos serán elegibles para el TPS bajo estas condiciones: 

    ·    Haber estado físicamente presente continuamente en los Estados Unidos desde la fecha de promulgación del proyecto de ley; 

    ·    Ser admisibles a los Estados Unidos; y 

    ·    Registrarse para el TPS de la manera establecida por el/la secretario/a de Seguridad Nacional de los Estados Unidos.

    Para ver el texto completo del proyecto de ley, haga clic aquí.  

    ####

    MIL OSI USA News

  • MIL-OSI USA: REP LIEU, SEN MURRAY AND SEN BOOKER RE-INTRODUCE FEDERAL CONVERSION THERAPY BAN

    Source: United States House of Representatives – Congressman Ted Lieu (33 District of California)

    WASHINGTON – Today, Congressman Ted W. Lieu (D-Los Angeles County), Senator Patty Murray (D-WA) and Senator Cory Booker (D-NJ) reintroduced their federal ban on LGBTQ conversion therapy. The Therapeutic Fraud Prevention Act seeks to ban conversion therapy, a practice where so-called therapists fraudulently claim they can ‘cure’ children of their LGBTQ identities. The practice has been recognized by the national community of professionals in education, social work, health, and counseling as being both dangerous and useless. 

    Congressman Lieu authored the first ever ban on youth conversion therapy in the nation as a California State Senator. He has introduced federal bans in the 114th, 115th, 116th, 117th and 118th Congresses. Senators Patty Murray (D-WA) and Cory Booker (D-NJ) introduced the Senate version today and previously introduced federal bans in the 114th, 115th, 116th, 117th and 118th Congresses.

    “Conversion therapy is a scam that hurts LGBTQ kids,” said Rep. Lieu “Using fake science and unearned credentials, conversion therapists prey on vulnerable kids to convince them that who they are is not okay. Major medical organizations oppose the practice because it is harmful and ineffective. We’re overdue for a national ban and I am pleased to once again partner with Senators Murray and Booker on this bill.”

    “Conversion therapy is based on the hateful idea that being part of the LGBTQ+ community is an illness that requires treatment. It’s a dangerous sham practice that has been completely debunked and should be banned nationwide—and that’s what our legislation would do,” said Senator Murray. “Our kids deserve to be raised and taught in loving environments that affirm who they are. I’ll keep fighting for a world where every person, no matter their gender or sexual orientation, can live with dignity and without fear.”

    “There is no place in health care for practices rooted in hateful ideology that harms vulnerable children who are a part of the LGBTQ+ community,” said Senator Booker. “Being LGBTQ+ is not an illness, and conversion therapy is a fraudulent treatment that tells children their identity is an illness that must be cured. This legislation would clarify that under the FTC that ‘conversion therapy’ in exchange for monetary compensation is illegal, and ensure that no child is a victim to this discredited, harmful practice.”

    Human Rights Campaign Director of Government Affairs Jennifer Pike Bailey:

    “The reintroduction of the Therapeutic Fraud Prevention Act is a critical step forward in protecting LGBTQ+ individuals, especially our youth, from the dangerous and discredited practice of conversion therapy. The bill affirms that no one should profit from misleading and dangerous attempts to change something that is not a choice: a person’s sexual orientation or gender identity. The scientific and medical communities have overwhelmingly rejected conversion therapy, and this bill further ensures that practices that cause real long-term harm have no place in our society. We thank Senators Murray and Booker and Representative Lieu for their leadership on this issue.”

    The Trevor Project Interim Vice President of Advocacy & Government Affairs Mark Henson

    “We all want kids to be healthy and safe. Yet LGBTQ+ youth across the country are in crisis today as they hear messages of rejection — not just from peers or online bullies, but from adults and systems meant to protect them. All young people deserve to live authentically as who they are and be protected from dangerous, discredited conversion therapy practices that are associated with greater suicide risk and have been condemned by every major U.S. professional medical and mental health association. No amount of talk or pressure can make someone change their sexual orientation or gender identity—decades of research show it simply doesn’t work . The Trevor Project applauds the reintroduction of the Therapeutic Fraud Prevention Act of 2025, which will help protect LGBTQ+ youth from being subjected to these harmful practices and instead celebrate them for who they are.” 

    PFLAG National CEO Brian K. Bond

    Like most people with health questions, the LGBTQ+ people, parents and allies of PFLAG work together with their doctors, who follow standards of care and clinical guidelines that have been recognized as authoritative for decades by trusted mainstream medical organizations like the American Medical Association, the American Academy of Pediatrics and the American Psychological Association. These and every mainstream medical association denounce practices of so-called conversion ‘therapy’ as discredited and dangerous. The Therapeutic Fraud Prevention Act would protect vulnerable people who are seeking trusted help from being lured into a pretense for dangerous conversion therapies. PFLAG National thanks Congressman Lieu and Senator Murray for their leadership in reintroducing this important bill.”

    American Psychological Association CEO Arthur C. Evans Jr., PhD.:

    “The American Psychological Association thanks Representative Ted Lieu, Senator Patty Murray, and Senator Cory Booker for the reintroduction of the Therapeutic Fraud Prevention Act. This bill would ban so-called conversion therapy by labeling it a fraudulent practice under the Federal Trade Commission’s authority. APA has a long history of opposing sexual orientation change therapy based on peer-reviewed research studies. APA has also adopted several policies concluding that there is insufficient scientific evidence to support the use of psychological interventions to change sexual orientation. We support this bill and stand ready to advocate for its passage.”

    ###

    MIL OSI USA News

  • MIL-OSI USA: ICE San Diego arrests Mexican national with extensive criminal history after erroneous release

    Source: US Immigration and Customs Enforcement

    San Diego — On May 7, Enforcement and Removal Operations San Diego arrested

    Humberto Lopez, 50, a citizen of Mexico. Lopezwas previously in custody at the San Diego County jail on assault with a deadly weapon charge. Despite an active federal arrest warrant, the San Diego County Sherriff’s office released Lopez without notifying ICE, the warrant-issuing agency.

    This arrest exemplifies how SB 54 continues to foster an environment where local agencies hesitate to cooperate with federal immigration authorities, even when legally required. Such legislation forces ICE to operate within communities in ways that inherently increase risks to officers, as it forces ICE to pursue individuals in unpredictable and potentially unsafe situations rather than through secure custodial exchange.

    Lopez has a lengthy criminal history, including convictions for assault with a deadly weapon, narcotics trafficking, robbery, and theft. Lopez subsequently re-entered the U.S. illegally, posing a danger to the community and continuing to violate U.S. laws. ERO San Diego served Lopez with a notice of intent to reinstate his prior removal order, and the U.S. Attorney’s Office accepted the case for prosecution. He will be turned over to U.S. Marshals’ custody pending arraignment.

    Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

    Learn more about ICE’s mission to increase public safety in San Diego on X, formerly known as Twitter, at @EROSanDiego

    MIL OSI USA News

  • MIL-OSI USA: Gov. Kemp Signs Legislation Delivering Hurricane Helene Relief and Supporting Georgia Agriculture and Forestry

    Source: US State of Georgia

    ATLANTA – Governor Brian P. Kemp, joined by First Lady Marty Kemp, Agriculture Commissioner Tyler Harper, Georgia Forestry Commission Director Johnny Sabo, constitutional officers, and members of the Georgia General Assembly, signed three pieces of legislation that provides support for Georgia’s agriculture and forestry industry and delivers promised relief to farmers and timber producers impacted by Hurricane Helene.

    “Our farmers and foresters are tough people,” said Governor Brian Kemp. “Their commitment to moving forward after all they’ve faced is an inspiration to us all. There is still more work to be done, but I’m proud to sign these bills and deliver on our promises to the men and women who are the backbone of our state. I’m also grateful for the dedicated efforts of all of our partners in the General Assembly whose steadfast leadership and determination helped make today possible.”

    HB 223, a priority of Governor Brian Kemp, championed by Lieutenant Governor Burt Jones, Speaker Jon Burns, Commissioner Tyler Harper, Representative Chuck Efstration, and Committee Chairmen Shaw Blackmon, Chuck Hufstetler, Matt Hatchett, Blake Tillery, sponsored by Representative James Burchett, carried in the Senate by Senator Russ Goodman, exempts federal crop loss payments and disaster payments from state income tax, establishes a reforestation tax credit to help timber producers recover from the storm and encourage them to replant their crop, allows local governments to temporarily suspend their collection of harvest tax on timber producers to assist them in cleanup efforts, and provides a temporary addition to the Georgia Agricultural Tax Exemption (GATE) for building materials to repair and rebuild poultry houses, livestock facilities, greenhouses, and other agricultural structures.

    In addition to HB 223 Governor Kemp signed the following pieces of legislation:

    SB 201, sponsored by Senator Larry Walker and carried in the House by Representative Leesa Hagan, provides increased protection for consumers when entering into contracts with contractors following natural disasters. 

    HB 143, sponsored by Representative Robert Dickey, carried in the Senate by Senator Sam Watson, and championed by the Georgia Environmental Protection Division, shifts the burden of agricultural water metering equipment installation and maintenance from farmers back to the state.

    Governor Kemp extends his appreciation to all of those whose diligent work and efforts led to him being able to sign these bills today.

    MIL OSI USA News

  • MIL-OSI USA: Celebrating NY FFA’s 100th Anniversary

    Source: US State of New York

    [embedded content]

    [embedded content]

    New York State Agriculture Commissioner Richard A. Ball said, “There’s a long list of things that make The Great New York State Fair the best in the nation, but its continued focus on agriculture is what truly sets it apart, and its deep partnership with FFA has been a huge part of that. I can’t think of a better way to celebrate this powerful program’s centennial than by breaking ground on a new building that will help introduce a whole new generation of young people to the value of our industry and inspire them to pursue meaningful careers in agriculture. I want to thank our Governor, our partners across the state, and of course our very own NY FFA who share this vision and make it a priority – because of their work, I know the future of agriculture is bright.”

    New York State Office of General Services Commissioner Jeanette Moy said, “Agriculture is a major driver of New York’s economy, providing a source of fresh food and income to people across our state. OGS is proud to partner with the State Department of Agriculture and Markets in the construction of a 4,000-square-foot building at the Great New York State Fairgrounds. This new facility will further demonstrate Governor Hochul, Commissioner Ball, and our support for New York State’s farmers and FFA’s efforts to prepare its members for careers in all sectors of the agricultural industry. As FFA marks 100 years of its annual convention here, there’s no better opportunity for us to break ground on this new space.”

    New York State FFA Director Juleah Tolosky said, “For 100 years, New York FFA has empowered students to lead, serve, and grow in agriculture and beyond. This new building at the Fairgrounds is more than a structure — it’s a symbol of what happens when we invest in young people and believe in their potential. We’re grateful to Governor Hochul and Commissioner Ball and our partners across the state for supporting a vision that honors our past while building a stronger future for agricultural education.”

    Dean of Cornell University’s College of Agriculture and Life Sciences Benjamin Houlton said, “The FFA is one of the most important organizations of America’s agricultural leadership—past, present and future. The historic celebration of the organization’s success reflects the commitment of many generations of farmers, agribusiness innovators and natural resources professionals to serve the foundation of society with the food they produce. At CALS, we are so grateful for our state partners’ unyielding support and proud to see a growing number of FFA students join us in shaping the future of agriculture—whether through a CALS or SUNY college degree, technical training or direct-to-career paths. There has never been a more exciting time for agriculture, and this generation of agriculture innovators will ensure that the country is in a strong position for continued prosperity.”

    New York State Fair Director Julie LaFave said, “The Great New York State Fair is a tradition rooted in agriculture, and our work with the New York State FFA has been the driving force behind keeping this tradition alive. Here at the Fair, these incredible students showcase their projects, participate in competitions, and teach tens of thousands of Fairgoers what New York agriculture is all about. We’re thrilled to help this remarkable organization celebrate its 100th anniversary by investing in a new building right here at the Fair that will help spotlight their work and introduce more young people to the importance of this industry. I congratulate FFA on their centennial, and thank Governor Hochul, a 4-H kid who knows firsthand the value of ag education, for her support of this critical investment.”

    Supporting agricultural education is essential to developing a generation of leaders who understand where our food comes from and value the hard work of our farmers.

    Governor Kathy Hochul

    New York State Agriculture Commissioner Richard A. Ball said, “There’s a long list of things that make The Great New York State Fair the best in the nation, but its continued focus on agriculture is what truly sets it apart, and its deep partnership with FFA has been a huge part of that. I can’t think of a better way to celebrate this powerful program’s centennial than by breaking ground on a new building that will help introduce a whole new generation of young people to the value of our industry and inspire them to pursue meaningful careers in agriculture. I want to thank our Governor, our partners across the state, and of course our very own NY FFA who share this vision and make it a priority – because of their work, I know the future of agriculture is bright.”

    New York State Office of General Services Commissioner Jeanette Moy said, “Agriculture is a major driver of New York’s economy, providing a source of fresh food and income to people across our state. OGS is proud to partner with the State Department of Agriculture and Markets in the construction of a 4,000-square-foot building at the Great New York State Fairgrounds. This new facility will further demonstrate Governor Hochul, Commissioner Ball, and our support for New York State’s farmers and FFA’s efforts to prepare its members for careers in all sectors of the agricultural industry. As FFA marks 100 years of its annual convention here, there’s no better opportunity for us to break ground on this new space.”

    New York State FFA Director Juleah Tolosky said, “For 100 years, New York FFA has empowered students to lead, serve, and grow in agriculture and beyond. This new building at the Fairgrounds is more than a structure — it’s a symbol of what happens when we invest in young people and believe in their potential. We’re grateful to Governor Hochul and Commissioner Ball and our partners across the state for supporting a vision that honors our past while building a stronger future for agricultural education.”

    Dean of Cornell University’s College of Agriculture and Life Sciences Benjamin Houlton said, “The FFA is one of the most important organizations of America’s agricultural leadership—past, present and future. The historic celebration of the organization’s success reflects the commitment of many generations of farmers, agribusiness innovators and natural resources professionals to serve the foundation of society with the food they produce. At CALS, we are so grateful for our state partners’ unyielding support and proud to see a growing number of FFA students join us in shaping the future of agriculture—whether through a CALS or SUNY college degree, technical training or direct-to-career paths. There has never been a more exciting time for agriculture, and this generation of agriculture innovators will ensure that the country is in a strong position for continued prosperity.”

    New York State Fair Director Julie LaFave said, “The Great New York State Fair is a tradition rooted in agriculture, and our work with the New York State FFA has been the driving force behind keeping this tradition alive. Here at the Fair, these incredible students showcase their projects, participate in competitions, and teach tens of thousands of Fairgoers what New York agriculture is all about. We’re thrilled to help this remarkable organization celebrate its 100th anniversary by investing in a new building right here at the Fair that will help spotlight their work and introduce more young people to the importance of this industry. I congratulate FFA on their centennial, and thank Governor Hochul, a 4-H kid who knows firsthand the value of ag education, for her support of this critical investment.”

    Agricultural Education in New York State
    New York State continues to prioritize investments in agricultural education to support workforce development and ensure that agriculture remains a viable industry in New York State. In 2024, Governor Hochul increased support for the FFA by $250,000 for a total of $1.25 million and dedicated $500,000 to support the New York Agriculture in the Classroom program and $500,000 for the New York Association of Agricultural Educators to increase the number of certified agricultural educators in the state. In addition, $250,000 was included in support of Urban Agricultural Education and $50,000 for the MANRRS program.

    Additionally in 2024, the Governor convened the first ever youth agriculture leadership conference. Following the conference, the Governor announced the establishment of a Blue-Ribbon Panel to Advance Agriculture Education, which will bring together food and agriculture industry stakeholders, educational institutions, and educators to chart a course for strengthening agriculture education and supporting the multi-faceted needs of the workforce.

    The State’s efforts are paying off, with the number of agricultural teachers growing to 424 in 2025. Alongside this growth in teachers, the number of FFA charters and members has also increased. With 224 chapters established in 52 of New York’s 62 counties, there are now over 13,000 FFA members in New York State, an increase from 9,300 in 2022. In 2016, the State Agriculture Commissioner challenged the FFA to increase its number of charters across the State by 100; the FFA reached that goal in time for its 100th anniversary this year, an exciting benchmark as it celebrates its centennial and looks forward to the next hundred years.

    In addition, there are currently five MANRRS collegiate chapters statewide, up from just two in 2022, and one junior chapter at John Bowne High School in New York City. Today, there is also a 4-H program in all 62 counties in New York State, providing educational opportunities to young people interested in agriculture in every corner of the State. Together, these programs help meet the growing demand for agricultural education across New York.

    Embedded Flickr Album

    State Senator Michelle Hinchey said, “New York is the fastest-growing FFA state in the country, and for 100 years, this incredible program has been the bedrock of outstanding student leadership in our state, helping students find their strengths, find ways to serve their communities, and become leaders in every sector of the agriculture industry and beyond it. Congratulations to New York FFA on its centennial—the future of New York looks exceptionally bright with such dedicated young leaders at the forefront.”

    State Senator Rachel May said, “The longevity of New York’s FFA program underscores its significance to agriculture in our state. For 100 years, this program has been educating the next generation of farmers, ensuring that our vital agricultural sector remains strong. The history of the New York State Fair is closely linked to the FFA program, so it’s only appropriate that it has a dedicated building on the fairgrounds, showcasing its significance to our state. Thank you, Governor Hochul, for recognizing the importance of the FFA program with this new facility and support for New York State agriculture.”

    Assemblymember Donna Lupardo said, “FFA is one of the premier youth leadership development organizations in our country. Members have gone on to successful careers as farmers, chemists, government officials, business leaders, teachers, and more. The hands-on experience this organization provides is invaluable, and with the new FFA Building at the State Fairgrounds, they will have the opportunity to showcase their work in an impressive new facility. Congratulations to the FFA on their centennial.”

    Assemblymember Al Stirpe said, “I would like to congratulate the New York FFA for this historic milestone, marking a century of inspiring the agricultural leaders of tomorrow. As a stronghold for Northeastern agriculture, New York thrives thanks to organizations like FFA that help students realize their potential in the agricultural classroom and beyond. I look forward to the construction of the new FFA building, as well as the growth of their now 224 chapters across the state.”

    Assemblymember Bill Magnarelli said, “The New York State Fair and New York State FFA have a long and storied history going back 100 years together. I applaud the work that organizations like New York State FFA and 4-H do in providing quality agricultural education to future generations to continue New York State’s long tradition of farming.”

    About New York State FFA
    Administered by Cornell University, the New York State FFA Association is a youth organization that helps middle and high school students become leaders in a variety of career fields, including agriculture. NY FFA develops premier leadership, personal growth and career success through activities and opportunities nationwide. Learn more about NY FFA at www.nysffa.org.

    About the New York State Fair
    Founded in 1841, The Great New York State Fair showcases the best of New York agriculture, provides top-quality entertainment, and is a key piece of the State’s CNY Rising strategy of growing the Central New York economy through tourism. It is the oldest fair in the United States and is consistently recognized as being among the top five state fairs in the nation.

    The New York State Fairgrounds is a 375-acre exhibit and entertainment complex that operates all year. Audiences are encouraged to learn more about The Great New York State Fair online, browse photos on Flickr, and follow the fun on Facebook, X, formerly known as Twitter, and Instagram.

    MIL OSI USA News

  • MIL-OSI USA: Delivering Real Results for Colorado: Gov. Polis Signs Landmark Housing Bill Into Law, Celebrates Actions for Coloradans on Education, Housing, Public Safety

    Source: US State of Colorado

    DENVER – Today, Governor Polis marked the end of the successful 2025 legislative session with House Speaker McCluskie, Senate President Coleman, House Majority Leader Duran, Senate Majority Leader Rodriguez and Lt. Governor Primavera and then signed SB25-002 – Regional Building Codes for Factory-Built Structures to break down barriers to modular housing and discussed the successful 2025 legislative session. 

    “We are delivering real results for hardworking Coloradans, and during this session, we took major actions that will create more housing Coloradans can afford, support students and educators, cut through government red tape, and improve safety across our state. It’s fitting that I’m signing the modular housing bill, a law that will create more housing options that Coloradans can afford, to kick off the next 30 days of bill signings. We know our work is far from over, and I will continue looking for new opportunities to make life better for all Coloradans,” said Governor Jared Polis. 

    During his 2025 State of the State address, the Governor outlined key priorities for the legislative session that would build on Colorado’s work to break down barriers to housing, improve public safety in Colorado communities, and invest in students and educators. These successful legislative priorities resulted in new laws that will help reduce costs and strengthen Colorado communities. 

    MORE HOUSING NOW: 

    IMPROVING PUBLIC SAFETY: 

    • SB25-310 – Proposition 130 Implementation: This law supports funding for local law enforcement agencies to help recruit peace officers by providing financial reimbursements and tuition assistance for initial and continuing education and training for peace officers, as well as pay incentives and bonuses. The bill also provides funding to ensure that the families of fallen officers get the support they need after losing their loved one in the line of duty.
    • HB25-1062 Penalty for Theft of Firearm: This legislation cracks down on gun theft by reclassifying firearm theft as a class 6 felony regardless of the value of the firearm stolen.
    • HB25-1171 – Possession of Weapon by Previous Offender Crimes: This legislation adds first-degree motor vehicle theft to the list of criminal offenses that would make an individual ineligible to possess a firearm.
    • SB25-281 – Increase Penalties Careless Driving: adjusts penalties for persons convicted of careless driving, making each individual seriously injured or killed in a careless driving event a separate violation and clarifies that careless driving resulting in serious bodily injury or death is an included crime for the purposes of the “Victim Rights Act”.
    • Budget to Make Colorado Safer: Governor Polis continues working to make Colorado safer for everyone and by signing this year’s budget, Colorado continues investing in preventing and addressing crime. This includes:
      • Youth Crime Prevention: Helping to prevent at-risk youth from entering the criminal justice system through increased funding for prevention services.
      • Community Corrections Capacity: The budget also provides $2.4 million to invest in community corrections placement, increasing capacity.
      • Supporting Crime Victims: Additionally, this budget implements Colorado’s Proposition KK, designating $30.0M in spending authority to crime victims’ services, $8 million for mental health services, and $1 million for school safety. $15 million ongoing for critical public safety communication infrastructure, supporting over 1,000 local, regional, state, tribal, and federal public safety entities.
      • Funding for CBI’s Colorado Gangs Database: The Colorado Gangs database (CoG) is an application that stores gang information such as gang names, gang members, gang contacts, and is used by law enforcement as an investigative tool. It allows law enforcement the ability to add and change any information about the gangs, tracking gangs, and gang members that they contact during patrol or other investigative efforts conducted by law enforcement. This information is also queryable in the Colorado Crime Information Center (CCIC), which provides law enforcement with the most accurate information possible.
    • HB25-1146 – Juvenile Detention Bed Cap: This legislation allows judicial districts to utilize more juvenile detention beds to ensure that individuals deemed high-risk do not re-enter communities before receiving the rehabilitative services they need. 

    FULLY FUND SCHOOLS AND SUPPORT COLORADO’S WORKFORCE: 

    • HB25-1320 – School Finance Act: This legislation implements Colorado’s student-focused school finance formula without bringing back the budget stabilization factor. It also increases per-pupil funding again to $11,864, an increase from FY24-25 of $412 per student, or an average of $9,000 per classroom.
    • SB25-315 – Postsecondary & Workforce Readiness Programs: This legislation realigns Postsecondary and Workforce Readiness administration and funding to ensure all students have the opportunity to graduate high school with postsecondary credit, an industry-recognized credential, or work-based learning experience.
    • HB25-1278 – Education Accountability System: This legislation modernizes Colorado’s K-12 accountability system for the first time since 2009 to better measure student outcomes, including the creation of a new sub-indicator to support postsecondary and workforce readiness before graduation.
    • HB25-1192 – Financial Literacy Graduation Requirement: This legislation ensures that every student takes a course incorporating all financial literacy standards before they graduate high school, as well as practice filling out financial aid forms so that they are equipped with the know-how to plan for and secure their financial futures.
    • HB25-1038 – Postsecondary Credit Transfer Website: This law will support students by providing more information about how their credits earned through prior learning, concurrent and dual enrollment, and GT Pathways courses will transfer to each Colorado public institution. By allowing students to evaluate and compare the value of their transfer credits across institutions and programs, students can save money and more successfully plan their educational journeys. 

    DRIVING COLORADO’S ECONOMY: 

    FREE STATE OF COLORADO: 

    BOLD CLIMATE GOALS AND IMPROVING AIR QUALITY: 

    • HB25-1267 – Support for Statewide Energy Strategies: This legislation builds on our EV success by empowering the Division of Oil and Public Safety to adopt retail EV charging rules to promote consistency and provide for a more seamless EV charging experience.
    • HB25-1269 Building Decarbonization Measures: This law will make it simpler for buildings to comply with statewide standards by complying with a local standard and will help achieve the administration’s 2030 carbon emission reduction targets. 

    ###

    MIL OSI USA News

  • MIL-OSI Security: Member of Drug Trafficking Organization That Distributed Heart Shaped Pills Resembling Candy, Laced with Lethal Drugs, Sentenced to 12 Years in Prison

    Source: Office of United States Attorneys

    Investigation resulted in what is believed to be one of the largest single-location seizures of fentanyl and methamphetamine in Massachusetts and the region – over eight million individual doses of fentanyl and methamphetamine laced pills and powder

    BOSTON – A Lynn, Mass. man was sentenced today in federal court in Boston for his role in a large-scale drug trafficking organization (DTO) on the North Shore of Massachusetts. In November 2023, millions of doses of fentanyl and methamphetamine laced pills and powder, with street value estimated to be over $7 million, was seized from a stash location and clandestine laboratory used by the organization.

    Sebastien Bejin, a/k/a “Bash,” 34, was sentenced by U.S. District Court Judge Patti B. Saris to 12 years in prison, to be followed by five years of supervised release. In January 2025, Bejin pleaded guilty to one count of conspiracy to distribute controlled substances and possess controlled substances with intent to distribute and one count of possession of controlled substances with intent to distribute. Bejin was charged in November 2023 along with alleged co-conspirators Emilio Garcia and Deiby Felix. The defendants were later indicted by a federal grand jury in December 2023.

    In July 2023, an investigation began into an overdose death in Salem, Mass. which led investigators to the drug trafficking organization led by Bejin, Garcia and Felix.

    On Nov. 1, 2023 searches were conducted at four locations frequented by Bejin and Garcia. The searches resulted in what is believed to be, one of the largest single-location seizures of fentanyl and methamphetamine in Massachusetts and the region. The seizure included nine kilograms (20 pounds) of pink heart shaped fentanyl-laced pills pressed to look like candy. Additional narcotics and five firearms were also seized. During the course of the investigation over 150 kilograms of suspected fentanyl and methamphetamine were seized, along with multiple additional kilograms of cocaine and dozens of kilograms of cutting agents, including xylazine, that are used to adulterate controlled substances.

    In total, more than an estimated eight million individual doses of fentanyl and methamphetamine laced pills and powder was seized. The street value is believed to be upwards of $8 million.

    Garcia and Bejin would travel to the stash location on a daily basis and then bring quantities of suspected controlled substances from the premises to supply lower-level dealers.

    A search of Felix’s residence resulted in the seizure of more than three kilograms (6.6 pounds) of pressed pills containing methamphetamine and fentanyl and a firearm. A subsequent search of the basement of Felix’s residence revealed a clandestine drug laboratory that had been built into a small room. Multiple industrial pill presses, mixing equipment and other manufacturing paraphernalia and equipment were also recovered. Within multiple large storage bins located within the laboratory, over 100 pounds of suspected fentanyl powder was also discovered.

    Garcia pleaded guilty on Feb. 7, 2025 and is scheduled to be sentenced on May 30, 2025. Felix pleaded guilty on Feb. 3, 2025 and is scheduled to be sentenced on May 29, 2025.

    United States Attorney Leah B. Foley; James Crowley, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Lynn, Lynnfield and Salem Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
     

    MIL Security OSI

  • MIL-OSI Security: Man Sentenced to 50 Years in Prison for Participating in Violent Kidnappings in the Chicago Suburbs

    Source: Office of United States Attorneys

    CHICAGO — A man has been sentenced to 50 years in federal prison for conspiring to abduct several victims at gunpoint in the Chicago suburbs.

    SEDGWICK WILLIAMS participated in kidnappings in Naperville, Ill., and Westchester, Ill., in the fall of 2019.  Williams and a co-conspirator also attempted a third kidnapping in South Holland, Ill., but they were unsuccessful and were arrested fleeing from the intended victim’s residence.

    A federal jury last year convicted Williams, 48, of Chicago, and co-defendant TAI HON LA, 35, of Beach Park, Ill., of participating in the kidnapping conspiracy and other related charges.  On Wednesday, U.S. District Judge Jorge L. Alonso sentenced Williams to 50 years in federal prison.  La is scheduled to be sentenced on June 3, 2025.

    Two other defendants pleaded guilty in the case.  IVAN AYERS, 37, of Chicago, pleaded guilty to participating in the kidnapping conspiracy and is set to be sentenced on June 10, 2025.  JONATHAN VARGAS, 38, of Chicago, pleaded guilty to kidnapping the first victim in Naperville and is set to be sentenced on June 5, 2025.

    Williams’s sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The case was investigated with assistance from the Naperville Police Department, Westchester Police Department, South Holland Police Department, Chicago Police Department, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the DuPage County Sheriff’s Office.

    According to evidence presented at trial, the first kidnapping occurred in Naperville on Oct. 17, 2019.  The conspirators posed as law enforcement officers to handcuff and abduct a man at gunpoint outside of his electronics store, which they then burglarized.  The conspirators forced the victim into a car and transported him to Chicago, where they assaulted him and extorted his family.

    The conspirators carried out the kidnapping in Westchester on Nov. 16, 2019.  Posing as federal agents, the conspirators handcuffed and abducted a man at gunpoint outside of his residence.  The conspirators forced the victim into his home, where they seized another victim and forced them both into the basement.  Two other victims later arrived at the residence and were also forced into the basement at gunpoint.  The conspirators stole cash and jewelry before fleeing.

    The conspirators attempted the third kidnapping in South Holland on Dec. 11, 2019, but the intended victim was able to call 911 and the South Holland Police arrived before the conspirators could gain access to the house.

    “Williams orchestrated a series of incredibly violent abductions and armed robberies throughout Chicago and the neighboring suburbs,” Assistant U.S. Attorneys Jared C. Jodrey and Kate McClelland argued in the government’s sentencing memorandum. “Williams and his co-conspirators ruthlessly threatened, restrained, beat, robbed, kidnapped, terrorized, and tortured people for their own personal gain.”

    MIL Security OSI

  • MIL-OSI Security: Five Charged with Trafficking Narcotics in the Waterbury Area

    Source: Office of United States Attorneys

    Marc H. Silverman, Acting United States Attorney for the District of  Connecticut, Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Waterbury Police Chief Fernando Spagnolo today announced that ZACHARY FOSTER, also known as “Lee,” 58, of Waterbury; KEVIN LUCAS, 61, of Waterbury; PHILLION HARVEY, also known as “Dawg,” 52, of New Haven; RONALD McDOWELL, 58, of Waterbury; and KENYA BROWN, 43, of Bristol; have been federally charged with conspiring to traffic narcotics in and around Waterbury.

    As alleged in court documents and statements made in court, on November 26, 2024, Foster was sentenced in New Haven federal court to approximately 35 months of imprisonment, time already served, and four years of supervised release, for trafficking narcotics.  In February 2025, an investigation by the DEA New Haven District Office (NHDO) Task Force determined that Foster had resumed his drug trafficking activity.  Between February and April 2025, investigators intercepted hundreds of calls between Foster and his associates coordinating the distribution of cocaine, crack, and fentanyl.

    During the investigation, a search of a stash location that Foster maintained at a residence on National Avenue in Waterbury revealed approximately one kilogram of cocaine, and a search of a location he maintained on Meriden Road in Waterbury revealed approximately 600 dose bags of fentanyl.  Harvey, McDowell, and Brown also were found in possession of distribution quantities of fentanyl.

    On April 16, 2025, a federal grand jury in Bridgeport returned an indictment charging each of the five defendants with conspiracy to distribute, and to possess with intent to distribute, cocaine and fentanyl.  If convicted of the charge, based on the type and quantity of drug attributed to each defendant, and based on Foster’s previous conviction for a serious drug felony offense, Foster faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Lucas, Harvey, McDowell, and Brown each faces a maximum term of imprisonment of 20 years.  Foster also faces additional penalties if he is found to have violated the conditions of his supervised release.

    Foster, Lucas, and McDowell were arrested on federal criminal complaints on April 3, 2025, and are currently detained.  Brown was arrested on April 25, 2025, and is released on $100,000 bond, and Harvey was released on April 29, 2025, and is released on a $50,000 bond.

    Acting U.S. Attorney Silverman stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This matter is being investigated by the DEA New Haven District Office (NHDO) Task Force and the Waterbury Police Department with the assistance of the U.S. Postal Inspection Service and the Federal Bureau of Investigation.  The DEA Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.  The case is being prosecuted by Assistant U.S. Attorneys Brendan J. Keefe and Natasha M. Freismuth.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.  Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).

    MIL Security OSI

  • MIL-OSI Security: Former Rock Hill Cop Convicted at Trial of Receiving, Sending Child Sexual Abuse Materials

    Source: Office of United States Attorneys

    COLUMBIA, S.C. — A federal jury in Columbia has convicted Daniel Paul Shealy, 36, of Rock Hill, on 18 counts of possession and distribution of child sexual abuse material.* The jury returned a guilty verdict following three days of testimony and an hour and a half of deliberation.

    According to evidence presented during trial, in 2023 investigators with the York County Sheriff’s Office (YCSO) received a tip from the National Center for Missing and Exploited Children (NCMEC) that three videos depicting the sexual abuse of children were flagged on the social messaging app Kik, under the username “orgasmd0nor.” Investigators with the YCSO and FBI traced the account and IP address to Shealy, a detective and former school resource officer with the Rock Hill Police Department.

    Further investigation revealed that Shealy was a member of more than 40 private groups on Kik designed for users to trade child sexual abuse materials, including groups with references to minors, teens, and incest in the titles. According to testimony from a Kik representative, users in such groups often exchange images and videos of rape, sexual assault, bestiality, and other abuse of children. Investigators testified during trial that after receiving the tip, they executed a search warrant on Shealy’s phone and his Kik account. Shealy’s phone was in his patrol car and accessible through his thumbprint and a passcode, which was his badge number. 

    Agents recovered 126 explicit videos of children from Shealy’s phone and Kik account, which Shealy had received or distributed to others on the internet. The files included recordings of prepubescent minors in bondage and constraints and child sex abuse materials represented the majority of explicit recovered from his Kik account.

    When Shealy testified at trial, he admitted that he operated the orgasmd0nor account and that he accessed child sex abuse material on the platform. He also admitted that he never reported the any of the videos to Kik or to law enforcement because he either did not know how to report or was concerned about his privacy related to his intimate life. Shealy taken into custody at the conclusion of the trial. 

    “The facts alone in this case were disturbing but became even more appalling because the defendant was a police officer, an individual given immense public trust,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “We remain committed to holding those who betray public trust accountable and protecting our most vulnerable citizens, our children. We’re grateful to the FBI, York County Sheriff’s Office for their work on this case and our trial attorneys that worked diligently to bring this man to justice.”

    “The FBI is unwavering in its commitment to safeguarding children from individuals who perpetrate physical and sexual abuse or engage in the exploitation of minors through the distribution of child sexual abuse material, as proved in this case,” said Reid Davis, Acting Special Agent in Charge of the FBI Columbia Field Office. “We hope this verdict represents a meaningful step toward justice for the victims and ensures that the defendant is held fully accountable under the law.”

    He faces a mandatory minimum of five years in federal prison and a maximum of 20 years. He also faces a fine of up to $250,000, restitution, lifetime supervision to follow the term of imprisonment, and sex offender registry requirements.  United States District Judge Joseph F. Anderson Jr. presided over the trial and will sentence Shealy after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

    The case was investigated by the FBI Columbia field office, the York County Sheriff’s Office, and the South Carolina ICAC (Internet Crimes Against Children) Task Force at the South Carolina Attorney General’s Office.  Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.

    ###

    MIL Security OSI

  • MIL-OSI Security: 21 Armed and Violent Drug Traffickers and Gang Members from Spokane Area Facing Federal Drug and Firearm Charges

    Source: Office of United States Attorneys

    Spokane, Washington – Today, the U.S. Attorney’s Office for the Eastern District of Washington announced that 21 individuals have been charged following the return of 15 separate indictments alleging dozens of charges against these defendants.  Certain of the individuals indicated are not yet in federal custody.

    The arrests follow a long-term joint federal investigation that began in October 2024, led by the by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This 7-month long investigation has targeted violent individuals and armed drug traffickers in Spokane as well as individuals operating in what has become nothing less than an open-air drug market on Division Street downtown..  These individuals have been problems in multiple states, impacting multiple communities during their lifetimes, in not only Washington State, but also Texas, Nevada, North Dakota, Montana, Alabama, Idaho, Oregon, and California.

    Upon release of the latest indictment, which was unsealed earlier today upon the arrest of several additional suspects, Acting United States Attorney Rich Barker stated, “I am grateful for the coordinated efforts of so many law enforcement agencies, who worked together to coordinate the takedown of this alleged drug trafficking operation.”  Acting U.S. Attorney Barker continued, “It is an honor work with our federal, state, and local law enforcement partners on such important prosecutions, which help remove illegal drugs and firearms from our community.  Our community and nation are safer, because of the work of our law enforcement and prosecution teams.”

    To date, agents seized just shy of 14-pounds of methamphetamine, over 1 kilogram of heroin, over 16,000 fentanyl pills, over 5.5 pounds of fentanyl powder, almost $60,000 in drug proceeds, as well as four vehicles and 36 firearms.  In connection with the prosecution, the United States has filed a civil forfeiture complaint in the Eastern District of Washington against a local Spokane apartment complex located near North Central High School, which allegedly was being used to distribute illegal drugs and a place for individuals to obtain firearms. Properties such as this one are not only a community safety issue as a free for all of illicit activity, they are also a drain on public resources that could be used elsewhere.  For example, in the last 2.5 years, records show there have been approximately 58 separate calls for service at the address.

    According to unsealed charging documents, the following individuals, many of whom have ties to various street gangs and who have a history of violence, have been charged in connection with the investigation. Additionally, the names of others indicted in connection with this investigation will be unsealed upon the arrest of those individuals.

    Andrew Vincent Auerbach, charged with Distribution of 50 Grams or More of Actual (Pure) Methamphetamine, Felon in Possession of a Firearm, Possession of a Firearm in Furtherance of Drug Trafficking.  Auerbach has a prior federal conviction for Felon in Possession of a Firearm.

    Daryl Edward Boone, 45, charged with Possess with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, Possess with Intent to Distribute 40 Grams or More of Fentanyl, Distribution of 5 Grams or More of Actual (Pure) Methamphetamine

    James M. Ferguson, 33, charged with Unlawful Possession of a Short-Barreled Shotgun

    Jonathan Jacob Inglis, 40, pleaded guilty to Possession with Intent to Distribute 500 Grams or More of Methamphetamine and Possession with Intent to Distribute 400 Grams or More of Fentanyl. On January 30, 2025, he was sentenced to 151 months in prison.

    Nathan Carlson Johnson, 44, charged with Distribution of 50 Grams or More of Actual (Pure) Methamphetamine.

    James Lelacheur, 56, charged with Distribution of 50 Grams or More of Actual (Pure) Methamphetamine.

    Christopher Wayne O’Neal, charged with Distribution of 5 Grams or More of Actual (Pure) Methamphetamine.  O’Neal is currently in Spokane County Jail stemming from a separate drug trafficking investigation.

    Gabriella Sherif Rizkalla, charged with multiple counts of Distribution of 50 Grams or More of Actual (Pure) Methamphetamine, and Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine

    Roland Dewayne Sanders, 36, charged with Distribution of Fentanyl, Distribution of 40 Grams or More of Fentanyl.  Sanders was on federal supervised release at the time of his offense and utilized his minor child to assist in the distribution of fentanyl.

    Bernie Ray Shaw Jr., 45, charged with Distribution of Fentanyl

    Courtney A. Wheeler, charged with Possession of a Firearm in Furtherance of Drug Trafficking and Conspiracy to Possess a Firearm in Furtherance of Drug Trafficking

    Andrew Lee Williams, charged with Possession of a Firearm in Furtherance of Drug Trafficking and Conspiracy to Possess a Firearm in Furtherance of Drug Trafficking

    Anthony Dale Williams, charged with Possession of a Firearm in Furtherance of Drug Trafficking and Conspiracy to Possess a Firearm in Furtherance of Drug Trafficking, multiple counts of Distribution of 50 Grams or More of Actual (Pure) Methamphetamine, Conspiracy to Distribute Methamphetamine, and Distribution of Cocaine.

    Certain of the individuals will be arraigned at the Spokane Federal Courthouse on May 9, 2025, at 10:00am.

    The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

    The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation along with the Drug Enforcement Administration, Homeland Security Investigations, Moses Lake Police Department, Border Patrol, and the Washington Department of Corrections. Additional assistance was provided by the United States Marshals Service and the Spokane County Sheriff’s Office.

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

    WILLIAMS et al – 2:25-CR-75-RLP

    SANDERS – 2:25-CR-15-MKD

    LELACHER – 2:24-CR-16-MKD

    FERGUSON – 2:24-CR-158-RLP

    JOHNSON – 2:24-CR-159-MKD

    AUERBACH – 2:25-CR-16-TOR

    INGLIS – 2:23-CR-56-TOR

    SHAW – 2:24-CR-163-MKD

    BOONE – 2:24-CR-164-RLP

    United States of America v. Real Property Known as 625 West Maxwell Avenue Spokane Washington et al, 2:25-cv-00148-RLP

    MIL Security OSI

  • MIL-OSI Security: Man Accused of Concealing Death of Disabled Veteran for Years to Reap Financial Benefits

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    ST. LOUIS – A convicted felon from Salem, Missouri was indicted on Wednesday and accused of concealing the death of his uncle, a U.S. Army veteran with quadraplegia, for at least five years so that he could steal at least $650,000 of his disability benefits.

    Brian K. Ditch, 44, is now facing four felony counts of wire fraud, four counts of aggravated identity theft, two counts of theft of government property and one count of being a felon in possession of a firearm.

    The indictment alleges that Ditch was solely responsible for his uncle’s care beginning in 2008, and kept his uncle locked in his garage and under his control so he could fraudulently obtain his government benefits. Instead of properly caring for his uncle, Ditch trapped him in the garage for over 24 hours at a time, forcing his uncle “to sit in his own urine and feces without the ability to eat or drink,” the indictment says. After his uncle’s death around 2019, Ditch concealed his death and the body so that he could continue to receive the money, the indictment says. It says Ditch told relatives that he had moved his uncle into a nursing home.

    His uncle received $9,559 per month in Disability Compensation benefits from the U.S. Department of Veterans Affairs (VA), the indictment says. The VA would not have continued to pay had they known Ditch’s uncle was dead, the indictment says. Ditch’s uncle also received a total of $235,210 in Social Security Disability Insurance benefits and Retirement Insurance benefits from the Social Security Administration since 2008.

    Ditch used the money to buy exotic reptiles, fund lavish vacations and enrich himself, the indictment says. Salem police officers found the uncle’s partially frozen body in a trash can in March, as well as three shotguns, the indictment says. As a convicted felon, Ditch is barred from possessing firearms.

    Ditch is expected to plead not guilty in U.S. District Court in St. Louis Friday.

    Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

    “The Department of Veterans Affairs Office of Inspector General is committed to holding accountable anyone who exploits veterans or steals their VA benefits,” said Special Agent in Charge Gregory Billingsley with the VA OIG’s Central Field Office. “VA’s programs and services are established to justly compensate deserving veterans and the VA OIG will bring to justice those who would defraud these programs.”

    The Salem Police Department, the Department of Veterans Affairs Office of Inspector General, the Social Security Administration Office of Inspector General and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.

    MIL Security OSI

  • MIL-OSI: Prospect Capital Announces Financial Results for Fiscal March 2025 Quarter

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, May 08, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended March 31, 2025.

    FINANCIAL RESULTS

    All amounts in $000’s except
    per share amounts (on weighted average
    basis for period numbers)
    Quarter Ended
    March 31, 2025
    Quarter Ended
    December 31, 2024
    Quarter Ended
    March 31, 2024
           
    Net Investment Income (“NII”) $83,489 $86,431 $94,375
    NII per Common Share $0.19 $0.20 $0.23
    Interest as % of Total Investment Income 93.3% 91.0% 91.0%
           
    Net Income (Loss) Applicable to Common Shareholders $(171,331) $(30,993) $113,891
    Net Income (Loss) per Common Share $(0.39) $(0.07) $0.27
           
    Distributions to Common Shareholders $59,966 $65,554 $74,685
    Distributions per Common Share $0.135 $0.15 $0.18
    Cumulative Paid and Declared Distributions to Common Shareholders(1) $4,527,079 $4,445,060 $4,263,149
    Cumulative Paid and Declared Distributions per Common Share(1) $21.57 $21.39 $21.00
    Multiple of Net Asset Value (“NAV”) per Common Share(1) 3.0x 2.7x 2.3x
           
    Total Assets $6,996,312 $7,234,855 $7,905,794
    Total Liabilities $2,118,522 $2,164,305 $2,603,811
    Preferred Stock $1,632,426 $1,630,514 $1,559,764
    Net Asset Value (“NAV”) to Common Shareholders $3,245,364 $3,440,036 $3,742,219
    NAV per Common Share $7.25 $7.84 $8.99
           
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,716,035 $1,879,738 $1,101,604
           
    Net of Cash Debt to Total Assets 28.7% 28.1% 31.2%
    Net of Cash Debt to Equity Ratio(2) 40.8% 39.8% 46.2%
    Net of Cash Asset Coverage of Debt Ratio(2) 345% 351% 316%
           
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 87.5% 91.9% 77.7%
    Unsecured and Non-Recourse Debt as % of Total Debt 100.0% 100.0% 100.0%
    (1) Declared dividends are through the August 2025 distribution. May through August 2025 distributions are estimated based on shares outstanding as of 5/7/2025.
    (2) Including our preferred stock as equity.
       

    CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

    Prospect is declaring distributions to common shareholders as follows:

    Monthly Cash Common Shareholder Distribution Record Date Payment Date Amount ($ per share)
    May 2025 5/28/2025 6/18/2025 $0.0450
    June 2025 6/26/2025 7/22/2025 $0.0450
    July 2025 7/29/2025 8/20/2025 $0.0450
    August 2025 8/27/2025 9/18/2025 $0.0450

    Prospect expects to declare September 2025 and October 2025 distributions to common shareholders in August 2025.

    Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.57 per share to original common shareholders, representing 3.0 times March 2025 common NAV per share, aggregating $4.5 billion in cumulative distributions to all common shareholders.

    Since Prospect’s initial public offering in July 2004 through March 31, 2025, Prospect has invested over $21 billion across over 450 investments, exiting over 325 of these investments.

    Since Prospect’s initial public offering in July 2004 through March 31,2025, Prospect’s exited investments resulted in an investment level realized gross internal rate of return (“IRR”) of approximately 13% (based on total capital invested and of approximately $11.8 billion and total proceeds from such exited investments of approximately $14.9 billion).

    Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans (with our first lien mix increasing 60 basis points from the prior quarter and 650 basis points from the prior year), including sometimes with selected equity investments, (2) continued amortization of our already significantly reduced subordinated structured notes portfolio (now down to 4.2% of total assets), (3) prudent exits of equity linked assets (including real estate properties and corporate investments, with an additional real estate property exit this past quarter), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility (which significantly matches with our majority floating rate assets).

    In our middle market lending strategy, we continued our focus on first lien senior secured loans during the quarter, with such investments totaling $149 million of our $196 million of originations during the quarter. Investments during the quarter included our new platform investment in Taos Footwear Holdings, LLC, a leading innovative footwear brand with a two decade history, and other follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.

    Our subordinated structured notes portfolio as of March 31, 2025 represented 4.2% of our investment portfolio, a reduction of 310 basis points from 7.3% as of March 31, 2024. Since the inception of this strategy in 2011 and through March 31, 2025, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 30.2% and an annualized GAAP yield of 4.4% (in each case as of March 31, 2025, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

    In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through March 31, 2025, we have exited 52 property investments (including one exit in the March 2025 quarter) that have earned an unlevered investment-level gross cash IRR of 24.0% and cash on cash multiple of 2.4 times. The remaining real estate property portfolio included 58 properties and paid us an income yield of 4.5% for the quarter ended March 31, 2025. Our aggregate investment in NPRC had a $460 million unrealized gain as of March 31, 2025.

    Our senior management team and employees own 28.8% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or $0.9 billion of our common equity as measured at NAV.

    PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

    All amounts in $000’s except
    per unit amounts
    As of
    March 31, 2025
    As of
    December 31, 2024
    As of
    March 31, 2024
           
    Total Investments (at fair value) $6,901,364 $7,132,928 $7,806,712
    Number of Portfolio Companies 114 114 122
    Number of Industries 33 33 36
           
    First Lien Debt 65.5% 64.9% 59.0%
    Second Lien Debt 10.5% 10.2% 14.6%
    Subordinated Structured Notes 4.2% 5.8% 7.3%
    Unsecured Debt 0.1% 0.1% 0.1%
    Equity Investments 19.7% 19.0% 19.0%
    Mix of Investments with Underlying Collateral Security 80.2% 80.9% 80.9%
           
    Annualized Current Yield – All Investments 9.2% 9.1% 9.7%
    Annualized Current Yield – Performing Interest Bearing Investments 11.5% 11.2% 12.1%
           
    Non-Accrual Loans as % of Total Assets (1) 0.6% 0.4% 0.4%
           
    Middle-Market Loan Portfolio Company Weighted Average EBITDA(2) $97,732 $101,418 $107,796
    Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio(2) 5.6x 5.6x 5.1x
    (1) Calculated at fair value.
    (2) For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.
       

    During the June 2025 (to date), March 2025, and December 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

    All amounts in $000’s Quarter Ended Quarter Ended Quarter Ended
    June 30, 2025
    (to date)
    March 31, 2025 December 31, 2024
           
    Total Originations $65,577 $196,144 $134,956
           
    Middle-Market Lending 75.5% 81.0% 67.7%
    Middle-Market Lending / Buyouts —% 4.9% 14.5%
    Real Estate 21.3% 14.1% 17.8%
    Subordinated Structured Notes —% —% —%
           
    Total Repayments and Sales $20,348 $191,656 $383,363
           
    Originations, Net of Repayments and Sales $45,229 $4,488 $(248,407)
           

    For additional disclosure see “Primary Origination Strategies” at the end of this release. Totals may not add to 100% given there are other smaller and non-core investment strategies.

    CAPITAL AND LIQUIDITY

    Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after successfully retiring our $156.2M convertible bond maturity in March 2025 (utilizing existing liquidity on hand), have just $2.4M remaining of debt maturing during calendar year 2025.

    On April 9, 2025, we commenced a tender offer to purchase for cash any and all of the $342.9 million aggregate principal amount of our outstanding 3.706% Notes due 2026 (the “2026 Notes”) at a purchase price of $990.00 for each $1,000 principal, plus accrued and unpaid interest. On April 22, 2025, $135.7 million was validly tendered and accepted, representing 39.6% of the outstanding notes. Approximately $207.2 million aggregate principal amount of the 2026 Notes remain outstanding.

    Our total unfunded eligible commitments to portfolio companies totals approximately $43 million, of which $17 million are considered at our sole discretion, representing 0.6% and 0.2% of our total assets as of March 31, 2025, respectively.

      As of As of
    All amounts in $000’s March 31, 2025 December 31, 2024
    Net of Cash Debt to Total Assets Ratio 28.7% 28.1%
    Net of Cash Debt to Equity Ratio(1) 40.8% 39.8%
    % of Interest-Bearing Assets at Floating Rates 77.5% 79.8%
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 87.5% 91.9%
         
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,716,035 $1,879,738
         
    Unencumbered Assets $4,440,135 $4,763,601
    % of Total Assets 63.5% 65.8%
    (1) Including our preferred stock as equity.
       

    The below table summarizes our March 2025 quarter term debt issuance and repurchase/repayment activity:

    All amounts in $000’s Principal Coupon Maturity
    Debt Issuances      
    Prospect Capital InterNotes® $2,366 7.00% – 7.50% March 2028 – April 2030
    Total Debt Issuances $2,366    
           
    Debt Repurchases/Repayments      
    Prospect Capital InterNotes® $3,302 2.50% – 5.50% February 2025 – March 2052
    2026 Notes $33,325 3.706% January 2026
    2025 Notes $156,168 6.375% March 2025
    Total Debt Repurchases/Repayments $192,795    
           
    Net Debt Repurchases/Repayments $(190,429)    

    We currently have three separate unsecured debt issuances aggregating approximately $0.8 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At March 31, 2025, $643 million of program notes were outstanding with laddered maturities through March 2052.

    At March 31, 2025 our weighted average cost of unsecured debt financing was 4.33%, a decrease of 0.16% from December 31, 2024, and an increase of 0.19% from March 31, 2024.

    We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

    DIVIDEND REINVESTMENT PLAN

    We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate. HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

    Shares held with a broker or financial institution

    Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

    Shares registered directly with our transfer agent

    If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

    EARNINGS CONFERENCE CALL

    Prospect will host an earnings call on Friday, May 9, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after May 9, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 7141044.

     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share data)
     
      March 31, 2025
      June 30, 2024
      (Unaudited)   (Audited)
    Assets              
    Investments at fair value:              
    Control investments (amortized cost of $3,339,028 and $3,280,415, respectively) $ 3,702,161     $ 3,872,575  
    Affiliate investments (amortized cost of $11,735 and $11,594, respectively)   22,693       18,069  
    Non-control/non-affiliate investments (amortized cost of $3,604,248 and $4,155,165, respectively)   3,176,510       3,827,599  
    Total investments at fair value (amortized cost of $6,955,011 and $7,447,174, respectively)   6,901,364       7,718,243  
    Cash and cash equivalents (restricted cash of $2,300 and $3,974, respectively)   54,498       85,872  
    Receivables for:              
    Interest, net   16,176       26,936  
    Other   1,910       1,091  
    Deferred financing costs on Revolving Credit Facility   20,018       22,975  
    Prepaid expenses   1,576       1,162  
    Due from broker   715       734  
    Due from Affiliate   55       79  
    Total Assets    6,996,312       7,857,092  
    Liabilities               
    Revolving Credit Facility   459,963       794,796  
    Public Notes (less unamortized discount and debt issuance costs of $8,841 and $12,433, respectively)   934,106       987,567  
    Prospect Capital InterNotes® (less unamortized debt issuance costs of $8,975 and $7,999, respectively)    633,923       496,029  
    Convertible Notes (less unamortized debt issuance costs of $0 and $649, respectively)         155,519  
    Due to Prospect Capital Management   39,781       58,624  
    Interest payable   21,709       21,294  
    Dividends payable   20,460       25,804  
    Accrued expenses   3,674       3,591  
    Due to Prospect Administration   2,809       5,433  
    Due to broker   1,748       10,272  
    Other liabilities   349       242  
    Total Liabilities    2,118,522       2,559,171  
    Commitments and Contingencies              
    Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of March 31, 2025 and June 30, 2024; 27,423,137 and 28,932,457 Series A1 shares issued and outstanding, 1,226,738 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,283,306 and 24,810,648 Series A3 shares issued and outstanding, 2,321,362 and 3,351,101 Series M3 shares issued and outstanding, 2,208,613 and 1,401,747 Series M4 shares issued and outstanding, 6,982,590 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 1,029,762 and 0 Series A5 issued and outstanding, and 193,289 and 0 Series M5 issued and outstanding as of March 31, 2025 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends   1,632,426       1,586,188  
    Net Assets Applicable to Common Shares $ 3,245,364     $ 3,711,733  
    Components of Net Assets Applicable to Common Shares and Net Assets, respectively              
    Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 447,344,378 and 424,846,963 issued and outstanding, respectively)   447       425  
    Paid-in capital in excess of par   4,304,253       4,208,607  
    Distributions in excess of earnings   (1,059,336 )     (497,299 )
    Net Assets Applicable to Common Shares $ 3,245,364     $ 3,711,733  
    Net Asset Value Per Common Share $ 7.25     $ 8.74  
                           
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
    (Unaudited)
                           
       Three Months Ended
    March 31,
       
       Nine Months Ended
    March 31,
       
        2025     2024     2025     2024
    Investment Income                              
    Interest income (excluding payment-in-kind (“PIK”) interest income):                              
    Control investments $ 60,584     $ 47,295     $ 170,352     $ 138,111  
    Non-control/non-affiliate investments   75,874       97,665       257,943       309,770  
    Structured credit securities   3,272       4,748       11,505       30,317  
    Total interest income (excluding PIK interest income)   139,730       149,708       439,800       478,198  
    PIK interest income:                              
    Control investments   8,915       21,210       42,509       72,161  
    Non-control/non-affiliate investments   10,611       13,014       30,360       30,651  
    Total PIK Interest Income   19,526       34,224       72,869       102,812  
    Total interest income   159,256       183,932       512,669       581,010  
    Dividend income:                              
    Control investments   4,387       510       8,774       737  
    Affiliate investments               141       1,307  
    Non-control/non-affiliate investments   3,366       1,469       8,209       4,334  
    Total dividend income   7,753       1,979       17,124       6,378  
    Other income:                              
    Control investments   416       14,192       15,799       55,553  
    Non-control/non-affiliate investments   3,291       2,112       6,898       6,461  
    Total other income   3,707       16,304       22,697       62,014  
    Total Investment Income   170,716       202,215       552,490       649,402  
    Operating Expenses                              
    Base management fee   35,578       39,218       111,253       117,594  
    Income incentive fee   4,207       17,390       33,519       61,332  
    Interest and credit facility expenses   36,151       39,841       113,890       120,478  
    Allocation of overhead from Prospect Administration   5,318       5,708       16,734       20,073  
    Audit, compliance and tax related fees   583       583       2,383       2,079  
    Directors’ fees   150       150       450       416  
    Other general and administrative expenses   5,240       4,950       14,464       10,516  
    Total Operating Expenses   87,227       107,840       292,693       332,488  
    Net Investment Income   83,489       94,375       259,797       316,914  
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments                              
    Net realized gains (losses)                              
    Control investments   4       1,186       6,374       1,039  
    Non-control/non-affiliate investments   (63,184 )     (70,949 )     (216,577 )     (278,168 )
    Net realized gains (losses)   (63,180 )     (69,763 )     (210,203 )     (277,129 )
    Net change in unrealized gains (losses)                              
    Control investments   (73,292 )     125,827       (217,121 )     8,592  
    Affiliate investments   2,481       (487 )     4,483       2,101  
    Non-control/non-affiliate investments   (90,058 )     (5,523 )     (112,078 )     183,012  
    Net change in unrealized gains (losses)   (160,869 )     119,817       (324,716 )     193,705  
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments   (224,049 )     50,054       (534,919 )     (83,424 )
    Net realized gains (losses) on extinguishment of debt   644       (68 )     1,128       (212 )
    Net Increase (Decrease) in Net Assets Resulting from Operations   (139,916 )     144,361       (273,994 )     233,278  
    Preferred Stock dividends   (26,698 )     (24,812 )     (80,083 )     (72,033 )
    Net gain (loss) on redemptions of Preferred Stock   (1,586 )     (925 )     (188 )     (46 )
    Gain (loss) on Accretion to Redemption Value of Preferred Stock   (3,131 )     (4,733 )     (13,128 )     (4,733 )
    Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders $ (171,331 )   $ 113,891     $ (367,393 )   $ 156,466  
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
    (in actual dollars)
     
      Three Months Ended
    March 31,
      Nine Months Ended
    March 31,
     
        2025     2024     2025     2024  
    Per Share Data                                
    Net asset value per common share at beginning of period $ 7.84     $ 8.92     $ 8.74     $ 9.24    
    Net investment income(1)   0.19       0.23       0.60       0.77    
    Net realized and change in unrealized gains (losses)(1)   (0.51 )     0.11       (1.25 )     (0.22 )  
    Net increase (decrease) from operations   (0.33 ) (7)   0.34       (0.66 ) (7)   0.56   (7)
    Distributions of net investment income to preferred stockholders   (0.06 ) (4)   (0.06 ) (3)   (0.18 ) (4)   (0.18 ) (3)
    Distributions of capital gains to preferred stockholders     (4)     (3)     (4)     (3)
    Total distributions to preferred stockholders   (0.06 )     (0.06 )     (0.18 )     (0.18 )  
    Net increase (decrease) from operations applicable to common stockholders   (0.39 )     0.27   (7)   (0.84 )     0.38    
    Distributions of net investment income to common stockholders   (0.14 ) (4)   (0.18 ) (3)   (0.47 ) (4)   (0.52 ) (3)
    Return of capital to common stockholders     (4)     (3)     (4)   (0.02 ) (3)(6)
    Total distributions to common stockholders   (0.14 )     (0.18 )     (0.47 )     (0.54 )  
    Common stock transactions(2)   (0.08 )     (0.03 )     (0.21 )     (0.09 )  
    Net asset value per common share at end of period $ 7.25   (7) $ 8.99   (7) $ 7.25   (7) $ 8.99    
    (1) Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.
    (2) Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.
    (3) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.
    (4) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.
    (5) Diluted net decrease from operations applicable to common stockholders was $0.39 for the three months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.20 for the three months ended March 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.84 for the nine months ended March 31, 2025. Diluted net increase from operations applicable to common stockholders was $0.33 for the nine months ended March 31, 2024.
    (6) The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for March 31, 2024. Certain reclassifications have been made in the presentation of prior period amounts.
    (7) Does not foot due to rounding.
       

    MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

    Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal. PSEC’s consumer finance middle-market lending / buyout portfolio company investments are excluded from Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA because consumer finance companies typically rely on financing to fund their lending activities.

    Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

    Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

    These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

    Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

    Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

    PRIMARY ORIGINATION STRATEGIES

    Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

    Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

    Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

    Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

    About Prospect Capital Corporation

    Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

    Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

    Caution Concerning Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

    For additional information, contact:

    Grier Eliasek, President and Chief Operating Officer
    grier@prospectcap.com
    Telephone (212) 448-0702

    The MIL Network

  • MIL-OSI: Definitive Healthcare Reports Financial Results for First Quarter Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    FRAMINGHAM, Mass., May 08, 2025 (GLOBE NEWSWIRE) — Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter ended March 31, 2025. 

    First Quarter 2025 Financial Highlights:

    • Revenue was $59.2 million, a decrease of 7% from $63.5 million in Q1 2024. 
    • Net Loss, inclusive of goodwill impairment charges of $176.5 million, was $(155.1) million, or (262)% of revenue, compared to $(12.7) million or (20)% of revenue in Q1 2024.  
    • Adjusted Net Income was $7.0 million, compared to $13.0 million in Q1 2024.   
    • Adjusted EBITDA was $14.7 million, or 25% of revenue, compared to $20.0 million, or 32% of revenue in Q1 2024.  
    • Cash Flow from Operations was $26.1 million in the quarter.
    • Unlevered Free Cash Flow was $22.9 million in the quarter.

    “We delivered first quarter results above the high end of our guidance for both revenue and earnings, reflecting solid new logo momentum across markets, and our continued focus on operational efficiency,” said Kevin Coop, CEO of Definitive Healthcare. “Even with rising macroeconomic uncertainty, we remain firmly on track to meet our full-year financial targets.”

    Recent Business and Operating Highlights: 

    Customer Wins

    In the first quarter, Definitive Healthcare continued to win new logos and expansion opportunities across all end-markets, by providing the data, insights and integrations that drive their critical business use cases. Customer wins for the quarter included:

    • A California-based medical device company, focused on continuous patient monitoring, recently selected our Carevoyance platform to equip their sales team with the insights and data they need to identify high-value targets, including ambulatory surgery centers and hospitals.
    • A regional health system in the Southern US recently selected our Populi platform to support new service line expansions, physician recruitment, and telemedicine growth opportunities, along with competitive intelligence and insights on technology adoption.
    • A leading office supply company recently returned to Definitive Healthcare after switching to a competitor in 2023. The decision was driven by our comprehensive data on hospitals, health systems, and post-acute care organizations, our robust affiliations and hierarchy insights that were critical for their enterprise sales team, and our ability to easily integrate with Salesforce.com.
    • As we expand our focus on digital marketing activation partnerships, we recently signed two leading healthcare advertising agencies. Both agencies are currently ramping, and we expect to see momentum continuing to build in the second half of 2025.

    Business Outlook 

    Based on information as of May 8, 2025, the Company is issuing the following financial guidance.  

    Second Quarter 2025:  

    • Revenue is expected to be in the range of $58.5 – $60.0 million. 
    • Adjusted Operating Income is expected to be in the range of $12.0 – $13.0 million. 
    • Adjusted EBITDA is expected to be in the range of $15.0 – $16.0 million, and 25 – 27% adjusted EBITDA margin. 
    • Adjusted Net Income is expected to be $6.5 – $7.5 million. 
    • Adjusted Net Income Per Diluted Share is expected to be $0.04 to $0.05 per share on approximately 147.9 million weighted-average shares outstanding. 

    Full Year 2025:  

    • Revenue is expected to be in the range of $234.0 – $240.0 million, raising the bottom end of our prior range by $4.0 million.
    • Adjusted Operating Income is expected to be in the range of $49.0 – $53.0 million. 
    • Adjusted EBITDA is expected to be in the range of $61.0 – $65.0 million, for a full-year adjusted EBITDA margin ranging from 26 – 28%. 
    • Adjusted Net Income is expected to be $30.0 – $34.0 million. 
    • Adjusted Net Income Per Diluted Share is expected to be $0.20 – $0.23 per share on approximately 148.8 million weighted-average shares outstanding. 

    We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty in predicting certain items excluded from these non-GAAP financial measures; in particular, the effects of equity-based compensation expense, taxes and amounts under the tax receivable agreement, deferred tax assets and deferred tax liabilities, and transaction, integration, and restructuring expenses. We expect the variability of these excluded items may have a significant and potentially unpredictable impact on our future GAAP financial results. 

    Conference Call Information 

    Definitive Healthcare will host a conference call today May 8, 2025, at 5:00 p.m. (Eastern Time) to discuss the Company’s full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through June 7, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at https://ir.definitivehc.com/.

    About Definitive Healthcare 

    At Definitive Healthcare, our passion is to transform data, analytics and expertise into healthcare commercial intelligence. We help clients uncover the right markets, opportunities and people, so they can shape tomorrow’s healthcare industry. Learn more at definitivehc.com.

    Forward-Looking Statements 

    This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership.

    Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including tariffs, sanctions, trade barriers, recessions, fluctuating inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; the possibility that our security measures are breached or unauthorized access to data is otherwise obtained; and the risks of being required to collect sales or other related taxes for subscriptions to our platform in jurisdictions where we have not historically done so.  

    Additional factors or events that could cause our actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for us to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, our actual financial condition, results of operations, future performance and business may vary in material respects from the performance projected in these forward-looking statements. 

    For additional discussion of factors that could impact our operational and financial results, refer to our Quarterly Report on Form 10-Q for the three months ended March 31, 2025 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov. 

    All information in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update this information, whether as a result of new information, future developments or otherwise, except as may be required by law. 

    Website 

    Definitive Healthcare intends to use its website as a distribution channel of material company information. Financial and other important information regarding the Company is routinely posted on and accessible through the Company’s website at https://www.definitivehc.com/. Accordingly, you should monitor the investor relations portion of our website at https://ir.definitivehc.com/ in addition to following our press releases, SEC filings, and public conference calls and webcasts. In addition, you may automatically receive email alerts and other information about the Company when you enroll your email address by visiting the “Email Alerts” section of our investor relations page at https://ir.definitivehc.com/. 

    Non-GAAP Financial Measures   

    We have presented supplemental non-GAAP financial measures as part of this earnings release. We believe that these supplemental non-GAAP financial measures are useful to investors because they allow for an evaluation of the Company with a focus on the performance of its core operations, including providing meaningful comparisons of financial results to historical periods and to the financial results of peer and competitor companies. Our use of these non-GAAP terms may vary from the use of similar terms by other companies in our industry and accordingly may not be comparable to similarly titled measures used by other companies and are not measures of performance calculated in accordance with GAAP. Our presentation of these non-GAAP financial measures are intended as supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures should not be considered as alternatives to loss from operations, net loss, earnings per share, or any other performance measures derived in accordance with GAAP or as measures of operating cash flows or liquidity. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included at the end of this press release. In evaluating our non-GAAP financial measures, you should be aware that in the future, we may incur expenses similar to those eliminated in these presentations.

    We refer to Unlevered Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Net Income and Adjusted Net Income Per Diluted Share as non-GAAP financial measures. These non-GAAP financial measures are not required by or prepared in accordance with generally accepted accounting principles in the U.S. (“GAAP”). These are supplemental financial measures of our performance and should not be considered substitutes for cash provided by (used in) operating activities, loss from operations, net (loss) income, net (loss) income margin, gross profit, gross margin, or any other measure derived in accordance with GAAP. 

    We define Unlevered Free Cash Flow as net cash provided by operating activities less purchases of property, equipment and other assets, plus cash interest expense, and cash payments related to transaction, integration, and restructuring related expenses, earnouts, and other non-core items. Unlevered Free Cash Flow does not represent residual cash flow available for discretionary expenditures since, among other things, we have mandatory debt service requirements. 

    We define EBITDA as earnings before debt-related costs, including interest expense (income), net, and loss on partial extinguishment of debt, income taxes and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items of a significant or unusual nature, including other income, net, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are key metrics used by management and our board of directors to assess the profitability of our operations. We believe that Adjusted EBITDA and Adjusted EBITDA Margin provide useful information to help investors to assess our operating performance because these metrics eliminate non-core and unusual items and non-cash expenses, which we do not consider indicative of ongoing operational performance. We believe that these metrics are helpful to investors in measuring the profitability of our operations on a consolidated level.  

    We define Adjusted Gross Profit as gross profit excluding acquisition-related amortization and equity-based compensation costs and Adjusted Gross Margin is defined as Adjusted Gross Profit as a percentage of revenue. Adjusted Gross Profit and Adjusted Gross Margin are key metrics used by management and our board of directors to assess our operations. We exclude acquisition-related depreciation and amortization expenses as they have no direct correlation to the cost of operating our business on an ongoing basis. A small portion of equity-based compensation is included in cost of revenue in accordance with GAAP but is excluded from our Adjusted Gross Profit calculations due to its non-cash nature.  

    We define Adjusted Operating Income as loss from operations plus acquisition related amortization, equity-based compensation, transaction, integration, and restructuring expenses, goodwill impairments and other non-core expenses.  

    We define Adjusted Net Income as Adjusted Operating Income less interest (expense), income net, recurring income tax (provision) benefit, foreign currency gain (loss), and tax impacts of adjustments. We define Adjusted Net Income Per Diluted Share as Adjusted Net Income divided by diluted outstanding shares. 

    In evaluating our non-GAAP financial measures, you should be aware that in the future we may incur expenses similar to those eliminated in these presentations. 

    Investor Contact: 
    Brian Denyeau 
    ICR for Definitive Healthcare 
    brian.denyeau@icrinc.com
    646-277-1251 

    Media Contact: 
    Bethany Swackhamer
    bswackhamer@definitivehc.com

    Definitive Healthcare Corp.
    Condensed Consolidated Balance Sheets
    (in thousands, except number of shares and par value; unaudited)
             
        March 31, 2025   December 31, 2024
    Assets        
    Current assets:        
    Cash and cash equivalents   $ 106,099     $ 105,378  
    Short-term investments     94,574       184,786  
    Accounts receivable, net     42,923       53,232  
    Prepaid expenses and other assets     16,173       13,040  
    Deferred contract costs     13,673       13,736  
    Total current assets     273,442       370,172  
    Property and equipment, net     9,483       3,791  
    Operating lease right-of-use assets, net     6,982       7,521  
    Other assets     2,991       2,300  
    Deferred contract costs     14,299       14,389  
    Intangible assets, net     284,708       297,933  
    Goodwill     216,752       393,283  
    Total assets   $ 808,657     $ 1,089,389  
    Liabilities and Equity        
    Current liabilities:        
    Accounts payable     8,218       10,763  
    Accrued expenses and other liabilities     26,963       40,896  
    Deferred revenue     109,724       93,344  
    Term loan     8,750       13,750  
    Operating lease liabilities     2,422       2,408  
    Total current liabilities     156,077       161,161  
    Long term liabilities:        
    Deferred revenue     2,790       32  
    Term loan     162,385       229,368  
    Operating lease liabilities     7,051       7,586  
    Tax receivable agreements liability     23,124       49,511  
    Deferred tax liabilities     13,912       25,088  
    Other liabilities     7,413       9,449  
    Total liabilities     372,752       482,195  
             
    Equity:        
    Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 109,646,157 and 113,953,554 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively     110       114  
    Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 38,997,184 and 38,995,217 shares issued and outstanding, respectively, at March 31, 2025, and 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024            
    Additional paid-in capital     1,071,732       1,085,445  
    Accumulated other comprehensive deficit     (1,264 )     (610 )
    Accumulated deficit     (747,802 )     (640,574 )
    Noncontrolling interests     113,129       162,819  
    Total equity     435,905       607,194  
    Total liabilities and equity   $ 808,657     $ 1,089,389  
             
     
    Definitive Healthcare Corp.
    Condensed Consolidated Statements of Operations
    (in thousands, except share amounts and per share data; unaudited)
               
        Three Months Ended March 31,  
        2025   2024  
    Revenue   $ 59,191     $ 63,480    
    Cost of revenue:          
    Cost of revenue exclusive of amortization (1)     10,141       9,736    
    Amortization     5,290       3,362    
    Gross profit     43,760       50,382    
    Operating expenses:          
    Sales and marketing (1)     20,653       21,760    
    Product development (1)     9,301       10,132    
    General and administrative (1)     12,269       16,883    
    Depreciation and amortization     8,527       9,322    
    Transaction, integration, and restructuring expenses     1,265       8,534    
    Goodwill impairment     176,531          
    Total operating expenses     228,546       66,631    
    Loss from operations     (184,786 )     (16,249 )  
    Other (expense) income, net          
    Interest (expense) income, net     (381 )     111    
    Other income, net     19,188       2,640    
    Total other income, net     18,807       2,751    
    Net loss before income taxes     (165,979 )     (13,498 )  
    Benefit from income taxes     10,886       780    
    Net loss     (155,093 )     (12,718 )  
    Less: Net loss attributable to noncontrolling interests     (47,865 )     (3,200 )  
    Net loss attributable to Definitive Healthcare Corp.   $ (107,228 )   $ (9,518 )  
    Net loss per share of Class A Common Stock:          
    Basic and diluted   $ (0.95 )   $ (0.08 )  
    Weighted average Class A Common Stock outstanding:          
    Basic and diluted     112,782,505       117,433,520    
               
               
    (1) Amounts include equity-based compensation expense as follows:          
        Three Months Ended March 31,  
        2025   2024  
    Cost of revenue   $ 160     $ 271    
    Sales and marketing     1,179       2,271    
    Product development     1,739       2,761    
    General and administrative     4,241       10,279    
    Total equity-based compensation expense   $ 7,319     $ 15,582    
               
       
    Definitive Healthcare Corp.  
    Condensed Consolidated Statements of Cash Flows  
    (in thousands; unaudited)  
               
        Three Months Ended March 31,  
        2025   2024  
    Cash flows provided by (used in) operating activities:          
    Net loss   $ (155,093 )   $ (12,718 )  
    Adjustments to reconcile net loss to net cash provided by operating activities:          
    Depreciation and amortization     591       554    
    Amortization of intangible assets     13,226       12,130    
    Amortization of deferred contract costs     3,947       3,692    
    Equity-based compensation     7,319       15,582    
    Amortization of debt issuance costs     126       176    
    (Benefit from) provision for doubtful accounts receivable     (142 )     211    
    Loss on partial extinguishment of debt     507          
    Non-cash restructuring charges     192          
    Goodwill impairment charges     176,531          
    Tax receivable agreement remeasurement     (20,664 )     (2,267 )  
    Changes in fair value of contingent consideration     (690 )     270    
    Deferred income taxes     (11,007 )     (847 )  
    Changes in operating assets and liabilities:          
    Accounts receivable     10,351       2,999    
    Prepaid expenses and other assets     (5,683 )     (1,399 )  
    Deferred contract costs     (3,794 )     (2,699 )  
    Contingent consideration           (602 )  
    Accounts payable, accrued expenses, and other liabilities     (8,745 )     (8,231 )  
    Deferred revenue     19,094       9,738    
    Net cash provided by operating activities     26,066       16,589    
    Cash flows (used in) provided by investing activities:          
    Purchases of property, equipment, and other assets     (7,706 )     (266 )  
    Purchases of short-term investments     (12,000 )     (83,826 )  
    Maturities of short-term investments     103,251       73,588    
    Cash paid for acquisitions, net of cash acquired           (13,530 )  
    Net cash provided by (used in) investing activities     83,545       (24,034 )  
    Cash flows used in financing activities:          
    Repayments of term loan     (246,250 )     (3,438 )  
    Proceeds from term loan     175,000          
    Payments of debt issuance costs     (1,660 )        
    Taxes paid related to net share settlement of equity awards     (1,874 )     (5,806 )  
    Repurchases of Class A Common Stock     (21,155 )        
    Payments of contingent consideration           (1,000 )  
    Payments under tax receivable agreement     (13,767 )     (6,950 )  
    Net cash used in financing activities     (109,706 )     (17,194 )  
    Net decrease in cash and cash equivalents     (95 )     (24,639 )  
    Effect of exchange rate changes on cash and cash equivalents     816       (343 )  
    Cash and cash equivalents, beginning of period     105,378       130,976    
    Cash and cash equivalents, end of period   $ 106,099     $ 105,994    
    Supplemental cash flow disclosures:          
    Cash paid during the period for:          
    Interest   $ 2,242     $ 3,642    
    Income taxes   $ 32     $    
    Acquisitions:          
    Net assets acquired, net of cash acquired   $     $ 13,675    
    Working capital adjustment receivable           (145 )  
    Net cash paid for acquisitions   $     $ 13,530    
    Supplemental disclosure of non-cash investing activities:          
    Capital expenditures included in accounts payable and accrued expenses and other liabilities   $ 5,393     $    
               
             
    Definitive Healthcare Corp.
    Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent
             
                     Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
    (in thousands; unaudited)
             
      Three Months Ended March 31,  
       2025    2024  
    Net cash provided by operating activities $ 26,066     $ 16,589    
    Purchases of property, equipment, and other assets   (7,706 )     (266 )  
    Interest paid in cash   2,242       3,642    
    Transaction, integration, and restructuring expenses paid in cash (a)   1,763       8,264    
    Earnout payment (b)         602    
    Other non-core items (c)   560       (528 )  
    Unlevered Free Cash Flow $ 22,925     $ 28,303    
             
    (a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions. Restructuring expenses paid in cash relate to our restructuring plans.
    (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations.  
    (c) Non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and unrelated to our core operations.  
             
    Reconciliation of GAAP Net Loss to Adjusted Net Income and
    GAAP Operating Loss to Adjusted Operating Income
    (in thousands, except share and per share amounts; unaudited)
             
      Three Months Ended March 31,  
       2025    2024  
    Net loss $ (155,093 )   $ (12,718 )  
    Add: Income tax benefit   (10,886 )     (780 )  
    Add: Interest expense (income), net   381       (111 )  
    Add: Loss on partial extinguishment from debt   507          
    Add: Other income, net   (19,695 )     (2,640 )  
    Loss from operations   (184,786 )     (16,249 )  
    Add: Amortization of intangible assets acquired through business combinations   11,089       11,211    
    Add: Equity-based compensation   7,319       15,582    
    Add: Transaction, integration, and restructuring expenses   1,265       8,534    
    Add: Goodwill impairment charge   176,531          
    Add: Other non-core items   560       (528 )  
    Adjusted Operating Income   11,978       18,550    
    Less: Interest (expense) income, net   (381 )     111    
    Less: Recurring income tax benefit   352       780    
    Less: Foreign currency (loss) gain   (969 )     373    
    Less: Tax impacts of adjustments to net loss   (4,008 )     (6,772 )  
    Adjusted Net Income $ 6,972     $ 13,042    
    Shares for Adjusted Net Income Per Diluted Share (a)   151,800,030       156,634,698    
    Adjusted Net Income Per Share $ 0.05     $ 0.08    
             
    (a) Diluted Adjusted Net Income Per Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 162,079,150 and 164,977,953 as of March 31, 2025 and 2024, respectively.
             
    Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
    (in thousands, except percentages; unaudited)
                     
        Three Months Ended March 31,
         2025    2024
    (in thousands)   Amount   % of Revenue   Amount   % of Revenue
    Reported gross profit and margin   $ 43,760   74 %   $ 50,382   79 %
    Amortization of intangible assets acquired through business combinations     3,153   5 %     2,443   4 %
    Equity compensation costs     160   0 %     271   0 %
    Adjusted gross profit and margin   $ 47,073   80 %   $ 53,096   84 %
                     
    Reconciliation of GAAP Net Loss and Margin to Adjusted EBITDA and Margin
    (in thousands, except percentages; unaudited)
                     
      Three Months Ended March 31,  
      2025   2024  
      Amount   % of Revenue   Amount   % of Revenue  
    Net loss and margin $ (155,093 )     (262 )%   $ (12,718 )   (20 )%  
    Interest expense (income), net   381       1 %     (111 )   (0 )%  
    Benefit from income taxes   (10,886 )     (18 )%     (780 )   (1 )%  
    Loss on partial extinguishment of debt   507       1 %         0 %  
    Depreciation & amortization   13,817       23 %     12,684     20 %  
    EBITDA and margin   (151,274 )     (256 )%     (925 )   (1 )%  
    Other income, net (a)   (19,695 )     (33 )%     (2,640 )   (4 )%  
    Equity-based compensation (b)   7,319       12 %     15,582     25 %  
    Transaction, integration, and restructuring expenses (c)   1,265       2 %     8,534     13 %  
    Goodwill impairment (d)   176,531       298 %         0 %  
    Other non-core items (e)   560       1 %     (528 )   (1 )%  
    Adjusted EBITDA and margin $ 14,706       25 %   $ 20,023     32 %  
                     
    (a) Primarily represents foreign exchange and Tax Receivable Agreement liability remeasurement gains and losses.
    (b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors.
    (c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships. Restructuring expenses relate to the 2024 Restructuring Plan as well as impairment and restructuring charges related to office closures, relocations, and consolidations.
                     
      Three Months Ended March 31,          
    (in thousands) 2025   2024          
    Merger and acquisition due diligence and transaction costs $ 1,178     $ 609            
    Integration costs   557       434            
    Fair value adjustment for contingent consideration   (690 )     270            
    Restructuring charges for severance and other separation costs   28       7,221            
    Office closure and relocation restructuring charges and impairments   192                  
    Total transaction, integration and restructuring expenses $ 1,265     $ 8,534            
                     
    (d) Goodwill impairment represents non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of a sustained decrease in our stock price, which represented a triggering event requiring our management to perform a quantitative goodwill impairment test as of the end of the first quarter of 2025. As a result of the impairment test conducted, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded the impairment charge.
     
    (e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-recurring items.
                                   
                     
      Three Months Ended March 31,          
    (in thousands) 2025   2024          
    Non-core legal and regulatory $ 53     $ (865 )          
    Consulting and severance costs for strategic transition initiatives   168       330            
    Other non-core expenses   339       7            
    Total other non-core items $ 560     $ (528 )          
                     

    The MIL Network

  • MIL-OSI: Oportun Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    GAAP Net income of $9.8 million increased $36 million year-over-year

    GAAP EPS of $0.21 increased $0.89 year-over-year

    Adjusted EPS of $0.40 increased $0.31 year-over-year

    Operating expenses of $93 million reduced 15% year-over-year

    Reiterating full year 2025 credit performance and profit expectations

    SAN CARLOS, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Oportun Financial Corporation (Nasdaq: OPRT) (“Oportun”, or the “Company”) today reported financial results for the first quarter ended March 31, 2025.

    “We started 2025 with a strong first quarter, building on the momentum from last year. I’m pleased to report our second consecutive quarter of GAAP profitability, with net income increasing by $36 million year-over-year,” said Raul Vazquez, CEO of Oportun. “We’ve also delivered profitability on an adjusted basis for the fifth consecutive quarter, with Adjusted Net Income up $15 million year-over-year. Our Return on Equity (ROE) improved to 11%, while our Adjusted ROE also improved by 17 percentage points, to 21%. We maintained strong cost discipline, reducing quarterly operating expenses by 15% year-over-year during the quarter. In addition, credit continued to perform well, with 30-plus day delinquencies and dollar net-charge-offs declining year-over-year for the fifth and sixth consecutive quarters, respectively. Given the current macroeconomic uncertainty, we are prudently moderating our expectations for full year loan originations growth from the 10% to 15% range, to approximately 10%. Factoring in both this adjustment and our Q1 outperformance, we’re reiterating our full year 2025 Adjusted EPS guidance of $1.10 to $1.30 per share, implying growth of 53% to 81%.

    First Quarter 2025 Results

    Metric GAAP   Adjusted1
      1Q25 1Q24   1Q25 1Q24
    Total revenue2 $236 $250      
    Net income (loss) $9.8 $(26)   $19 $3.6
    Diluted EPS $0.21 $(0.68)   $0.40 $0.09
    Adjusted EBITDA       $34 $1.9
    Dollars in millions, except per share amounts.          
    1See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.
    21Q24 total revenue includes $11 million from the credit cards receivable portfolio which was sold in November 2024.


    Business Highlights

    • Aggregate Originations were $469 million, a 39% increase compared to $338 million in the prior-year quarter
    • Portfolio Yield was 33.0%, an increase of 49 basis points compared to 32.5% in the prior-year quarter
    • Owned Principal Balance at end-of-period was $2.7 billion, a decrease of 3% compared to $2.8 billion in the prior-year quarter
    • Annualized Net Charge-Off Rate of 12.2%, an increase of 16 basis points compared to 12.0% in the prior-year quarter; dollar Net Charge-Offs declined 5% year-over-year, marking the sixth consecutive quarterly decrease
    • 30+ Day Delinquency Rate of 4.7%, a decrease of 56 basis points compared to 5.2% for the prior-year quarter; fifth consecutive quarterly decline

    Financial and Operating Results

    All figures are as of or for the quarter ended March 31, 2025, unless otherwise noted.

    Operational Drivers

    Originations – Aggregate Originations for the first quarter were $469 million, an increase of 39% compared to $338 million in the prior-year quarter, as the Company grew originations year-over-year for the second consecutive quarter. Management currently expects full year 2025 Aggregate Originations growth in the 10% range.

    Portfolio Yield – Portfolio Yield for the first quarter was 33.0%, an increase of 49 basis points as compared to 32.5% in the prior-year quarter, primarily attributable to increased pricing on loans.

    Financial Results

    Revenue – Total revenue for the first quarter was $236 million, a decrease of 6% as compared to $250 million in the prior-year quarter. The decline was primarily due to the absence of $11 million of revenue from the credit cards receivable portfolio which was sold in November 2024. Net revenue for the first quarter was $106 million, a 34% increase compared to net revenue of $79 million in the prior-year quarter, as reduced fair value marks and net charge-offs more than offset the total revenue decline and higher interest expense.

    Operating Expense and Adjusted Operating Expense – For the first quarter, total operating expense was $93 million, a decrease of 15% as compared to $110 million in the prior-year quarter. The decrease is attributable to a combined set of cost reduction initiatives enacted during the last year. The Company continues to expect full year 2025 operating expenses of approximately $390 million, averaging $97.5 million a quarter for a 5% reduction from full year 2024. Adjusted Operating Expense, which excludes stock-based compensation expense and certain non-recurring charges, decreased 13% year-over-year to $89 million.

    Net Income (Loss) and Adjusted Net Income (Loss) – Net income was $9.8 million as compared to a net loss of $26 million in the prior-year quarter. The increased profitability was attributable to expense reduction initiatives, and increased net revenue driven by reduced fair value mark-to-market impact and improved credit performance. Adjusted Net Income was $19 million as compared to $3.6 million in the prior-year quarter. The increase in Adjusted Net Income was also driven by reduced operating expenses, along with improved credit performance.

    Earnings (Loss) Per Share and Adjusted EPS – GAAP earnings per share, basic and diluted, were both $0.21 during the first quarter, compared to GAAP net loss per share, basic and diluted of $0.68 in the prior-year quarter. Adjusted Earnings Per Share was $0.40 as compared to $0.09 in the prior-year quarter.

    Adjusted EBITDA – Adjusted EBITDA was $34 million, up from $1.9 million in the prior-year quarter, driven by the cost reduction initiatives enacted during the last year along with improved credit performance.

    Credit and Operating Metrics

    Net Charge-Off Rate – The Annualized Net Charge-Off Rate for the quarter was 12.2%, compared to 12.0% for the prior-year quarter. Net Charge-offs in dollars for the quarter were down 5% to $81 million, compared to $85 million for the prior-year quarter.

    30+ Day Delinquency Rate – The Company’s 30+ Day Delinquency Rate was 4.7% at the end of the quarter, compared to 5.2% at the end of the prior-year quarter.

    Following the first quarter, the Company’s 30+ Day Delinquency Rate declined to 4.5% at the end of April.

    Operating Expense Ratio and Adjusted Operating Expense Ratio – Operating Expense Ratio for the quarter was 13.9% as compared to 15.5% in the prior-year quarter, a 157 basis points improvement. Adjusted Operating Expense Ratio was 13.3% as compared to 14.3% in the prior-year quarter, a 102 basis points improvement. The Adjusted Operating Expense Ratio excludes stock-based compensation expense and certain non-recurring charges. The improvement in Adjuste        d Operating Expense Ratio is primarily attributable to the Company’s focus on reducing operating expenses, partially offset by a decrease in Average Daily Principal Balance including the impact from the sale of the credit cards receivable portfolio in November 2024.

    Return On Equity (“ROE”) and Adjusted ROE – ROE for the quarter was 11%, as compared to (27)% in the prior-year quarter. The improvement was attributable to the increase in net income. Adjusted ROE for the quarter was 21%, as compared to 4% in the prior-year quarter.

             

    Secured Personal Loans

    As of March 31, 2025, the Company had a secured personal loan receivables balance of $178 million, up from $112 million at the end of the first quarter of 2024. Oportun currently offers secured personal loans in California, Texas, Florida, Arizona, New Jersey and Illinois. During the full year 2024, secured personal loans losses ran approximately 500 basis points lower compared to unsecured personal loans. Furthermore, secured personal loans originated during the first quarter are expected to generate approximately twice the revenue per loan compared to unsecured personal loans, primarily due to higher average loan sizes.

    Funding and Liquidity

    As of March 31, 2025, total cash was $231 million, consisting of cash and cash equivalents of $79 million and restricted cash of $152 million. Cost of Debt and Debt-to-Equity were 8.2% and 7.6x, respectively, for and at the end of the first quarter 2025 as compared to 7.5% and 7.3x, respectively, for and at the end of the prior-year quarter. As of March 31, 2025, the Company had $317 million of undrawn capacity on its existing $766 million personal loan warehouse lines. The Company’s personal loan warehouse lines are committed through September 2027 and August 2028.

    Financial Outlook for Second Quarter and Full Year 2025

    Oportun is providing the following guidance for 2Q 2025 and full year 2025 as follows:

      2Q 2025   Full Year 2025
    Total Revenue $237 – $242M   $945 – $970M
    Annualized Net Charge-Off Rate 11.90% +/- 15 bps   11.5% +/- 50 bps
    Adjusted EBITDA1 $29 – $34M   $135 – $145M
    Adjusted Net Income1   $53 – $63M
    Adjusted EPS1   $1.10 – $1.30
    GAAP Net Income   GAAP Profitable
             
    1 See the section entitled “About Non-GAAP Financial Measures” for an explanation of non-GAAP measures, and the table entitled “Reconciliation of Forward Looking Non-GAAP Financial Measures” for a reconciliation of non-GAAP to GAAP measures.


    Paul Appleton, Treasurer and Head of Capital Markets, serving as interim Chief Financial Officer

    As previously indicated in a March 17th 2025 Form 8-K filing, Paul Appleton, the Company’s Treasurer and Head of Capital Markets, began serving as interim Chief Financial Officer on March 28th, 2025. Mr. Appleton’s appointment followed Jonathan Coblentz’ retirement as the Company’s Chief Financial Officer and he is expected to serve in this interim role until the search for Mr. Coblentz’ successor is completed. With the assistance of a leading executive search firm, the Company has identified and engaged with several highly qualified candidates in connection with its search process for a permanent chief financial officer.

    Conference Call

    As previously announced, Oportun’s management will host a conference call to discuss first quarter 2025 results at 5:00 p.m. ET (2:00 p.m. PT) today. A live webcast of the call will be accessible from the Investor Relations page of Oportun’s website at https://investor.oportun.com. The dial-in number for the conference call is 1-888-396-8049 (toll-free) or 1-416-764-8646 (international). Participants should call in 10 minutes prior to the scheduled start time. Both the call and webcast are open to the general public. For those unable to listen to the live broadcast, a webcast replay of the call will be available at https://investor.oportun.com for one year. A file that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, will be available on the Investor Relations page of Oportun’s website at https://investor.oportun.com following the conference call.

    About Non-GAAP Financial Measures

    This press release presents information about the Company’s Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted Operating Expense, Adjusted Operating Expense Ratio, and Adjusted ROE, all of which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes these non-GAAP measures can be useful measures for period-to-period comparisons of its core business and provide useful information to investors and others in understanding and evaluating its operating results. Non-GAAP financial measures are provided in addition to, and not as a substitute for, and are not superior to, financial measures calculated in accordance with GAAP. In addition, the non-GAAP measures the Company uses, as presented, may not be comparable to similar measures used by other companies. Reconciliations of non-GAAP to GAAP measures can be found below.

    About Oportun

    Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $20.3 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members set aside an average of more than $1,800 annually. For more information, visit Oportun.com.

    Forward-Looking Statements

    This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance, results of operations and financial position; achievement of the Company’s strategic priorities and goals; expectations regarding the Company’s interim CFO; the Company’s expectations regarding macroeconomic conditions; the Company’s profitability and future growth opportunities including expected revenue growth in connection with increasing originations; the effect of and trends in fair value mark-to-market adjustments on the Company’s loan portfolio and asset-backed notes; the Company’s second quarter and full year 2025 outlook; the Company’s expectations regarding Adjusted EPS in full year 2025; the Company’s expectations related to future profitability on an adjusted basis, and the plans and objectives of management for our future operations, are forward-looking statements. These statements can be generally identified by terms such as “expect,” “plan,” “goal,” “target,” “anticipate,” “assume,” “predict,” “project,” “outlook,” “continue,” “due,” “may,” “believe,” “seek,” or “estimate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements. These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun’s filings with the Securities and Exchange Commission, including Oportun’s most recent annual report on Form 10-K, and include, but are not limited to, Oportun’s ability to retain existing members and attract new members; Oportun’s ability to accurately predict demand for, and develop its financial products and services; the effectiveness of Oportun’s A.I. model; macroeconomic conditions, including fluctuating inflation and market interest rates; increases in loan non-payments, delinquencies and charge-offs; Oportun’s ability to increase market share and enter into new markets; Oportun’s ability to realize the benefits from acquisitions and integrate acquired technologies; the risk of security breaches or incidents affecting the Company’s information technology systems or those of the Company’s third-party vendors or service providers; Oportun’s ability to successfully offer loans in additional states; Oportun’s ability to compete successfully with other companies that are currently in, or may in the future enter, its industry; and changes in Oportun’s ability to obtain additional financing on acceptable terms or at all.

    Contacts

    Investor Contact
    Dorian Hare
    (650) 590-4323
    ir@oportun.com

    Media Contact
    Michael Azzano
    Cosmo PR for Oportun
    (415) 596-1978
    michael@cosmo-pr.com

    Oportun and the Oportun logo are registered trademarks of Oportun, Inc.

     
    Oportun Financial Corporation
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except share and per share data, unaudited)
     
        Three Months Ended
    March 31,
          2025       2024  
    Revenue        
    Interest income   $ 220.2     $ 230.6  
    Non-interest income     15.7       19.9  
    Total revenue     235.9       250.5  
    Less:        
    Interest expense     57.4       54.5  
    Net decrease in fair value     (72.7 )     (116.9 )
    Net revenue     105.8       79.2  
             
    Operating expenses:        
    Technology and facilities     36.4       47.1  
    Sales and marketing     19.9       16.0  
    Personnel     21.0       24.5  
    Outsourcing and professional fees     8.0       10.2  
    General, administrative and other     7.4       11.8  
    Total operating expenses     92.7       109.6  
             
    Income (loss) before taxes     13.2       (30.5 )
    Income tax expense (benefit)     3.4       (4.0 )
    Net income (loss)   $ 9.8     $ (26.4 )
             
    Diluted Earnings (Loss) per Common Share   $ 0.21     $ (0.68 )
    Diluted Weighted Average Common Shares     47,037,799       38,900,876  
                     

    Note: Numbers may not foot or cross-foot due to rounding.

     
    Oportun Financial Corporation
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in millions, unaudited)
     
        March 31,   December 31,
          2025       2024  
    Assets        
    Cash and cash equivalents   $ 78.5     $ 60.0  
    Restricted cash     152.4       154.7  
    Loans receivable at fair value     2,770.5       2,778.5  
    Capitalized software and other intangibles     81.9       86.6  
    Right of use assets – operating     9.3       9.8  
    Other assets     133.6       137.6  
    Total assets   $ 3,226.3     $ 3,227.1  
             
    Liabilities and stockholders’ equity        
    Liabilities        
    Secured financing   $ 445.5     $ 535.5  
    Asset-backed notes at fair value     863.9       1,080.7  
    Asset-backed borrowings at amortized cost     1,281.3       984.3  
    Acquisition and corporate financing     199.7       203.8  
    Lease liabilities     16.1       18.2  
    Other liabilities     53.8       50.9  
    Total liabilities     2,860.2       2,873.3  
    Stockholders’ equity        
    Common stock            
    Common stock, additional paid-in capital     615.2       612.6  
    Accumulated deficit     (242.8 )     (252.5 )
    Treasury stock     (6.3 )     (6.3 )
    Total stockholders’ equity     366.1       353.8  
    Total liabilities and stockholders’ equity   $ 3,226.3     $ 3,227.1  
                     

    Note: Numbers may not foot or cross-foot due to rounding.

     
    Oportun Financial Corporation
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in millions, unaudited)
     
      Three Months Ended
    March 31,
        2025       2024  
    Cash flows from operating activities      
    Net income (loss) $ 9.8     $ (26.4 )
    Adjustments for non-cash items   83.2       128.2  
    Proceeds from sale of loans in excess of originations of loans sold and held for sale   3.0       1.1  
    Changes in balances of operating assets and liabilities   4.9       (17.0 )
    Net cash provided by operating activities   101.0       85.9  
           
    Cash flows from investing activities      
    Net loan principal repayments (loan originations)   (49.7 )     38.3  
    Proceeds from loan sales originated as held for investment         1.4  
    Capitalization of system development costs   (5.6 )     (3.1 )
    Other, net   (0.2 )     (0.1 )
    Net cash provided by (used in) investing activities   (55.5 )     36.5  
           
    Cash flows from financing activities      
    Borrowings   745.4       260.3  
    Repayments   (774.0 )     (391.8 )
    Net stock-based activities   (0.5 )     (0.2 )
    Net cash used in financing activities   (29.1 )     (131.8 )
           
    Net increase (decrease) in cash and cash equivalents and restricted cash   16.3       (9.5 )
    Cash and cash equivalents and restricted cash beginning of period   214.6       206.0  
    Cash and cash equivalents and restricted cash end of period $ 231.0     $ 196.6  
                   

    Note: Numbers may not foot or cross-foot due to rounding.

     
    Oportun Financial Corporation
    CONSOLIDATED KEY PERFORMANCE METRICS
    (unaudited)
     
        Three Months Ended
    March 31,
    Key Financial and Operating Metrics   2025   2024
    Aggregate Originations (Millions)   $ 469.4     $ 338.2  
    Portfolio Yield (%)     33.0 %     32.5 %
    30+ Day Delinquency Rate (%)     4.7 %     5.2 %
    Annualized Net Charge-Off Rate (%)     12.2 %     12.0 %
             
    Other Metrics        
    Managed Principal Balance at End of Period (Millions)   $ 2,955.0     $ 3,027.5  
    Owned Principal Balance at End of Period (Millions)   $ 2,659.4     $ 2,752.4  
    Average Daily Principal Balance (Millions)   $ 2,705.2     $ 2,851.7  
                     

    Note: Numbers may not foot or cross-foot due to rounding.

    Oportun Financial Corporation
    ABOUT NON-GAAP FINANCIAL MEASURES
    (unaudited)

    This press release dated May 8, 2025 contains non-GAAP financial measures. The following tables reconcile the non-GAAP financial measures in this press release to the most directly comparable financial measures prepared in accordance with GAAP.

    The Company believes that the provision of these non-GAAP financial measures can provide useful measures for period-to-period comparisons of Oportun’s core business and useful information to investors and others in understanding and evaluating its operating results. However, non-GAAP financial measures are not calculated in accordance with GAAP and should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names, and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

    Adjusted EBITDA

    The Company defines Adjusted EBITDA as net income, adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted EBITDA is an important measure because it allows management, investors and its board of directors to evaluate and compare operating results, including return on capital and operating efficiencies, from period to period by making the adjustments described below. In addition, it provides a useful measure for period-to-period comparisons of Oportun’s business, as it removes the effect of income taxes, certain non-cash items, variable charges and timing differences.

    • The Company believes it is useful to exclude the impact of income tax expense, as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations.
    • The Company believes it is useful to exclude depreciation and amortization and stock-based compensation expense because they are non-cash charges.
    • The Company believes it is useful to exclude the impact of interest expense associated with the Company’s corporate financing facilities, including the senior secured term loan and the residual financing facility, as it views this expense as related to its capital structure rather than its funding.
    • The Company excludes the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
    • The Company also excludes fair value mark-to-market adjustments on its loans receivable portfolio and asset-backed notes carried at fair value because these adjustments do not impact cash.

    Adjusted Net Income

    The Company defines Adjusted Net Income as net income adjusted to eliminate the effect of certain items as described below. The Company believes that Adjusted Net Income is an important measure of operating performance because it allows management, investors, and the Company’s board of directors to evaluate and compare its operating results, including return on capital and operating efficiencies, from period to period, excluding the after-tax impact of non-cash, stock-based compensation expense and certain non-recurring charges.

    • The Company believes it is useful to exclude the impact of income tax expense (benefit), as reported, because historically it has included irregular income tax items that do not reflect ongoing business operations. The Company also includes the impact of normalized income tax expense by applying a normalized statutory tax rate.
    • The Company believes it is useful to exclude the impact of certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges because it does not believe that these items reflect its ongoing business operations. Other non-recurring charges include litigation reserve, impairment charges, debt amendment and warrant amortization costs related to our corporate financing facilities.
    • The Company believes it is useful to exclude stock-based compensation expense because it is a non-cash charge.
    • The Company also excludes the fair value mark-to-market adjustment on its asset-backed notes carried at fair value to align with the 2023 accounting policy decision to account for new debt financings at amortized cost.

    Adjusted Operating Expense and Adjusted Operating Expense Ratio

    The Company defines Adjusted Operating Expense as total operating expenses adjusted to exclude stock-based compensation expense and certain non-recurring charges, such as expenses associated with our workforce optimization, and other non-recurring charges. Other non-recurring charges include litigation reserve, impairment charges, and debt amendment costs related to our Corporate Financing facility. The Company defines Adjusted Operating Expense Ratio as Adjusted Operating Expense divided by Average Daily Principal Balance. The Company believes Adjusted Operating Expense is an important measure because it allows management, investors and Oportun’s board of directors to evaluate and compare its operating costs from period to period, excluding the impact of non-cash, stock-based compensation expense and certain non-recurring charges. The Company believes Adjusted Operating Expense Ratio is an important measure because it allows management, investors and Oportun’s board of directors to evaluate how efficiently the Company is managing costs relative to revenue and Average Daily Principal Balance.

    Adjusted Return on Equity
    The Company defines Adjusted Return on Equity (“ROE”) as annualized Adjusted Net Income divided by average stockholders’ equity. Average stockholders’ equity is an average of the beginning and ending stockholders’ equity balance for each period. The Company believes Adjusted ROE is an important measure because it allows management, investors and its board of directors to evaluate the profitability of the business in relation to its stockholders’ equity and how efficiently it generates income from stockholders’ equity.

    Adjusted EPS
    The Company defines Adjusted EPS as Adjusted Net Income divided by weighted average diluted shares outstanding.

     
    Oportun Financial Corporation
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (in millions, unaudited)
     
        Three Months Ended
    March 31,
    Adjusted EBITDA     2025       2024  
    Net income (Loss)   $ 9.8     $ (26.4 )
    Adjustments:        
    Income tax expense (benefit)     3.4       (4.0 )
    Interest on corporate financing     9.7       13.9  
    Depreciation and amortization     11.1       13.2  
    Stock-based compensation expense     2.8       4.0  
    Workforce optimization expenses     (0.1 )     0.8  
    Other non-recurring charges     1.8       3.5  
    Fair value mark-to-market adjustment     (4.9 )     (3.0 )
    Adjusted EBITDA   $ 33.5     $ 1.9  
        Three Months Ended
    March 31,
    Adjusted Net Income   2025   2024
    Net income (Loss)   $ 9.8     $ (26.4 )
    Adjustments:        
    Income tax expense (benefit)     3.4       (4.0 )
    Stock-based compensation expense     2.8       4.0  
    Workforce optimization expenses     (0.1 )     0.8  
    Other non-recurring charges     1.8       3.5  
    Mark-to-market adjustment on ABS notes     7.9       27.1  
    Adjusted income before taxes     25.5       5.0  
    Normalized income tax expense     6.9       1.3  
    Adjusted Net Income (Loss)   $ 18.6     $ 3.6  
             
    Stockholders’ equity   $ 366.1     $ 382.0  
    GAAP ROE     11.0 %   (27.0 )%
    Adjusted ROE (%) (1)     21.0 %     3.7 %
                     

    Note: Numbers may not foot or cross-foot due to rounding.
    (1) Calculated as Adjusted Net Income (Loss) divided by average stockholders’ equity.

     
    Oportun Financial Corporation
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (in millions, unaudited)
     
        Three Months Ended
    March 31,
    Adjusted Operating Expense Ratio   2025   2024
    OpEx Ratio     13.9 %     15.5 %
             
    Total Operating Expense   $ 92.7     $ 109.6  
    Adjustments:        
    Stock-based compensation expense     (2.8 )     (4.0 )
    Workforce optimization expenses     0.1       (0.8 )
    Other non-recurring charges     (1.0 )     (3.1 )
    Total Adjusted Operating Expense   $ 88.9     $ 101.7  
             
    Average Daily Principal Balance   $ 2,705.2     $ 2,851.7  
             
    Adjusted OpEx Ratio     13.3 %     14.3 %
             

    Note: Numbers may not foot or cross-foot due to rounding.

     
    Oportun Financial Corporation
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (in millions, except share and per share data, unaudited)
     
        Three Months Ended
    March 31,
    GAAP Earnings (loss) per Share     2025       2024  
    Net income (loss)   $ 9.8     $ (26.4 )
    Net income (loss) attributable to common stockholders   $ 9.8     $ (26.4 )
             
    Basic weighted-average common shares outstanding     45,496,705       38,900,876  
    Weighted average effect of dilutive securities:        
    Stock options            
    Restricted stock units     1,541,094        
    Diluted weighted-average common shares outstanding     47,037,799       38,900,876  
             
    Earnings (loss) per share:        
    Basic   $ 0.21     $ (0.68 )
    Diluted   $ 0.21     $ (0.68 )
        Three Months Ended
    March 31,
    Adjusted Earnings (loss) Per Share     2025       2024  
    Diluted earnings (loss) per share   $ 0.21     $ (0.68 )
             
    Adjusted Net Income   $ 18.6     $ 3.6  
             
    Basic weighted-average common shares outstanding     45,496,705       38,900,876  
    Weighted average effect of dilutive securities:        
    Stock options            
    Restricted stock units     1,541,094       435,763  
    Diluted adjusted weighted-average common shares outstanding     47,037,799       39,336,639  
             
    Adjusted Earnings (loss) Per Share   $ 0.40     $ 0.09  

    Note: Numbers may not foot or cross-foot due to rounding.

     
    Oportun Financial Corporation
    RECONCILIATION OF FORWARD LOOKING NON-GAAP FINANCIAL MEASURES
    (in millions, unaudited)
     
        2Q 2025   FY 2025
        Low   High   Low   High
    Adjusted EBITDA                
    Net income   $ 3.3   * $ 7.2   * $ 23.2     $ 33.4  
    Adjustments:                
    Income tax expense (benefit)     0.9       1.9       6.3       9.0  
    Interest on corporate financing     9.0       9.0       36.5       36.5  
    Depreciation and amortization     10.7       10.7       41.1       41.1  
    Stock-based compensation expense     3.7       3.7       13.7       13.7  
    Other non-recurring charges     1.4       1.4       6.0       6.0  
    Fair value mark-to-market adjustment   *   *     8.3       5.3  
    Adjusted EBITDA   $ 29.0     $ 34.0     $ 135.0     $ 145.0  
                     

    *Due to the uncertainty in macroeconomic conditions and quarterly volatility in the fair value mark to market adjustment, we are unable to precisely forecast the fair value mark-to-market adjustments on our loan portfolio and asset-backed notes on a quarterly basis. As a result, while we fully expect there to be a fair value mark-to-market adjustment which could have an impact on GAAP net income (loss), the net income (loss) number shown above assumes no change in the fair value mark-to-market adjustment.

        FY 2025
    Adjusted Net Income and Adjusted EPS   Low   High
    Net income   $ 23.2     $ 33.4  
    Adjustments:        
    Income tax expense (benefit)     6.3       9.0  
    Stock-based compensation expense     13.7       13.7  
    Other non-recurring charges     6.0       6.0  
    Mark-to-market adjustment on ABS notes     23.5       23.5  
    Adjusted income before taxes   $ 72.6     $ 85.6  
    Normalized income tax expense     19.6       23.1  
    Adjusted Net Income   $ 53.0     $ 62.5  
             
    Diluted weighted-average common shares outstanding     48.0       48.0  
             
    Diluted earnings per share   $ 0.48     $ 0.70  
    Adjusted Earnings Per Share   $ 1.10     $ 1.30  
                     

    Note: Numbers may not foot or cross-foot due to rounding.

    The MIL Network

  • MIL-OSI: Triumph Completes Acquisition of Greenscreens.ai

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, May 08, 2025 (GLOBE NEWSWIRE) — Triumph Financial, Inc. (Nasdaq: TFIN), a financial and technology company focused on payments, factoring, intelligence and banking solutions for the transportation industry, today announced it has completed its previously announced acquisition of Greenscreens.ai.

    Greenscreens.ai is a disrupter in the freight technology market. Its dynamic pricing infrastructure transforms how freight industry participants make real-time pricing decisions by harnessing high-quality data, machine learning and predictive analytics.

    “We acquired Greenscreens.ai to change how freight industry participants approach pricing strategy,” said Aaron P. Graft, founder, vice chairman, and chief executive officer of Triumph. “This acquisition allows us to bring to market a powerful alternative to the bundled solutions that have limited customer choice for too long. Backed by the scale, quality and connectivity of data inside the Triumph Network, we’re well positioned to launch best-in-class Intelligence offerings that empower brokers and shippers to transact confidently.”

    Triumph’s Intelligence offerings will serve as a foundation for transparent rate discovery, verified performance measurement and optimized RFP bid strategies. By leveraging the veracity of Triumph’s network data, its solutions will deliver customized insights based exclusively on real transaction data—giving brokers and shippers a more precise alternative to legacy tools. Triumph’s Intelligence offerings will simplify decision-making by providing the most actionable rate intelligence in the market.

    In conjunction with the close, Dawn Salvucci-Favier, chief executive officer and chief product officer of Greenscreens.ai, has been named President of Triumph’s Intelligence segment. She will lead the integration of Greenscreens.ai and ISO into a unified offering, including the upcoming launch of Triumph’s new rating and performance platform.

    “Being part of Triumph gives us the resources and reach to expand the impact of what we’ve built,” said Salvucci-Favier. “Our mission has always been to provide transparent, customizable and actionable intelligence that helps customers make confident decisions. Now, with Triumph’s backing, we can deliver that value at scale, meet the industry’s demand for credible alternatives, and accelerate innovation across the freight ecosystem.”

    Under the terms of the agreement, Triumph acquired Greenscreens.ai for $140 million in cash and 256,984 shares of TFIN common stock. J.P. Morgan served as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal counsel to Triumph in connection with the transaction. DLA Piper acted as legal counsel to Greenscreens.ai in connection with the transaction.

    About Triumph
    Triumph Financial, Inc. (Nasdaq: TFIN) is a financial holding company focused on payments, factoring, intelligence and banking. Headquartered in Dallas, Texas, its portfolio of brands includes TriumphPay, Triumph, TBK Bank and LoadPay.  

    About Greenscreens.ai
    Greenscreens.ai is transforming how the freight industry operates by delivering real-time, dynamic decision support powered by machine learning and quality data. Its platform empowers brokers and shippers to work more efficiently, make informed decisions, and build resilient strategies in a volatile market. 

    Forward-Looking Statements
    This press release contains forward-looking statements within the meaning of the federal securities laws. Investors are cautioned that such statements are predictions and that actual events or results may differ materially. Triumph Financial’s expected financial results or other plans are subject to a number of risks and uncertainties. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: Triumph Financial may be unable to successfully implement integration strategies or to achieve expected synergies and operating efficiencies with Greenscreens.ai within Triumph Financial management’s expected timeframes or at all; and the ability of Triumph Financial or Greenscreens.ai to retain and hire key personnel. For a discussion of risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” and the forward-looking statement disclosure contained in the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 11, 2025. Forward-looking statements speak only as of the date made and Triumph Financial undertakes no duty to update the information.

    Source: Triumph Financial, Inc.

    The MIL Network

  • MIL-OSI: Synaptics Reports Third Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Quarterly revenues increased 12% year-over-year, driven by a 43% growth in Core IoT product sales

    Q3’25 Financial Results

    • Revenue of $266.6 million
    • GAAP gross margin of 43.4%
    • Non-GAAP gross margin of 53.5%
    • GAAP loss per share of $0.56
    • Non-GAAP diluted earnings per share of $0.90
    • Repurchased approximately 546,000 shares for $37.9 million

    SAN JOSE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its third quarter of fiscal 2025 ended March 29, 2025.

    Net revenue for the third quarter of fiscal 2025 was $266.6 million. GAAP net loss for the third quarter of fiscal 2025 was $21.8 million, or a loss of $0.56 per basic share. Non-GAAP net income for the third quarter of fiscal 2025 was $35.3 million, or $0.90 per diluted share.

    “We delivered another solid quarter, with revenues increasing by over 12 percent year-over-year, marking our fourth consecutive quarter of year-over-year growth. This momentum was driven by our Core IoT products, which grew 43% year-over-year in the third quarter and accounted for 25% of total sales. Our strategic initiatives in the IoT market continue to gain traction.  During the quarter, we launched several new products including Wi-Fi 7 solutions, broad markets devices, and next-generation Touch controllers that strengthen our portfolio and position the company for long-term growth,” said Ken Rizvi, Synaptics’ Interim CEO and Chief Financial Officer.

    Business Outlook
    Ken Rizvi added, “We remain focused on executing to our technology roadmap and growth initiatives, while staying agile and disciplined as we navigate the current macroeconomic and trade environment. Our balance sheet is strong and we generated over $74 million in cash flow from operations in the third quarter demonstrating the underlying strength in our business. Looking ahead, our fourth quarter guidance reflects improving demand trends, with expectations of both sequential and year-over-year revenue growth. We remain focused on delivering long-term value for our stockholders, customers, and employees.”

    The fourth quarter fiscal 2025 outlook information provided below is based on the company’s current estimates and is not a guarantee of future performance. These statements are forward-looking and actual results may differ materially. Refer to the “Cautionary Statement Regarding Forward-Looking Statements” section below for information on the factors that could cause the Company’s actual results to differ materially from these forward-looking statements.

    For the fourth quarter of fiscal 2025, the company expects:

           
      GAAP Non-GAAP Adjustment Non-GAAP
           
    Revenue $280M ± $15M N/A N/A
           
    Gross Margin* 42.5 percent ± 2.0 percent $30M ± $1M 53.5 percent ± 1.0 percent
           
    Operating Expense** $150M ± $4M $47M ± $2M $103M ± $2M
           
    Earnings (loss) per share*** ($0.68) ± $0.30 $1.68 ± $0.10 $1.00 ± $0.20
           

    * Projected Non-GAAP gross margin excludes $28.0 to $30.0 million acquisition and integration-related costs and $1.0 million share-based compensation.

    ** Projected Non-GAAP operating expense excludes $39.0 to $40.0 million in share-based compensation costs, and $6.0 to $9.0 million acquisition and integration related costs.

    *** Projected Non-GAAP earnings (loss) per share excludes $1.03 to $1.05 in share-based compensation costs, $0.94 to $0.98 acquisition and integration related costs, and ($0.30) to ($0.34) other non-cash and Non-GAAP tax adjustments.

    Earnings Call and Supplementary Materials
    The Synaptics third quarter fiscal 2025 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, May 8, 2025, during which the company may discuss forward-looking information.

    Speaker:

    • Ken Rizvi, Interim CEO and Chief Financial Officer

    To participate on the live call, analysts and investors should pre-register at Synaptics Q3 FY2025 Earnings Call Registration.
    https://register-conf.media-server.com/register/BI116ee59c921049ac96b9faa761d08c9c.

    Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s website at https://investor.synaptics.com/.

    About Synaptics Incorporated:
    Synaptics (Nasdaq: SYNA) is driving innovation in AI at the Edge, bringing AI closer to end users and transforming how we engage with intelligent connected devices, whether at home, at work, or on the move. As a go-to partner for forward-thinking product innovators, Synaptics powers the future with its cutting-edge Synaptics Astra™ AI-Native embedded compute, Veros™ wireless connectivity, and multimodal sensing solutions. We’re making the digital experience smarter, faster, more intuitive, secure, and seamless. From touch, display, and biometrics to AI-driven wireless connectivity, video, vision, audio, speech, and security processing, Synaptics is a force behind the next generation of technology enhancing how we live, work, and play. Follow Synaptics on LinkedIn, X and Facebook, or visit synaptics.com.

    Use of Non-GAAP Financial Information
    In evaluating its business, Synaptics considers and uses Non-GAAP Net Income, which we define as net income excluding share-based compensation, acquisition-related costs, and certain other non-cash or recurring and non-recurring items the company does not believe are indicative of its core operating performance, as a supplemental measure of operating performance. Non-GAAP Net Income is not a measurement of the company’s financial performance under GAAP and should not be considered as an alternative to GAAP Net Income. The company presents Non-GAAP Net Income because it considers it an important supplemental measure of its performance since it facilitates operating performance comparisons from period to period by eliminating potential differences in net income caused by the existence and timing of share-based compensation charges, acquisition and integration-related costs, restructuring costs, and certain other non-cash or recurring and non-recurring items. Non-GAAP Net Income has limitations as an analytical tool and should not be considered in isolation or as a substitute for the company’s GAAP Net Income. The principal limitations of this measure are that it does not reflect the company’s actual expenses and may thus have the effect of inflating its net income and net income per share as compared to its operating results reported under GAAP. In addition, the company presents components of Non-GAAP Net Income, such as Non-GAAP Gross Margin, Non-GAAP operating expenses and Non-GAAP operating margin, for similar reasons.

    As presented in the “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures” tables that follow, Non-GAAP Net Income and each of the other Non-GAAP financial measures excludes one or more of the following items:

    Acquisition and integration-related costs
    Acquisition and integration-related costs primarily consist of:

    • amortization of purchased intangibles, which include acquired intangibles such as developed technology, customer relationships, trademarks, backlog, licensed technology, patents, and in-process technology when post-acquisition development is determined to be substantively complete;
    • inventory fair value adjustments affecting the carrying value of inventory acquired in an acquisition;
    • transitory post-acquisition incentive programs negotiated in connection with an acquired business or designed to encourage post-acquisition retention of key employees; and
    • legal and consulting costs directly associated with acquisitions, potential acquisitions and refinancing costs, including non-recurring acquisition related costs and services.

    These acquisition and integration-related costs are not factored into the company’s evaluation of its ongoing business operating performance or potential acquisitions, as they are not considered as part of the company’s principal operations. Further, the amount of these costs can vary significantly from period to period based on the terms of an earn-out arrangement, revisions to assumptions that went into developing the estimate of the contingent consideration associated with an earn-out arrangement, the size and timing of an acquisition, the lives assigned to the acquired intangible assets, and the maturity of the business acquired. Excluding acquisition related costs from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability and potential earnings volatility associated with purchase accounting and acquisition-related items.

    Share-based compensation
    Share-based compensation expense relates to employee equity award programs and the vesting of the underlying awards, which includes stock options, deferred stock units, market stock units, performance stock units, phantom stock units and the employee stock purchase plan. Share-based compensation settled with stock, which includes stock options, deferred stock units, market stock units, performance stock units and the employee stock purchase plan, is a non-cash expense, while share-based compensation settled with cash, which includes phantom stock units, is a cash expense. Settlement of all employee equity award programs, whether settled with cash or stock, varies in amount from period to period and is dependent on market forces that are often beyond the company’s control. As a result, the company excludes share-based compensation from its internal operating forecasts and models. The company believes that Non-GAAP measures reflecting adjustments for share-based compensation provide investors with a basis to compare the company’s principal operating performance against the performance of peer companies without the variability created by share-based compensation resulting from the variety of equity-linked compensatory awards used by other companies and the varying methodologies and assumptions used.

    Intangible asset impairment charge
    Intangible asset impairment charge represents the excess carrying value of an indefinite-lived asset over its fair value. The intangible asset impairment charge is a non-cash charge. The company excludes intangible asset impairment charge from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures, reflecting adjustments for intangible asset impairment charge, provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by the intangible asset impairment charge.

    Restructuring costs
    Restructuring costs are costs incurred to address cost structure inefficiencies of acquired or existing business operations and consist primarily of employee termination, asset disposal and office closure costs, including the reversal of such costs. As a result, the company excludes restructuring costs from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that Non-GAAP measures reflecting adjustments for restructuring costs provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by restructuring costs designed to address cost structure inefficiencies of acquired or existing business operations.

    Site remediation accrual
    Site remediation accrual represents an update to the estimated future costs associated with the ongoing planning and remediation of a site contamination project from an acquisition. As we evaluate progress on our ongoing remediation effort and as we work with governmental organizations to update our remediation plan to meet the evolving guidelines, we estimate costs associated with plan revisions to determine if our liability has changed. Excluding the site remediation accrual from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with the site remediation accrual.

    Legal settlement accruals and other
    Legal settlement accruals and other represent our estimated cost of settling legal claims and any obligations to indemnify a counterparty against third party claims that are unusual or infrequent. As a result, the company will exclude these settlement charges from its internal operating forecasts and models when evaluating its ongoing business performance. The company believes that non-GAAP measures reflecting an adjustment for settlement charges provide investors with a basis to compare the company’s principal operating performance against the performance of other companies without the variability created by unusual or infrequent settlement accruals designed to address non-recurring or non-routine costs.

    Loss on early extinguishment of debt
    Loss on extinguishment of debt represents a non-cash item based on the difference in the carrying value of the debt and the fair value of the debt when extinguished. Loss on early extinguishment of debt is excluded from Non-GAAP results as it is non-cash. Excluding loss on early extinguishment of debt from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with loss on early extinguishment of debt.

    Other non-cash items
    Other non-cash items include non-cash amortization of debt discount and issuance costs. These items are excluded from Non-GAAP results as they are non-cash. Excluding other non-cash items from Non-GAAP measures provides investors with a basis to compare Synaptics against the performance of other companies without the variability associated with other non-cash items.

    Non-GAAP tax adjustments
    The company forecasts its long-term Non-GAAP tax rate in order to provide investors with improved long-term modeling accuracy and consistency across financial reporting periods by eliminating the effects of certain items in our Non-GAAP net income and Non-GAAP net income per share, including the type and amount of share-based compensation, the taxation of post-acquisition intercompany intellectual property cross-licensing or transfer transactions, and the impact of other acquisition items that may or may not be tax deductible. The company intends to evaluate its long-term Non-GAAP tax rate annually for significant events, including material tax law changes in the major tax jurisdictions in which the company operates, corporate organizational changes related to acquisitions or tax planning opportunities, and substantive changes in our geographic earnings mix.

    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the company’s current expectations and projections relating to its financial condition, results of operations, including the company’s financial guidance for fourth quarter fiscal 2025, plans, objectives, future performance and business, including the expected benefits from the transaction with Broadcom. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “commit,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to  macroeconomic uncertainties in the U.S. and globally, including trade tensions, tariffs, supply chain disruptions, and inflation, which may adversely affect our products and those of our customers and suppliers; risks related to the company’s dependence on its solutions for the Core IoT and Enterprise and Automotive product applications market for a substantial portion of its revenue; the volatility of the company’s net revenue from its solutions for Core IoT and Enterprise and Automotive product applications; the company’s dependence on one or more large customers; the company’s exposure to industry downturns and cyclicality in its target markets; the company’s ability to successfully offer product solutions for new markets; the company’s expectations regarding technology and strategic investments and the anticipated timing or benefits thereof; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedule; the company’s indemnification obligations for any third party claims;  risks related to global and geopolitical tensions, regional instabilities and hostilities (including the conflict in the Middle East), economic volatility, and regulatory changes, including tariff increases, any of which may lead to reduced customer demand, supply chain disruptions, and increased costs, which could require operational adjustments such as reductions in force, adversely affecting our business and results of operations; risks related to the company’s ability to recruit and retain key personnel, particularly during a CEO transition period; the company’s ability to realize anticipated benefits from the transaction with Broadcom, the company’s ability to grow sales and expand into the serviceable wireless market as expected; risks related to our ability to deliver expected financial or strategic benefits from investing in growth while simultaneously returning capital to shareholders through share repurchases; and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and the company’s most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. For any forward-looking statements contained in this press release, the company claims ​the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

    Synaptics and the Synaptics logo are trademarks of Synaptics in the United States and/or other countries. All other marks are the property of their respective owners.

    For more information, please contact:
    Munjal Shah
    Head of Investor Relations
    +1-408-518-7639
    munjal.shah@synaptics.com

     
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
     
      March 2025   June 2024
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 360.4     $ 876.9  
    Short-term investments   61.0        
    Accounts receivable, net   132.0       142.4  
    Inventories, net   132.9       114.0  
    Prepaid expenses and other current assets   26.3       29.0  
    Total current assets   712.6       1,162.3  
    Property and equipment, net   71.0       75.5  
    Goodwill   872.3       816.4  
    Acquired intangibles, net   296.3       288.4  
    Deferred tax assets   389.0       345.6  
    Other non-current assets   213.1       136.8  
    Total assets $ 2,554.3     $ 2,825.0  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current Liabilities:      
    Accounts payable $ 90.0     $ 87.5  
    Accrued compensation   46.7       27.4  
    Other accrued liabilities   110.8       156.3  
    Current portion of long-term debt         6.0  
    Total current liabilities   247.5       277.2  
    Long-term debt   834.2       966.9  
    Other long-term liabilities   85.6       114.1  
    Total liabilities   1,167.3       1,358.2  
    Stockholders’ Equity:      
    Common stock and additional paid-in capital   1,183.2       1,107.1  
    Treasury stock   (990.8 )     (878.0 )
    Retained earnings   1,194.6       1,237.7  
    Total stockholders’ equity   1,387.0       1,466.8  
    Total liabilities and stockholders’ equity $ 2,554.3     $ 2,825.0  
                   
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      March   March
        2025       2024       2025       2024  
    Net revenue $ 266.6     $ 237.3     $ 791.5     $ 712.0  
    Cost of revenue   150.8       127.0       432.6       385.6  
    Gross margin   115.8       110.3       358.9       326.4  
    Operating expenses:              
    Research and development   88.6       83.4       253.2       251.9  
    Selling, general, and administrative   34.7       40.5       134.2       122.5  
    Acquired intangibles amortization (1)   4.5       4.0       12.1       13.4  
    Intangible asset impairment charges (2)   13.8             13.8        
    Restructuring costs (3)   0.5       (0.2 )     15.5       9.1  
    Total operating expenses   142.1       127.7       428.8       396.9  
    Operating loss   (26.3 )     (17.4 )     (69.9 )     (70.5 )
    Interest and other expense, net   (1.1 )     (5.9 )     (11.3 )     (17.4 )
    Loss on early extinguishment of debt               (6.5 )      
    Loss before benefit from income taxes   (27.4 )     (23.3 )     (87.7 )     (87.9 )
    Benefit from income taxes   (5.6 )     (5.2 )     (44.6 )     (5.2 )
    Net loss $ (21.8 )   $ (18.1 )   $ (43.1 )   $ (82.7 )
    Net loss per share:              
    Basic $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Diluted $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Shares used in computing net loss per share:              
    Basic   39.0       39.3       39.5       39.1  
    Diluted   39.0       39.3       39.5       39.1  
     
    (1) These acquisition related costs consist primarily of amortization associated with certain acquired intangible assets.

    (2) Intangible asset impairment charges represent the excess carrying value of certain indefinite-lived asset over its fair value.

    (3) Restructuring costs primarily include severance related costs associated with operational restructurings.

     
    SYNAPTICS INCORPORATED
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Nine Months Ended
      March   March
        2025       2024       2025       2024  
    GAAP gross margin $ 115.8     $ 110.3     $ 358.9     $ 326.4  
    Acquisition and integration related costs   26.6       14.3       68.2       46.5  
    Share-based compensation   0.3       1.0       (2.1 )     3.2  
    Non-GAAP gross margin $ 142.7     $ 125.6     $ 425.0     $ 376.1  
    GAAP gross margin – percentage of revenue   43.4 %     46.5 %     45.3 %     45.8 %
    Acquisition and integration related costs – percentage of revenue   10.0 %     6.0 %     8.6 %     6.5 %
    Share-based compensation – percentage of revenue   0.1 %     0.4 %     (0.2 %)     0.5 %
    Non-GAAP gross margin – percentage of revenue   53.5 %     52.9 %     53.7 %     52.8 %
    GAAP research and development expense $ 88.6     $ 83.4     $ 253.2     $ 251.9  
    Share-based compensation   (18.5 )     (15.0 )     (48.6 )     (45.7 )
    Non-GAAP research and development expense $ 70.1     $ 68.4     $ 204.6     $ 206.2  
    GAAP selling, general, and administrative expense $ 34.7     $ 40.5     $ 134.2       122.5  
    Share-based compensation   (1.1 )     (13.9 )     (35.2 )     (43.4 )
    Acquisition and integration related costs   (1.7 )           (6.4 )      
    Site remediation accrual                     (1.6 )
    Legal settlement accruals and other   (0.8 )           (3.0 )      
    Non-GAAP selling, general, and administrative expense $ 31.1     $ 26.6     $ 89.6     $ 77.5  
    GAAP operating loss $ (26.3 )   $ (17.4 )   $ (69.9 )   $ (70.5 )
    Acquisition and integration related costs   32.8       18.3       86.7       59.9  
    Share-based compensation   19.9       29.9       81.7       92.3  
    Legal settlement accruals and other   0.8             3.0        
    Restructuring costs   0.5       (0.2 )     15.5       9.1  
    Intangible asset impairment   13.8             13.8        
    Site remediation accrual                     1.6  
    Non-GAAP operating income $ 41.5     $ 30.6     $ 130.8     $ 92.4  
    GAAP net loss $ (21.8 )   $ (18.1 )   $ (43.1 )   $ (82.7 )
    Acquisition and integration related costs   32.8       18.3       86.7       59.9  
    Share-based compensation   19.9       29.9       81.7       92.3  
    Restructuring costs   0.5       (0.2 )     15.5       9.1  
    Intangible asset impairment   13.8             13.8        
    Site remediation accrual                     1.6  
    Legal settlement accruals and other   0.8             3.0        
    Loss on early extinguishment of debt               6.5        
    Other non-cash items   0.7       0.6       1.9       1.9  
    Non-GAAP tax adjustments   (11.4 )     (9.5 )     (61.6 )     (18.3 )
    Non-GAAP net income $ 35.3     $ 21.0     $ 104.4     $ 63.8  
    GAAP net loss per share $ (0.56 )   $ (0.46 )   $ (1.09 )   $ (2.12 )
    Acquisition and integration related costs   0.84       0.47       2.19       1.53  
    Share-based compensation   0.51       0.76       2.07       2.36  
    Restructuring costs   0.01       (0.01 )     0.39       0.23  
    Intangible asset impairment   0.35             0.35        
    Site remediation accrual                     0.04  
    Legal settlement accruals and other   0.02             0.08        
    Loss on early extinguishment of debt               0.16        
    Other non-cash items   0.02       0.02       0.05       0.05  
    Non-GAAP tax adjustments   (0.29 )     (0.24 )     (1.56 )     (0.47 )
    Share adjustment         (0.01 )     (0.02 )      
    Non-GAAP net income per share – diluted $ 0.90     $ 0.53     $ 2.62     $ 1.62  
                                   
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED CASH FLOWS
    (In millions)
    (Unaudited)
     
      Nine Months Ended
      March 2025
        2025       2024  
    Net loss $ (43.1 )   $ (82.7 )
    Non-cash operating items   161.0       176.8  
    Changes in working capital   (33.1 )     (23.2 )
    Net cash provided by operating activities   84.8       70.9  
           
    Acquisition of business, net of cash and cash equivalents acquired   (198.8 )      
    Purchase of intangible assets   (10.0 )     (13.5 )
    Purchases of short-term investments   (61.0 )     (16.6 )
    Advance payment on intangible assets         (116.5 )
    Net proceeds from maturities and sales of short-term investments and other         26.0  
    Purchases of property and equipment   (19.2 )     (26.1 )
    Net cash used in investing activities   (289.0 )     (146.7 )
           
    Proceeds from issuance of convertible senior notes, net of issuance costs   439.5        
    Payment of debt issuance costs on convertible senior notes and revolving credit facility   (4.4 )      
    Payments for capped call transactions related to the convertible senior notes   (49.9 )      
    Repurchases of common stock, excluding excise taxes   (112.3 )      
    Equity compensation, net   (3.3 )     (17.8 )
    Repayment of debt   (583.5 )     (6.0 )
    Other   0.9       3.4  
    Net cash used in financing activities   (313.0 )     (20.4 )
    Effect of exchange rate changes on cash and cash equivalents   0.7       (0.4 )
    Net decrease in cash and cash equivalents   (516.5 )     (96.6 )
    Cash and cash equivalents, beginning of period   876.9       924.7  
    Cash and cash equivalents, end of period $ 360.4     $ 828.1  
                   

    The MIL Network

  • MIL-OSI: Lantronix Reports Results for Third Quarter of Fiscal 2025

    Source: GlobeNewswire (MIL-OSI)

    • Third Quarter Net Revenue of $28.5 Million
    • Third Quarter GAAP EPS of ($0.10)
    • Third Quarter Non-GAAP EPS of $0.03

    IRVINE, Calif., May 08, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for the Internet of Things (IoT) solutions enabling Artificial Intelligence (AI) Edge Intelligence, today reported results for its third quarter of fiscal 2025.

    Despite a complex macroeconomic environment, Lantronix delivered revenue within guidance and continued executing its long-term strategy toward becoming a leader in intelligent edge computing.

    Lantronix continued its leadership in AI edge intelligence and industrial connectivity through several key initiatives in the last quarter. The company enabled Teledyne/FLIR’s AI-driven drone thermal camera, validating the performance and reliability of its Open-Q™ platform in mission-critical edge vision systems. Further expanding its AI-capable compute portfolio, Lantronix launched the Open-Q™ 8550CS SoM, built on Qualcomm’s advanced QCS8550 processor, which delivers premium AI/ML performance and is designed for next-generation industrial and robotics applications.

     Q3 FY2025 Financial Results

    • Net Revenue: $28.5 million, in range of $27.0 million to $31.0 million guidance
    • GAAP EPS: ($0.10), compared to ($0.01) in Q3 FY2024 and ($0.06) in Q2 FY2025
    • Non-GAAP EPS: $0.03, compared to $0.11 in Q3 FY2024 and $0.04 in Q2 FY2025

    “We’re positioning Lantronix to lead the next wave of industrial and enterprise transformation at the edge,” said Saleel Awsare, president and CEO of Lantronix. “This quarter reflects continued investment in high-growth areas — from AI-enabled gateways to 5G connectivity — while advancing our innovation roadmap, global partnerships and talent base.”

    Q4 FY2025 Business Outlook

    Lantronix expects the following results for the fourth fiscal quarter ending June 30, 2025:

    • Revenue: $26.5 million to $30.5 million
    • Non-GAAP EPS: $0.00 to $0.02

    Conference Call and Webcast

    Management will host an investor conference call and audio webcast on Thursday, May 8, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the third quarter of fiscal 2025 that ended March 31, 2025. To access the live conference call, investors should dial 1-844-802-2442 (U.S.) or 1-412-317-5135 (international) and indicate they are participating in the Lantronix fiscal 2025 third-quarter call.

    Investors can access a conference call replay starting at approximately 8:00 p.m. Pacific Time on May 8, 2025, on the Lantronix website. A telephonic replay will also be available through May 15, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada Toll-Free 855-669-9658 and entering passcode 3110521.

    About Lantronix

    Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth markets, including Smart Cities, Enterprise and Transportation. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that enable AI Edge Intelligence. Lantronix’s advanced solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.

    For more information, visit the Lantronix website.

    Discussion of Non-GAAP Financial Measures

    Lantronix believes that the presentation of non-GAAP financial information, when presented in conjunction with the corresponding GAAP measures, provides important supplemental information to management and investors regarding financial and business trends relating to the company’s financial condition and results of operations. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends to gain an understanding of our comparative operating performance. The non-GAAP financial measures disclosed by the company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations of the non-GAAP financial measures to the financial measures calculated in accordance with GAAP should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

    Non-GAAP net loss consists of net loss excluding (i) share-based compensation and the employer portion of withholding taxes on stock grants, (ii) depreciation and amortization, (iii) interest income (expense), (iv) other income (expense), (v) income tax provision (benefit), (vi) restructuring, severance and related charges, (vii) acquisition related costs, (viii) impairment of long-lived assets, (ix) amortization of purchased intangibles, (x) amortization of manufacturing profit in acquired inventory, (xi) fair value remeasurement of earnout consideration, and (xii) loss on extinguishment of debt.

    Non-GAAP EPS is calculated by dividing non-GAAP net loss by non-GAAP weighted-average shares outstanding (diluted). For purposes of calculating non-GAAP EPS, the calculation of GAAP weighted-average shares outstanding (diluted) is adjusted to exclude share-based compensation, which for GAAP purposes is treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

    Guidance on earnings per share growth is provided only on a non-GAAP basis due to the inherent difficulty of forecasting the timing or amount of certain items that have been excluded from the forward-looking non-GAAP measures, and a reconciliation to the comparable GAAP guidance has not been provided because certain factors that are materially significant to Lantronix’s ability to estimate the excluded items are not accessible or estimable on a forward-looking basis without unreasonable effort.

    Forward-Looking Statements

    This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the fourth fiscal quarter of 2025, our positioning to capitalize on the next wave of industrial and enterprise transformation using edge computing, and our expectations regarding high-growth market areas. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. trade policy, including recently increased or future tariffs, a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand;  the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, expected to be filed with the SEC on or about May 9, 2025 including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

    ©2025 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

    Lantronix Analyst and Investor Contact:        

    investors@lantronix.com

    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
           
      March 31,
      June 30,
      2025   2024
    Assets      
    Current assets:      
    Cash and cash equivalents $ 19,999     $ 26,237  
    Accounts receivable, net   23,648       31,279  
    Inventories, net   28,151       27,698  
    Contract manufacturers’ receivables   1,637       1,401  
    Prepaid expenses and other current assets   3,029       2,335  
    Total current assets   76,464       88,950  
    Property and equipment, net   2,768       4,016  
    Goodwill   31,089       27,824  
    Intangible assets, net   4,310       5,251  
    Lease right-of-use assets   8,974       9,567  
    Other assets   584       600  
    Total assets $ 124,189     $ 136,208  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 11,005     $ 10,347  
    Accrued payroll and related expenses   3,905       5,836  
    Current portion of long-term debt, net   3,063       3,002  
    Other current liabilities   10,594       10,971  
    Total current liabilities   28,567       30,156  
    Long-term debt, net   9,458       13,219  
    Other non-current liabilities   10,694       11,478  
    Total liabilities   48,719       54,853  
           
    Commitments and contingencies      
           
    Stockholders’ equity:      
    Common stock   4       4  
    Additional paid-in capital   306,858       304,001  
    Accumulated deficit   (231,763 )     (223,021 )
    Accumulated other comprehensive income   371       371  
    Total stockholders’ equity   75,470       81,355  
    Total liabilities and stockholders’ equity $ 124,189     $ 136,208  
           
    LANTRONIX, INC.  
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
                                           
                                           
      Three Months Ended   Nine Months Ended
      March 31,
      December 31,
      March 31,
      March 31,
      2025
      2024
      2024
      2025
      2024
    Net revenue $ 28,500     $ 31,161     $ 41,183     $ 94,084     $ 111,252  
    Cost of revenue   16,097       17,877       24,679       53,922       65,620  
    Gross profit   12,403       13,284       16,504       40,162       45,632  
    Operating expenses:                                      
    Selling, general and administrative   8,959       8,811       9,753       27,237       29,147  
    Research and development   4,463       4,984       5,186       14,403       15,017  
    Restructuring, severance and related charges   1,581       193       350       2,674       900  
    Acquisition-related costs   100       208             337        
    Fair value remeasurement of earnout consideration                           (9 )
    Amortization of intangible assets   879       1,248       1,310       3,378       4,004  
    Total operating expenses   15,982       15,444       16,599       48,029       49,059  
    Loss from operations   (3,579 )     (2,160 )     (95 )     (7,867 )     (3,427 )
    Interest expense, net   (159 )     (126 )     (171 )     (404 )     (741 )
    Other income (loss), net   (19 )     8       2       (48 )     (2 )
    Loss before income taxes   (3,757 )     (2,278 )     (264 )     (8,319 )     (4,170 )
    Provision for income taxes   111       94       159       423       732  
    Net loss $ (3,868 )   $ (2,372 )   $ (423 )   $ (8,742 )   $ (4,902 )
    Net loss per share – basic and diluted $ (0.10 )   $ (0.06 )   $ (0.01 )   $ (0.23 )   $ (0.13 )
    Weighted-average common shares – basic and diluted   38,820       38,631       37,509       38,493       37,283  
                                           
    LANTRONIX, INC.
    UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
    (In thousands, except per share data)
                       
      Three Months Ended    Nine Months Ended
      March 31,   December 31,
      March 31,    March 31, 
       2025     2024     2024     2025     2024 
                       
    GAAP net loss $ (3,868 )   $ (2,372 )   $ (423 )   $ (8,742 )   $ (4,902 )
    Non-GAAP adjustments:                  
    Cost of revenue:                  
    Share-based compensation   34       48       66       146       171  
    Employer portion of withholding taxes on stock grants         2       1       7       6  
    Amortization of manufacturing profit in acquired inventory   44             190       44       696  
    Depreciation and amortization   101       114       144       338       339  
    Total adjustments to cost of revenue   179       164       401       535       1,212  
    Selling, general and administrative:                  
    Share-based compensation   1,159       1,044       1,337       3,329       4,238  
    Employer portion of withholding taxes on stock grants   13       20       21       111       68  
    Depreciation and amortization   345       348       352       1,044       1,024  
    Total adjustments to selling, general and administrative   1,517       1,412       1,710       4,484       5,330  
    Research and development:                  
    Share-based compensation   324       421       469       1,155       1,381  
    Employer portion of withholding taxes on stock grants   4       2       9       25       27  
    Depreciation and amortization   56       111       76       236       236  
    Total adjustments to research and development   384       534       554       1,416       1,644  
    Restructuring, severance and related charges   1,581       193       350       2,674       900  
    Acquisition related costs   100       208             337        
    Fair value remeasurement of earnout consideration                           (9 )
    Amortization of purchased intangible assets   879       1,248       1,310       3,378       4,004  
    Litigation settlement cost         158             198        
    Total non-GAAP adjustments to operating expenses   4,461       3,753       3,924       12,487       11,869  
    Interest expense, net   159       126       171       404       741  
    Other (income) expense, net   19       (8 )     (2 )     48       2  
    Provision for income taxes   111       94       159       423       732  
    Total non-GAAP adjustments   4,929       4,129       4,653       13,897       14,556  
    Non-GAAP net income $ 1,061     $ 1,757     $ 4,230     $ 5,155     $ 9,654  
                       
                       
    Non-GAAP net income per share – diluted $ 0.03     $ 0.04     $ 0.11     $ 0.13     $ 0.25  
                       
    Denominator for GAAP net income (loss) per share – diluted   38,820       38,631       37,509       38,493       37,283  
    Non-GAAP adjustment   1,300       953       1,674       1,034       1,021  
    Denominator for non-GAAP net income per share – diluted   40,120       39,584       39,183       39,527       38,304  
                       
    GAAP cost of revenue $ 16,097     $ 17,877     $ 24,679     $ 53,922     $ 65,620  
    Non-GAAP adjustments to cost of revenue   (179 )     (164 )     (401 )     (535 )     (1,212 )
    Non-GAAP cost of revenue   15,918       17,713       24,278       53,387       64,408  
    Non-GAAP gross profit $ 12,582     $ 13,448     $ 16,905     $ 40,697     $ 46,844  
    Non-GAAP gross margin   44.1 %     43.2 %     41.0 %     43.3 %     42.1 %
                       
    LANTRONIX, INC.
    UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
    (In thousands)
                       
      Three Months Ended   Nine Months Ended
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      March 31,
    2025
      March 31,
    2024
    Embedded IoT Solutions $ 11,990   $ 10,784   $ 12,452   $ 36,161   $ 35,589
    IoT System Solutions   14,730     18,592     26,789     52,081     68,847
    Software & Services   1,780     1,785     1,942     5,842     6,816
      $ 28,500   $ 31,161   $ 41,183   $ 94,084   $ 111,252
                       
                       
      Three Months Ended   Nine Months Ended
      March 31,
    2025
      December 31,
    2024
      March 31,
    2024
      March 31,
    2025
      March 31,
    2024
    Americas $ 16,497   $ 16,386   $ 17,543   $ 50,303   $ 61,077
    EMEA   6,048     9,036     18,354     25,568     37,831
    Asia Pacific Japan   5,955     5,739     5,286     18,213     12,344
      $ 28,500   $ 31,161   $ 41,183   $ 94,084   $ 111,252
                       

    The MIL Network

  • MIL-OSI: IBEX Reports Record Quarterly Revenue and EPS, Returns to Double-Digit Growth, Raises Fiscal Year Guidance

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly revenue grew 11% versus prior year quarter – highest growth in ten quarters
    • Adjusted EPS of $0.82 – an increase of 18% to prior year quarter
    • Makes strategic entry into India – launching with leading healthcare client
    • Board authorizes a new $15 million share repurchase plan

    WASHINGTON, May 08, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its third fiscal quarter ended March 31, 2025.

      Three months ended March 31, 2025   Nine months ended March 31, 2025
    ($ millions, except per share amounts)   2025       2024     Change     2025       2024     Change
    Revenue $ 140,736     $ 126,795       11.0 %   $ 411,135     $ 384,038       7.1 %
    Net income $ 10,469     $ 10,310       1.5 %   $ 27,268     $ 23,810       14.5 %
    Net income margin   7.4 %     8.1 %     (70) bps       6.6 %     6.2 %     40 bps  
    Adjusted net income (1) $ 11,787     $ 12,558       (6.1)%     $ 30,434     $ 28,156       8.1 %
    Adjusted net income margin (1)   8.4 %     9.9 %     (150) bps       7.4 %     7.3 %     10 bps  
    Adjusted EBITDA (1) $ 19,380     $ 19,204       0.9 %   $ 51,505     $ 47,239       9.0 %
    Adjusted EBITDA margin (1)   13.8 %     15.1 %     (130) bps       12.5 %     12.3 %     20 bps  
    Earnings per share – diluted (2) $ 0.73     $ 0.57       27.5 %   $ 1.70     $ 1.29       31.9 %
    Adjusted earnings per share – diluted (1,2) $ 0.82     $ 0.70       17.9 %   $ 1.90     $ 1.53       24.4 %
                           
    (1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
    (2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented.
     

    “Marking the continuation of a strong first half for fiscal year 2025, I am proud to report yet another quarter of record financial results,” said Bob Dechant, ibex CEO. “Ibex returned to double-digit top-line revenue growth with 11%, our highest rate in ten quarters. Our growth continues to be driven by outstanding performance within our embedded base clients, new client wins, and our ability to drive innovative AI solutions across our clients. I am excited to report that our new logo team performed extremely well with four signature wins in the quarter for a total of 12 year to date. Importantly, we achieved a major strategic milestone in the quarter with the seamless launch for a leading Healthcare company in our newest location, India. Operating in this key location has been a strategic priority for our company and further enhances our client delivery options.”

    “With the strength and trajectory of our business, we are raising guidance for both revenue and adjusted EBITDA, as well as announcing a newly authorized share repurchase plan, reflecting the board of directors’ and management’s confidence in ibex,” added Dechant.

    Third Quarter Financial Performance
    Revenue

    • Revenue of $140.7 million, an increase of 11.0% from $126.8 million in the prior year quarter. Growth was driven in our top three verticals; HealthTech (+20.0%), Travel, Transportation and Logistics (+18.7%), and Retail & E-commerce (+14.6%), along with growth in the digital acquisition business.

    Net Income and Earnings Per Share

    • Net income increased slightly to $10.5 million compared to $10.3 million in the prior year quarter. Net income was favorably impacted by an increase in gross margin as a result of the impact of revenue growth particularly in our higher margin offshore regions, offset by increases in selling, general, and administrative, interest, and income tax expenses.
    • Diluted earnings per share increased to $0.73 compared to $0.57 in the prior year quarter. Earnings per share benefited from diluted shares outstanding declining to 14.4 million compared to 18.0 million in the prior year quarter as a result of our share repurchase activities.
    • Net income margin decreased to 7.4% compared to 8.1% in the prior year quarter.
    • Non-GAAP adjusted net income decreased to $11.8 million compared to $12.6 million in the prior year quarter (see Exhibit 1 for reconciliation).
    • Non-GAAP adjusted diluted earnings per share increased to $0.82 compared to $0.70 in the prior year quarter (see Exhibit 1 for reconciliation).

    Adjusted EBITDA

    • Adjusted EBITDA increased to $19.4 million compared to $19.2 million in the prior year quarter (see Exhibit 2 for reconciliation).
    • Adjusted EBITDA margin decreased to 13.8% compared to 15.1% in the prior year quarter (see Exhibit 2 for reconciliation). This decrease was primarily driven by increases in selling, general, and administrative expenses including costs associated with our expansion into India.

    Cash Flow and Balance Sheet

    • Capital expenditures were $5.3 million compared to $1.7 million in the prior year quarter. The planned increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions.
    • Cash flow from operating activities was $8.8 million compared to $11.4 million in the prior year quarter. Free cash flow was $3.6 million compared to $9.7 million in the prior year quarter (see Exhibit 3 for reconciliation). Improvement in days sales outstanding in the quarter to 77 days was offset by the planned increased capital expenditures to fund growth and investments for expansion into India.
    • Net debt was $7.6 million, an improvement of $6.1 million compared to net debt of $13.7 million as of December 31, 2024. This reflects the impact of our $70 million TRGI share repurchase when compared to our net cash position of $61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation).

    “We achieved outstanding top and strong bottom line third quarter results. We delivered a multi-year high top-line performance with 11% revenue growth, over 7% fiscal year to date, with 19% growth in our highest margin offshore regions. Our adjusted EPS of $0.82, was up 18% over the prior year quarter, and was a record for our business. The continued expansion of our embedded client base and new client wins over the last year drove these excellent results,” said Taylor Greenwald, CFO of ibex.

    “The upward trend in our results over the last few quarters not only enable strategic investments in our growing AI capabilities and sales resources, but also our in-quarter entry into the India market. Importantly, these results instill continued confidence in the execution of our strategy, enabling us to again raise our fiscal year guidance, commence the newly authorized share repurchase plan, and continue to return value to shareholders.”

    Raised Fiscal Year 2025 Guidance

    • Revenue is expected to be in the range of $540 to $545 million versus a previous range of $525 to $535 million.
    • Adjusted EBITDA is expected to be in the range of $68 to $70 million versus a previous range of $68 to $69 million.
    • Capital expenditures are expected to remain in the range of $15 to $20 million.

    Share Repurchase Plan
    The board of directors (the “Board”) has authorized a share repurchase plan to commence May 12, 2025 under which the Company may repurchase up to $15 million of its shares over the next 12 months (the “Share Repurchase Plan”).

    The Company’s proposed repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations. The actual timing, number, and dollar amount of repurchase transactions will be subject to Rule 10b-18 and/or Rule 10b5-1 under the Securities Exchange Act of 1934.

    The Board will review the Share Repurchase Plan periodically and may authorize adjustment of its terms and size or suspend or discontinue the plan. The Company expects to fund the repurchases under this plan with its existing cash balance.

    The Share Repurchase Plan does not obligate the Company to acquire any particular amount of common shares, and the plan may be suspended or discontinued at any time at the Company’s discretion.

    Conference Call and Webcast Information
    IBEX Limited will host a conference call and live webcast to discuss its third quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, May 8, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.

    Live and archived webcasts can be accessed at: https://investors.ibex.co/.

    Financial Information
    This announcement does not contain sufficient information to constitute an interim financial report as defined in Financial Accounting Standards ASC 270, “Interim Reporting.” The financial information in this press release has not been audited.

    Non-GAAP Financial Measures
    We present non-GAAP financial measures because we believe that they and other similar measures are widely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity. We also use these measures internally to establish forecasts, budgets and operational goals to manage and monitor our business, as well as evaluate our underlying historical performance, as we believe that these non-GAAP financial measures provide a more helpful depiction of our performance of the business by encompassing only relevant and manageable events, enabling us to evaluate and plan more effectively for the future. The non-GAAP financial measures may not be comparable to other similarly titled measures of other companies, have limitations as analytical tools, and should not be considered in isolation or as a substitute for analysis of our operating results as reported in accordance with accounting principles generally accepted in the United States (“GAAP”). Non-GAAP financial measures and ratios are not measurements of our performance, financial condition or liquidity under GAAP and should not be considered as alternatives to operating profit or net income / (loss) or as alternatives to cash flow from operating, investing or financing activities for the period, or any other performance measures, derived in accordance with GAAP.

    ibex is not providing a quantitative reconciliation of forward-looking non-GAAP adjusted EBITDA to the most directly comparable GAAP measure because it is unable to predict with reasonable certainty the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, non-recurring expenses, foreign currency gains and losses, and share-based compensation expense. These items are uncertain, depend on various factors, and could have a material impact on GAAP reported results for the guidance period.

    About ibex
    ibex helps the world’s preeminent brands more effectively engage their customers with services ranging from customer support, technical support, inbound/outbound sales, business intelligence and analytics, digital demand generation, and CX surveys and feedback analytics.

    Forward Looking Statements
    In addition to historical information, this press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. These statements include, but are not limited to, statements regarding our future financial and operating performance, including our outlook and guidance, and our strategies, priorities and business plans. Our expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could impact our actual results include: our ability to attract new business and retain key clients; our profitability based on our utilization, pricing and managing costs; the potential for our clients or potential clients to consolidate; our clients deciding to enter into or further expand their insourcing activities and current trends toward outsourcing services may reverse; general economic uncertainty in global markets and unfavorable economic conditions, including inflation, rising interest rates, recession, foreign exchange fluctuations and supply-chain issues; our ability to manage our international operations, particularly in the Philippines, Jamaica, Pakistan and Nicaragua; natural events, health epidemics, global geopolitical conditions, including developing or ongoing conflicts, widespread civil unrest, terrorist attacks and other attacks of violence involving any of the countries in which we or our clients operate; our ability to anticipate, develop and implement information technology solutions that keep pace with evolving industry standards and changing client demands, including the effective adoption of Artificial Intelligence into our offerings; our ability to recruit, engage, motivate, manage and retain our global workforce; our ability to comply with applicable laws and regulations, including those regarding privacy, data protection and information security, employment and anti-corruption; the effect of cyberattacks or cybersecurity vulnerabilities on our information technology systems; our ability to realize the anticipated strategic and financial benefits of our relationship with Amazon; the impact of tax matters, including new legislation and actions by taxing authorities; and other factors discussed in the “Risk Factors” described in our periodic reports filed with the U.S. Securities and Exchange Commission (“SEC”), including our annual reports on Form 10-K, quarterly reports on Form 10-Q, and past filings on Form 20-F, and any other risk factors we include in subsequent filings with the SEC. Because of these uncertainties, you should not make any investment decisions based on our estimates and forward-looking statements. Except as required by law, we undertake no obligation to publicly update any forward-looking statements for any reason after the date of this press release whether as a result of new information, future events or otherwise.

    IR Contact:  Michael Darwal, EVP, Investor Relations, ibex, michael.darwal@ibex.co
    Media Contact:  Daniel Burris, VP, Marketing and Communication, ibex, daniel.burris@ibex.co

     
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Unaudited)
    (in thousands)
     
      March 31,
    2025
      June 30,
    2024
    Assets      
    Current assets      
    Cash and cash equivalents $ 12,977     $ 62,720  
    Accounts receivable, net   120,035       98,366  
    Prepaid expenses   8,103       7,712  
    Due from related parties   50       192  
    Tax advances and receivables   4,976       9,080  
    Other current assets   2,523       1,888  
    Total current assets   148,664       179,958  
           
    Non-current assets      
    Property and equipment, net   30,481       29,862  
    Operating lease assets   65,726       59,145  
    Goodwill   11,832       11,832  
    Deferred tax asset, net   5,994       4,285  
    Other non-current assets   12,034       8,822  
    Total non-current assets   126,067       113,946  
    Total assets $ 274,731     $ 293,904  
           
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable and accrued liabilities $ 18,430     $ 16,719  
    Accrued payroll and employee-related liabilities   29,653       30,674  
    Current deferred revenue   6,019       4,749  
    Current operating lease liabilities   14,225       12,051  
    Current debt   19,862       660  
    Due to related parties         60  
    Income taxes payable   821       6,083  
    Total current liabilities   89,010       70,996  
           
    Non-current liabilities      
    Non-current deferred revenue   1,060       1,128  
    Non-current operating lease liabilities   56,944       53,441  
    Long-term debt   735       867  
    Other non-current liabilities   2,801       1,673  
    Total non-current liabilities   61,540       57,109  
    Total liabilities   150,550       128,105  
           
    Stockholders’ equity      
    Common Stock   1       2  
    Additional paid-in capital   216,184       210,200  
    Treasury stock   (101,658 )     (25,367 )
    Accumulated other comprehensive loss   (6,491 )     (7,913 )
    Retained earnings / (deficit)   16,145       (11,123 )
    Total stockholders’ equity   124,181       165,799  
    Total liabilities and stockholders’ equity $ 274,731     $ 293,904  
                   
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Comprehensive Income
    (Unaudited)
    (in thousands, except per share data)
     
      Three Months Ended March 31,   Nine Months Ended March 31,
        2025       2024       2025       2024  
    Revenue $ 140,736     $ 126,795     $ 411,135     $ 384,038  
                   
    Cost of services (exclusive of depreciation and amortization presented separately below)   96,017       87,083       284,820       271,163  
    Selling, general and administrative   27,061       23,565       78,982       71,462  
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    Total operating expenses   127,407       115,513       376,786       357,478  
    Income from operations   13,329       11,282       34,349       26,560  
                   
    Interest income   32       431       926       1,529  
    Interest expense   (404 )     (124 )     (1,186 )     (339 )
    Income before income taxes   12,957       11,589       34,089       27,750  
                   
    Provision for income tax expense   (2,488 )     (1,279 )     (6,821 )     (3,940 )
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
                   
    Other comprehensive income              
    Foreign currency translation adjustments $ 374     $ (288 )   $ 851     $ (310 )
    Unrealized gain / (loss) on cash flow hedging instruments, net of tax   385       (131 )     571       70  
    Total other comprehensive income / (loss)   759       (419 )     1,422       (240 )
    Total comprehensive income $ 11,228     $ 9,891     $ 28,690     $ 23,570  
                   
    Net income per share              
    Basic $ 0.79     $ 0.59     $ 1.80     $ 1.33  
    Diluted $ 0.73     $ 0.57     $ 1.70     $ 1.29  
                   
    Weighted average common shares outstanding              
    Basic   13,264       17,468       15,109       17,880  
    Diluted   14,404       18,036       16,135       18,458  
                                   
    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Cash Flows
    (Unaudited)
    (in thousands)
     
      Three Months Ended March 31,   Nine Months Ended March 31,
        2025       2024       2025       2024  
    CASH FLOWS FROM OPERATING ACTIVITIES              
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    Noncash lease expense   3,611       3,386       10,020       9,908  
    Warrant contra revenue         299             893  
    Deferred income tax   (942 )     290       (1,709 )     586  
    Share-based compensation expense   1,601       466       3,506       2,741  
    Allowance of expected credit losses   105       56       428       62  
    Impairment losses         1,257             1,257  
    Change in assets and liabilities:              
    Decrease / (increase) in accounts receivable   455       1,395       (22,050 )     (16,941 )
    Decrease / (increase) in prepaid expenses and other current assets   1,405       (3,158 )     392       (5,350 )
    Increase in accounts payable and accrued liabilities   (6,120 )     (2,880 )     (3,042 )     (2,336 )
    (Decrease) / increase in deferred revenue   (1,262 )     (1,399 )     1,203       (1,098 )
    Decrease in operating lease liabilities   (4,823 )     (3,456 )     (11,269 )     (9,907 )
    Net cash inflow from operating activities   8,828       11,431       17,731       18,478  
                   
    CASH FLOWS FROM INVESTING ACTIVITIES              
    Purchase of property and equipment   (5,267 )     (1,691 )     (13,216 )     (6,635 )
    Net cash outflow from investing activities   (5,267 )     (1,691 )     (13,216 )     (6,635 )
                   
    CASH FLOWS FROM FINANCING ACTIVITIES              
    Proceeds from line of credit   60,150       57       69,310       153  
    Repayments of line of credit   (48,550 )     (57 )     (50,210 )     (205 )
    Proceeds from the exercise of options   2,809       351       3,534       362  
    Principal payments on finance leases   (286 )     (138 )     (639 )     (342 )
    Purchase of treasury shares   (25,052 )     (8,277 )     (76,421 )     (18,551 )
    Net cash outflow from financing activities   (10,929 )     (8,064 )     (54,426 )     (18,583 )
    Effects of exchange rate difference on cash and cash equivalents   139       (27 )     168       (24 )
    Net (decrease) / increase in cash and cash equivalents   (7,229 )     1,649       (49,743 )     (6,764 )
    Cash and cash equivalents, beginning   20,206       49,016       62,720       57,429  
    Cash and cash equivalents, ending $ 12,977     $ 50,665     $ 12,977     $ 50,665  
                   
    IBEX LIMITED AND SUBSIDIARIES
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
                   

    EXHIBIT 1: Adjusted net income, adjusted net income margin, and adjusted earnings per share

    We define adjusted net income as net income before the effect of the following items: severance costs, impairment losses, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense, net of the tax impact of such adjustments. We define adjusted net income margin as adjusted net income divided by revenue. We define adjusted earnings per share as adjusted net income divided by weighted average diluted shares outstanding.

    The following table provides a reconciliation of net income to adjusted net income, net income margin to adjusted net income margin, and diluted earnings per share to adjusted earnings per share for the periods presented:

      Three Months Ended March 31,
      Nine Months Ended March 31,
    ($000s, except per share amounts)   2025       2024       2025       2024  
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Net income margin   7.4 %     8.1 %     6.6 %     6.2 %
                   
    Severance costs         1,506             1,506  
    Impairment losses         1,257             1,257  
    Warrant contra revenue         299             893  
    Foreign currency loss / (gain)   121       (471 )     666       (571 )
    Share-based compensation expense   1,601       466       3,506       2,741  
    Total adjustments $ 1,722     $ 3,057     $ 4,172     $ 5,826  
    Tax impact of adjustments1   (404 )     (809 )     (1,006 )     (1,480 )
    Adjusted net income $ 11,787     $ 12,558     $ 30,434     $ 28,156  
    Adjusted net income margin   8.4 %     9.9 %     7.4 %     7.3 %
                   
    Diluted earnings per share $ 0.73     $ 0.57     $ 1.70     $ 1.29  
    Per share impact of adjustments to net income   0.09       0.12       0.20       0.24  
    Adjusted earnings per share $ 0.82     $ 0.70     $ 1.90     $ 1.53  
                   
    Weighted average diluted shares outstanding   14,404       18,036       16,135       18,458  
                   

    _______________
    1The tax impact of each adjustment is calculated using the effective tax rate in the relevant jurisdictions.

    EXHIBIT 2:  EBITDA, adjusted EBITDA, and adjusted EBITDA margin

    EBITDA is a non-GAAP profitability measure that represents net income before the effect of the following items: interest expense, income tax expense, and depreciation and amortization. Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before the effect of the following items: severance costs, impairment losses, interest income, warrant contra revenue, foreign currency gain / loss, and share-based compensation expense. Adjusted EBITDA margin is a non-GAAP profitability measure that represents adjusted EBITDA divided by revenue.

    The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA and net income margin to adjusted EBITDA margin for the periods presented:

      Three Months Ended March 31, Nine Months Ended March 31,
    ($000s)   2025       2024       2025       2024  
    Net income $ 10,469     $ 10,310     $ 27,268     $ 23,810  
    Net income margin   7.4 %     8.1 %     6.6 %     6.2 %
                   
    Interest expense   404       124       1,186       339  
    Income tax expense   2,488       1,279       6,821       3,940  
    Depreciation and amortization   4,329       4,865       12,984       14,853  
    EBITDA $ 17,690     $ 16,578     $ 48,259     $ 42,942  
    Severance costs         1,506             1,506  
    Impairment losses         1,257             1,257  
    Interest income   (32 )     (431 )     (926 )     (1,529 )
    Warrant contra revenue         299             893  
    Foreign currency loss / (gain)   121       (471 )     666       (571 )
    Share-based compensation expense   1,601       466       3,506       2,741  
    Adjusted EBITDA $ 19,380     $ 19,204     $ 51,505     $ 47,239  
                   
    Adjusted EBITDA margin   13.8 %     15.1 %     12.5 %     12.3 %
                   

    EXHIBIT 3: Free cash flow

    We define free cash flow as net cash provided by operating activities less capital expenditures.

      Three Months Ended March 31, Nine Months Ended March 31,
    ($000s)   2025       2024       2025       2024  
    Net cash provided by operating activities $ 8,828     $ 11,431     $ 17,731     $ 18,478  
    Less: capital expenditures   5,267       1,691       13,216       6,635  
    Free cash flow $ 3,561     $ 9,740     $ 4,515     $ 11,843  
                                   

    EXHIBIT 4: Net (debt) / cash

    We define net (debt) / cash as total cash and cash equivalents less debt.

      March 31,   June 30,
    ($000s)   2025       2024  
    Cash and cash equivalents $ 12,977     $ 62,720  
           
    Debt      
    Current $ 19,862     $ 660  
    Non-current   735       867  
    Total debt $ 20,597     $ 1,527  
    Net (debt) / cash $ (7,620 )   $ 61,193  
                   

    The MIL Network

  • MIL-OSI: Fidus Investment Corporation Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Board of Directors Declared Total Dividends of $0.54 per Share for Second Quarter 2025

    Base Dividend of $0.43 and Supplemental Dividend of $0.11 Per Share

    EVANSTON, Ill., May 08, 2025 (GLOBE NEWSWIRE) — Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Total investment income of $36.5 million
    • Net investment income of $18.2 million, or $0.53 per share
    • Adjusted net investment income of $18.5 million, or $0.54 per share(1)
    • Invested $115.6 million in debt and equity securities, including seven new portfolio companies
    • Received proceeds from repayments and realizations of $57.3 million
    • Paid total dividends of $0.54 per share: regular quarterly dividend of $0.43 and a supplemental dividend of $0.11 per share on March 27, 2025
    • Net asset value (“NAV”) of $677.9 million, or $19.39 per share, as of March 31, 2025
    • Estimated spillover income (or taxable income in excess of distributions) as of March 31, 2025 of $47.4 million, or $1.36 per share

    Management Commentary

    “We continued to build our portfolio of debt and equity investments in a methodical and disciplined manner during the first quarter by investing in high quality businesses with defensive characteristics and resilient business models that generate high levels of cash flow to service debt and support growth. We also monetized two equity investments for a net realized gain of $11.5 million, or $0.33 per share, which contributed to the increase in NAV,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “Our portfolio remains well diversified and healthy overall, and constructed to generate attractive risk-adjusted returns over time for the benefit of our shareholders.”

    (1)   Supplemental information regarding adjusted net investment income:

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

    First Quarter 2025 Financial Results

    The following table provides a summary of our operating results for the three months ended March 31, 2025, as compared to the same period in 2024 (dollars in thousands, except per share data):

                             
        Three Months Ended
    March 31,
                 
        2025     2024     $ Change     % Change  
    Interest income   $ 30,319     $ 28,138     $ 2,181       7.8 %
    Payment-in-kind interest income     2,248       2,049       199       9.7 %
    Dividend income     1,231       397       834       210.1 %
    Fee income     2,127       2,359       (232 )     (9.8 %)
    Interest on idle funds     571       1,708       (1,137 )     (66.6 %)
    Total investment income   $ 36,496     $ 34,651     $ 1,845       5.3 %
                             
    Net investment income   $ 18,222     $ 17,627     $ 595       3.4 %
    Net investment income per share   $ 0.53     $ 0.57     $ (0.04 )     (7.0 %)
                             
    Adjusted net investment income (1)   $ 18,509     $ 18,126     $ 383       2.1 %
    Adjusted net investment income per share (1)   $ 0.54     $ 0.59     $ (0.05 )     (8.5 %)
                             
    Net increase (decrease) in net assets resulting from operations   $ 19,658     $ 20,123     $ (465 )     (2.3 %)
    Net increase (decrease) in net assets resulting from operations per share   $ 0.58     $ 0.65     $ (0.07 )     (10.8 %)
                                     

    The $1.8 million increase in total investment income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily attributable to (i) a $2.4 million increase in total interest income (which includes payment-in-kind interest income) resulting from an increase in average debt investment balances outstanding, partially offset by a decrease in weighted average yield on debt investment balances outstanding, (ii) a $0.8 million increase in dividend income due to an increase in distributions received from equity investments, partially offset by (iii) a $0.2 million decrease in fee income resulting from a decrease in amendment and management services fees and (iv) a $1.2 million decrease in interest on idle funds resulting from a decrease in average cash balances.

    For the three months ended March 31, 2025, total expenses, including the base management fee waiver and income tax provision, were $18.3 million, an increase of $1.3 million, or 7.3% from the $17.0 million of total expenses, including the base management fee waiver and income tax provision, for the three months ended March 31, 2024. The increase was primarily attributable to (i) a $0.8 million increase in interest and financing expenses due to an increase in average borrowings outstanding and weighted average interest rates of our debt outstanding, (ii) a $0.6 million net increase in base management fee, including the base management fee waiver, due to higher average total assets, (iii) a $0.1 million increase in the income incentive fee, partially offset by (iv) a $0.2 million decrease in the accrued capital gains incentive fee.

    Net investment income increased by $0.6 million, or 3.4%, to $18.2 million during the three months ended March 31, 2025 as compared to the same period in 2024, as a result of the $1.8 million increase in total investment income and the $1.3 million increase in total expenses, including base management fee waiver and income tax provision. Adjusted net investment income,(1) which excludes the capital gains incentive fee accrual, was $0.54 per share compared to $0.59 per share in the prior year.

    For the three months ended March 31, 2025, the total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, was $11.5 million, as compared to total net realized gain/(loss) on investments, net of income tax (provision)/benefit on realized gains, of $1.8 million for the same period in 2024.

    Portfolio and Investment Activities

    As of March 31, 2025, the fair value of our investment portfolio totaled $1.2 billion and consisted of 92 active portfolio companies and four portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 100.5% of the related cost basis as of March 31, 2025. As of March 31, 2025, the debt investments of 52 portfolio companies bore interest at a variable rate, which represented $740.3 million, or 72.8%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of March 31, 2025, our average active portfolio company investment at amortized cost was $12.5 million, which excludes investments in four portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 13.2% as of March 31, 2025. The weighted average yield was computed using the effective interest rates for debt investments at cost as of March 31, 2025, including the accretion of original issue discounts and loan origination fees, but excluding investments on non-accrual status and investments recorded as a secured borrowing.

    First quarter 2025 investment activity included the following new portfolio company investments:

    • AMOpportunities, Inc., a healthcare training platform providing tech-enabled clinical rotation development and management services for schools, providers, and health systems. Fidus invested $10.0 million in first lien debt and $0.7 million in preferred equity.
    • Customer Expressions Corp. (dba Case IQ), a provider of SaaS-based Governance, Risk and Compliance (GRC) solutions to mid-size and large enterprises. Fidus invested $15.0 million in first lien debt and $0.8 million in common equity.
    • Fraser Steel LLC, a designer and manufacturer of steel tubular parts and assemblies for OEM customers used in a wide range of applications. Fidus invested $14.0 million in first lien debt, $0.1 million in preferred equity, $0.5 million in common equity, and made additional commitments up to $2.0 million in a revolving loan.
    • Info Tech Operating, LLC (dba infotech), a software solutions provider for the infrastructure construction industry. Fidus invested $13.5 million in first lien debt.
    • Mayesh Wholesale Florist, LLC, a leading U.S. wholesaler of premium, fresh cut flowers. Fidus invested $10.5 million in first lien debt, $0.5 million in preferred equity, and made additional commitments up to $2.0 million in first lien debt.
    • Onsight Industries, LLC, a leading provider of customized signs & displays, mailbox solutions, and site furnishings for the home builder and land developer industries. Fidus invested $9.1 million in first lien debt and $0.4 million in common equity.
    • PayEntry Financial Services, Inc. (dba Payentry), a leading provider of payroll processing and other complementary HR services (e.g., insurance, 401K, benefits, HCM solutions) to SMBs. Fidus invested $5.6 million in second lien debt, $0.8 million in preferred equity, and made additional commitments up to $6.0 million in second lien debt.

    Liquidity and Capital Resources

    As of March 31, 2025, we had $67.5 million in cash and cash equivalents and $140.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). For the three months ended March 31, 2025, we received net proceeds of $20.7 million from the equity at-the-market program (the “ATM Program”) and received net proceeds from the issuance of the March 2030 Notes (as defined below) of $96.9 million. As of March 31, 2025, we had SBA debentures outstanding of $182.0 million, $125.0 million outstanding of our 4.75% notes due January 2026 (the “January 2026 Notes”), $125.0 million outstanding of our 3.50% notes due November 2026 (the “November 2026 Notes”), and $100.0 million outstanding of our 6.75% March 2030 Notes (the “March 2030 Notes” and together with the January 2026 Notes and the November 2026 Notes, the “Notes”). As of March 31, 2025, the weighted average interest rate on total debt outstanding was 4.8%.

    Second Quarter 2025 Dividends Totaling $0.54 Per Share Declared

    On May 5, 2025, our board of directors declared a base dividend of $0.43 per share and a supplemental dividend of $0.11 per share for the second quarter. The dividends will be payable on June 25, 2025, to stockholders of record as of June 13, 2025.

    When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under GAAP due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2025 taxable income, as well as the tax attributes for 2025 dividends, will be made after the close of the 2025 tax year. The final tax attributes for 2025 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

    Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

    Subsequent Events

    On April 15, 2025, we invested $5.0 million in first lien debt, $0.4 million in preferred equity, $0.4 million in common equity, and committed up to $4.0 million in a revolving loan to Laboratory Testing, LLC, a provider of material testing and calibration services, primarily to the Aerospace & Defense end market.

    On April 23, 2025, we exited our debt investments in Elements Brands, LLC. We received payment in full of $3.7 million on our first lien debt, which includes fees.

    On May 5, 2025, we issued an additional $10.0 million in SBA debentures, which will bear interest at a fixed interim interest rate of 5.163% until the pooling date in September 2025.

    First Quarter 2025 Financial Results Conference Call

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

    A live webcast of the conference call will be available at http://investor.fdus.com/news-events/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

    ABOUT FIDUS INVESTMENT CORPORATION

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

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

    FORWARD-LOOKING STATEMENTS

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

     
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Assets and Liabilities
    (in thousands, except shares and per share data)
                     
        March 31,     December 31,  
        2025     2024  
    ASSETS                
    Investments, at fair value:                
    Control investments (cost: $6,832 and $6,832, respectively)   $     $  
    Affiliate investments (cost: $52,611 and $56,679, respectively)     91,066       102,024  
    Non-control/non-affiliate investments (cost: $1,089,409 and $1,011,646, respectively)     1,063,342       988,482  
    Total investments, at fair value (cost: $1,148,852 and $1,075,157, respectively)     1,154,408       1,090,506  
    Cash and cash equivalents     67,478       57,159  
    Interest receivable     18,404       15,119  
    Proceeds receivable from stock offering     701        
    Prepaid expenses and other assets     991       1,328  
    Total assets   $ 1,241,982     $ 1,164,112  
    LIABILITIES                
    SBA debentures, net of deferred financing costs   $ 175,870     $ 168,899  
    Notes, net of deferred financing costs     345,557       248,362  
    Borrowings under Credit Facility, net of deferred financing costs     (948 )     43,954  
    Secured borrowings     13,601       13,674  
    Accrued interest and fees payable     3,573       5,784  
    Base management fee payable, net of base management fee waiver – due to affiliate     4,863       4,805  
    Income incentive fee payable – due to affiliate     4,594       4,477  
    Capital gains incentive fee payable – due to affiliate     14,990       14,703  
    Administration fee payable and other, net – due to affiliate     295       919  
    Taxes payable     325       1,850  
    Accounts payable and other liabilities     1,332       1,019  
    Total liabilities   $ 564,052     $ 508,446  
    Commitments and contingencies                
    NET ASSETS                
    Common stock, $0.001 par value (100,000,000 shares authorized, 34,970,709 and 33,914,652 shares                
    issued and outstanding at March 31, 2025 and December 31, 2024, respectively)   $ 35     $ 34  
    Additional paid-in capital     588,519       567,159  
    Total distributable earnings     89,376       88,473  
    Total net assets     677,930       655,666  
    Total liabilities and net assets   $ 1,241,982     $ 1,164,112  
    Net asset value per common share   $ 19.39     $ 19.33  
     
    FIDUS INVESTMENT CORPORATION
    Consolidated Statements of Operations (unaudited)
    (in thousands, except shares and per share data)
     
        Three Months Ended  
        March 31,  
        2025     2024  
    Investment Income:            
    Interest income            
    Control investments   $     $  
    Affiliate investments     1,094       869  
    Non-control/non-affiliate investments     29,225       27,269  
    Total interest income     30,319       28,138  
    Payment-in-kind interest income            
    Control investments            
    Affiliate investments            
    Non-control/non-affiliate investments     2,248       2,049  
    Total payment-in-kind interest income     2,248       2,049  
    Dividend income            
    Control investments            
    Affiliate investments     886       348  
    Non-control/non-affiliate investments     345       49  
    Total dividend income     1,231       397  
    Fee income            
    Control investments            
    Affiliate investments     8       5  
    Non-control/non-affiliate investments     2,119       2,354  
    Total fee income     2,127       2,359  
    Interest on idle funds     571       1,708  
    Total investment income     36,496       34,651  
    Expenses:            
    Interest and financing expenses     6,773       6,012  
    Base management fee     4,922       4,432  
    Incentive fee – income     4,594       4,467  
    Incentive fee (reversal) – capital gains     287       499  
    Administrative service expenses     602       537  
    Professional fees     948       937  
    Other general and administrative expenses     206       229  
    Total expenses before base management fee waiver     18,332       17,113  
    Base management fee waiver     (59 )     (69 )
    Total expenses, net of base management fee waiver     18,273       17,044  
    Net investment income before income taxes     18,223       17,607  
    Income tax provision (benefit)     1       (20 )
    Net investment income     18,222       17,627  
    Net realized and unrealized gains (losses) on investments:            
    Net realized gains (losses):            
    Control investments            
    Affiliate investments     10,066        
    Non-control/non-affiliate investments     3,264       1,743  
    Total net realized gain (loss) on investments     13,330       1,743  
    Income tax (provision) benefit from realized gains on investments     (1,850 )     56  
    Net change in unrealized appreciation (depreciation):            
    Control investments            
    Affiliate investments     (6,890 )     (3,236 )
    Non-control/non-affiliate investments     (2,903 )     4,454  
    Total net change in unrealized appreciation (depreciation) on investments     (9,793 )     1,218  
    Net gain (loss) on investments     1,687       3,017  
    Realized losses on extinguishment of debt     (251 )     (521 )
    Net increase (decrease) in net assets resulting from operations   $ 19,658     $ 20,123  
    Per common share data:            
    Net investment income per share-basic and diluted   $ 0.53     $ 0.57  
    Net increase in net assets resulting from operations per share — basic and diluted   $ 0.58     $ 0.65  
    Dividends declared per share   $ 0.54     $ 0.65  
    Weighted average number of shares outstanding — basic and diluted     34,077,720       30,776,758  
    Schedule 1

    Supplemental Information Regarding Adjusted Net Investment Income

     

    On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our investment advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three months ended March 31, 2025 and 2024.

        ($ in thousands)  
        Three Months Ended  
        March 31,  
        (unaudited)  
        2025     2024  
    Net investment income   $ 18,222     $ 17,627  
    Capital gains incentive fee expense (reversal)     287       499  
    Adjusted net investment income (1)   $ 18,509     $ 18,126  
        (Per share)  
        Three Months Ended  
        March 31,  
        (unaudited)  
        2025     2024  
    Net investment income   $ 0.53     $ 0.57  
    Capital gains incentive fee expense (reversal)     0.01       0.02  
    Adjusted net investment income (1)   $ 0.54     $ 0.59  
    (1) Adjusted net investment income per share amounts are calculated as adjusted net investment income divided by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.
    Company Contact: Investor Relations Contact:
    Shelby E. Sherard Jody Burfening
    Chief Financial Officer Alliance Advisors IR
    (847) 859-3940 (212) 838-3777
    ssherard@fidusinv.com jburfening@allianceadvisors.com

    The MIL Network

  • MIL-OSI: AvePoint Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    First quarter SaaS revenue of $68.9 million, representing 34% year-over-year growth, 37% on a constant currency basis
    First quarter Total revenue of $93.1 million, representing 25% year-over-year growth, 27% on a constant currency basis
    Total ARR of $345.5 million, representing 26% year-over-year growth, 28% adjusted for FX

    JERSEY CITY, N.J., May 08, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the first quarter ended March 31, 2025. 

    “Highlighted by record growth in net new ARR and meaningful operating margin expansion, our first quarter results reflect our ability to efficiently address the intensifying convergence of data security, governance, and resilience challenges facing companies today,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Despite the fluid macroeconomic environment, organizations are increasingly implementing AI-driven data management strategies that demand platform solutions which balance security and innovation. Our team’s execution to start the year has us steadily advancing toward our vision of becoming the world’s leading data management software company and achieving our billion-dollar ARR target for 2029.”

    First Quarter 2025 Financial Highlights

    • Revenue: Total revenue was $93.1 million, up 25% from the first quarter of 2024. Within total revenue, SaaS revenue was $68.9 million, up 34% from the first quarter of 2024.
    • Gross Profit: GAAP gross profit was $69.2 million, compared to $54.1 million for the first quarter of 2024. Non-GAAP gross profit was $69.8 million, compared to $55.2 million for the first quarter of 2024. Non-GAAP gross margin was 75.0%, compared to 74.1% for the first quarter of 2024.
    • Operating Income/(Loss): GAAP operating income was $3.3 million, compared to a GAAP operating loss of $(3.2) million for the first quarter of 2024. Non-GAAP operating income was $13.4 million, compared to $6.6 million for the first quarter of 2024.
    • Cash, cash equivalents and short-term investments: $351.8 million as of March 31, 2025.
    • Cash from operations: For the three months ended March 31, 2025, the Company generated $0.5 million of cash from operations, compared to $7.8 million generated in the prior year period.

    First Quarter 2025 Key Performance Indicators and Recent Business Highlights

    • ARR as of March 31, 2025 was $345.5 million, up 26% year-over-year. Adjusted for FX, ARR grew 28% year-over-year.
    • Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 111%.
    • Completed the acquisition of Ydentic to provide Managed Service Providers (MSPs) with an AI-driven platform to manage, optimize, and secure clients’ IT environments.
    • Launched the next generation of AvePoint Elements to automate insights, secure data, and accelerate profitability and efficiency for MSPs building security-centric practices.
    • Released new data security solutions for Google, expanding the Company’s multi-cloud protection to empower organizations with intelligent risk identification, proactive threat monitoring, and incident response at scale to enhance customers’ cyber resilience and prevent data breaches.
    • Renewed the existing Share Repurchase Program for an additional three years, providing the authority to buy up to $150.0 million of the Company’s common stock.

    Financial Outlook
    The company’s current financial outlook for the second quarter and full year 2025 is below. The global nature of our business exposes us to fluctuations in foreign exchange rates, and in the first quarter we saw a modest currency tailwind from the weakening of the U.S. dollar. This weakening has continued in the second quarter, and the corresponding incremental FX tailwinds are reflected in our updated full-year guidance for all metrics. Additionally, the Company’s updated full-year guidance for revenue and non-GAAP operating income includes the respective first quarter outperformance relative to guidance.

    For the second quarter of 2025, the Company expects:

    • Total revenues of $95.3 million to $97.3 million, or year-over-year growth of 22% to 25%. On a constant currency basis, the Company expects revenue growth of 20% to 22%.
    • Non-GAAP operating income of $13.2 million to $14.2 million.

    For the full year 2025, the Company now expects:

    • Total ARR of $411.8 million to $417.8 million, or year-over-year growth of 26% to 28%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
    • Total revenues of $397.4 million to $405.4 million, or year-over-year growth of 20% to 23%. On a constant currency basis, the Company expects revenue growth of 18% to 20%.
    • Non-GAAP operating income of $61.4 million to $64.4 million.

    Quarterly Conference Call

    AvePoint will host a conference call today, May 8, 2025, to review its first quarter 2025 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 1630173. Investors can also join by webcast by visiting https://ir.avepoint.com/events. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

    About AvePoint

    Beyond Secure. AvePoint is the global leader in data security, governance, and resilience, going beyond traditional solutions to ensure a robust data foundation and enable organizations everywhere to collaborate with confidence. Over 25,000 customers worldwide rely on the AvePoint Confidence Platform to prepare, secure, and optimize their critical data across Microsoft, Google, Salesforce, and other collaboration environments. AvePoint’s global channel partner program includes approximately 5,000 managed service providers, value-added resellers, and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.

    Non-GAAP Financial Measures and Other Key Metrics

    To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. The company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

    Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

    Forward-Looking Statements
    This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar 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. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K. Copies of this and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. This filing identifies and addresses other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint,” “the Company,” “we,” “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

    Disclosure Information
    AvePoint uses the https://www.avepoint.com/ir website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

    Investor Contact
    AvePoint
    Jamie Arestia
    ir@avepoint.com
    (551) 220-5654

    Media Contact
    AvePoint
    Nicole Caci
    pr@avepoint.com
    (201) 201-8143

    AvePoint, Inc.
    Condensed Consolidated Statements of Income (Loss)
    (In thousands, except per share amounts)
    (Unaudited)
     
      Three Months Ended  
      March 31,  
      2025     2024  
    Revenue:              
    SaaS $ 68,942     $ 51,311  
    Term license and support   11,190       10,005  
    Services   10,937       10,481  
    Maintenance   1,995       2,737  
    Total revenue   93,064       74,534  
    Cost of revenue:              
    SaaS   12,537       9,770  
    Term license and support   411       416  
    Services   10,798       10,073  
    Maintenance   153       183  
    Total cost of revenue   23,899       20,442  
    Gross profit   69,165       54,092  
    Operating expenses:              
    Sales and marketing   34,522       29,939  
    General and administrative   18,667       16,868  
    Research and development   12,689       10,486  
    Total operating expenses   65,878       57,293  
    Income (loss) from operations   3,287       (3,201 )
    Other income, net   1,586       3,404  
    Income before income taxes   4,873       203  
    Income tax expense   1,307       2,157  
    Net income (loss) $ 3,566     $ (1,954 )
    Net income (loss) attributable to noncontrolling interest   126       (238 )
    Net income (loss) available to common stockholders $ 3,440     $ (1,716 )
    Net income (loss) per share:              
    Basic $ 0.02     $ (0.01 )
    Diluted $ 0.02     $ (0.01 )
    Weighted average shares outstanding:              
    Basic   197,924       181,495  
    Diluted   224,573       181,495  
     AvePoint, Inc.
    Condensed Consolidated Balance Sheets
    (In thousands, except par value)
    (Unaudited)
     
      March 31,     December 31,  
      2025     2024  
    Assets              
    Current assets:              
    Cash and cash equivalents $ 351,481     $ 290,735  
    Short-term investments   317       167  
    Accounts receivable, net   80,124       87,365  
    Prepaid expenses and other current assets   14,717       16,528  
    Total current assets   446,639       394,795  
    Property and equipment, net   5,961       5,289  
    Goodwill   36,774       17,715  
    Intangible assets, net   11,514       8,889  
    Operating lease right-of-use assets   17,813       15,954  
    Deferred contract costs   59,945       59,838  
    Other assets   20,202       16,575  
    Total assets $ 598,848     $ 519,055  
    Liabilities and stockholders’ equity              
    Current liabilities:              
    Accounts payable $ 2,293     $ 2,352  
    Accrued expenses and other current liabilities   56,154       76,135  
    Current portion of deferred revenue   149,760       144,468  
    Total current liabilities   208,207       222,955  
    Long-term operating lease liabilities   11,649       9,909  
    Long-term portion of deferred revenue   10,846       8,840  
    Other liabilities   6,693       6,403  
    Total liabilities   237,395       248,107  
    Commitments and contingencies              
    Stockholders’ equity              
    Common stock, $0.0001 par value; 1,000,000 shares authorized, 203,031 and 194,071 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively   20       19  
    Additional paid-in capital   873,269       779,007  
    Accumulated other comprehensive income   1,682       576  
    Accumulated deficit   (515,468 )     (510,448 )
    Noncontrolling interest   1,950       1,794  
    Total stockholders’ equity   361,453       270,948  
    Total liabilities and stockholders’ equity $ 598,848     $ 519,055  
    AvePoint, Inc.
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)
     
      Three Months Ended  
      March 31,  
      2025     2024  
    Operating activities              
    Net income (loss) $ 3,566     $ (1,954 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:              
    Depreciation and amortization   1,511       1,295  
    Operating lease right-of-use assets expense   1,847       1,420  
    Foreign currency remeasurement loss   540       580  
    Stock-based compensation   9,620       9,458  
    Deferred income taxes   (95 )     (72 )
    Other   1,064       (146 )
    Change in value of earn-out and warrant liabilities   (474 )     (1,490 )
    Changes in operating assets and liabilities:              
    Accounts receivable   9,198       10,933  
    Prepaid expenses and other current assets   1,895       1,718  
    Deferred contract costs and other assets   (2,637 )     4,447  
    Accounts payable, accrued expenses, other current liabilities, operating lease liabilities and other liabilities   (29,751 )     (14,293 )
    Deferred revenue   4,211       (4,140 )
    Net cash provided by operating activities   495       7,756  
    Investing activities              
    Maturities of investments         240  
    Purchases of investments         (389 )
    Capitalization of internal-use software   (452 )     (391 )
    Purchase of property and equipment   (1,514 )     (502 )
    Issuance of notes receivables         (500 )
    Cash paid in business combinations, net of cash acquired   (14,893 )      
    Net cash used in investing activities   (16,859 )     (1,542 )
    Financing activities              
    Purchase of common stock   (11,905 )     (13,743 )
    Proceeds from warrant exercises   87,344        
    Proceeds from stock option exercises   744       784  
    Repayments of finance leases   (2 )     (2 )
    Net cash provided by (used in) financing activities   76,181       (12,961 )
    Effect of exchange rates on cash   929       (926 )
    Net increase (decrease) in cash and cash equivalents   60,746       (7,673 )
    Cash and cash equivalents at beginning of period   290,735       223,162  
    Cash and cash equivalents at end of period $ 351,481     $ 215,489  
    Supplemental disclosures of cash flow information              
    Income taxes paid $ 901     $ 984  
    Unpaid purchase consideration transferred in connection with the business combination $ 5,499     $  
    Unpaid redemption of noncontrolling interest $     $ 5,926  
    AvePoint, Inc.
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
     
         
      Three Months Ended  
      March 31,  
      2025     2024  
    Non-GAAP operating income              
    GAAP operating income (loss) $ 3,287     $ (3,201 )
    Stock-based compensation expense   9,620       9,458  
    Amortization of acquired intangible assets   466       353  
    Non-GAAP operating income $ 13,373     $ 6,610  
    Non-GAAP operating margin   14.4 %     8.9 %
                   
                   
                   
    Non-GAAP gross profit              
    GAAP gross profit $ 69,165     $ 54,092  
    Stock-based compensation expense   342       871  
    Amortization of acquired intangible assets   333       241  
    Non-GAAP gross profit $ 69,840     $ 55,204  
    Non-GAAP gross margin   75.0 %     74.1 %
                   
    Non-GAAP sales and marketing              
    GAAP sales and marketing $ 34,522     $ 29,939  
    Stock-based compensation expense   (2,326 )     (2,284 )
    Amortization of acquired intangible assets   (133 )     (112 )
    Non-GAAP sales and marketing $ 32,063     $ 27,543  
    Non-GAAP sales and marketing as a % of revenue   34.5 %     37.0 %
                   
    Non-GAAP general and administrative              
    GAAP general and administrative $ 18,667     $ 16,868  
    Stock-based compensation expense   (4,754 )     (4,967 )
    Non-GAAP general and administrative $ 13,913     $ 11,901  
    Non-GAAP general and administrative as a % of revenue   14.9 %     16.0 %
                   
    Non-GAAP research and development              
    GAAP research and development $ 12,689     $ 10,486  
    Stock-based compensation expense   (2,198 )     (1,336 )
    Non-GAAP research and development $ 10,491     $ 9,150  
    Non-GAAP research and development as a % of revenue   11.3 %     12.3 %

    The MIL Network

  • MIL-OSI: EverCommerce Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    DENVER, May 08, 2025 (GLOBE NEWSWIRE) — EverCommerce Inc. (“EverCommerce” or the “Company”) (NASDAQ: EVCM), a leading service commerce platform, today announced financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue from continuing operations of $142.3 million, an increase of 3.2% compared to $137.9 million for the quarter ended March 31, 2024. Pro Forma Revenue, which excludes fitness, increased 7.4% to 142.3 million, compared to $132.4 million for the quarter ended March 31, 2024.
    • Subscription and transaction fees revenue from continuing operations of $137.8 million, an increase of 3.3% compared to $133.4 million for the quarter ended March 31, 2024. Pro Forma subscription and transaction fees revenue, which excludes fitness, increased 7.6% to $137.8 million, compared to $128.1 million for the quarter ended March 31, 2024.
    • Net income from continuing operations was $0.9 million, or $0.01 per basic and diluted share, for the quarter ended March 31, 2025, compared to net loss from continuing operations of $16.0 million, or $(0.09) per basic and diluted share, for the quarter ended March 31, 2024.
    • Adjusted EBITDA from continuing operations was $44.9 million for the quarter ended March 31, 2025, compared to $38.7 million for the quarter ended March 31, 2024.

    “EverCommerce’s first quarter results exceeded the top end of our guidance range for both Revenue and Adjusted EBITDA, driven by strong execution and continued active cost management,” said Eric Remer, EverCommerce’s Founder and CEO. “We continue to make solid progress with implementing our transformation and optimization initiatives, which include strategic investments in high margin areas of business such as payments monetization as well as artificial intelligence.”

    A reconciliation of GAAP to Non-GAAP measures has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures and Key Performance Metrics.”

    Share Repurchases

    On May 1, 2025, our Board of Directors approved a $50.0 million increase in the previously announced stock repurchase authorization and extended the authorization through December 31, 2026. The total authorization since the repurchase program began allows for the purchase up to $250.0 million in shares of the Company’s common stock.

    The Company repurchased and retired 1.1 million shares of common stock for approximately $11.2 million during the three months ended March 31, 2025. As of March 31, 2025, $21.6 million remained available under the Repurchase Program.

    Repurchases under the program may be made from time to time in the open market at prevailing market prices or in negotiated transactions off the market. Open market repurchases will be structured to occur within the pricing and volume requirements of Rule 10b-18. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of common stock and the program may be extended, modified, suspended or discontinued at any time at the Company’s discretion. The Company expects to fund repurchases with cash on hand.

    Business Outlook

    Based on information as of today, May 8, 2025, the Company is issuing the following financial guidance for the second quarter 2025 and full year 2025 from continuing operations, which excludes discontinued operations related to our marketing technology solutions.

    Second Quarter 2025:

    • Revenue is expected to be in the range of $144.5 million to $147.5 million.
    • Adjusted EBITDA is expected to be in the range of $39.5 million to $41.5 million.

    Full Year 2025:

    • Revenue is expected to be in the range of $581million to $601 million.
    • Adjusted EBITDA is expected to be in the range of $167.5 million to $175.5 million.

    A reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP measure, is not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and low visibility with respect to certain charges excluded from this non-GAAP measure; in particular, the measures and efforts of stock-based compensation expense specific to equity compensation awards that are directly impacted by unpredictable fluctuations in our stock price. It is important to note that these charges could be material to EverCommerce’s results computed in accordance with GAAP.

    Conference Call Information

    EverCommerce’s management team will hold a conference call to discuss our first quarter 2025 results and outlook today, May 8, 2025, at 5:00 p.m. ET. Please visit the “Investor Relations” page of the Company’s website (https://investors.evercomerce.com) for both telephonic and webcast access to this call as well as a copy of the presentation materials used on the call. An archive replay will be available following the conclusion of the call.

    Investor Contact
    Brad Korch
    SVP and Head of Investor Relations
    720-796-7664
    IR@evercommerce.com

    Media Contact
    Jeanne Trogan
    VP of Communications
    737-465-2897
    Press@evercommerce.com

    About EverCommerce

    EverCommerce (Nasdaq: EVCM) is a leading service commerce platform, providing vertically-tailored, integrated SaaS solutions that help more than 740,000 global service-based businesses accelerate growth, streamline operations, and increase retention. Its modern digital and mobile applications create predictable, informed, and convenient experiences between customers and their service professionals. With its EverPro, EverHealth, and EverWell brands specializing in Home, Health, and Wellness service industries, EverCommerce provides end-to-end business management software, embedded payment acceptance, marketing technology, and customer experience applications. Learn more at EverCommerce.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our future operations and financial results, cost savings initiatives, implementation of our transformation and optimization initiatives, any strategic alternatives involving our marketing technology solutions including an anticipated sale in 2025, our market opportunity, future stock repurchases, our potential for growth and our strategy. 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, our limited operating history and evolving business; our recent growth rates may not be sustainable or indicative of future growth; we have experienced net losses in the past and we may not achieve profitability in the future; we may continue to experience significant quarterly and annual fluctuations in our operating results due to a number of factors, which makes our future operating results difficult to predict; in order to support the growth of our business and our acquisition strategy, we may need to incur additional indebtedness or seek capital through new equity or debt financings; we may not be able to continue to expand our share of our existing vertical markets or expand into new vertical markets; we face intense competition in each of the industries in which we operate; the industries in which we operate are rapidly evolving and the market for technology-enabled services that empower SMBs is relatively immature and unproven; we are subject to economic and political risk, the business cycles of our clients and changes in the overall level of consumer and commercial spending, which could negatively impact our business, financial condition and results of operations; we are dependent on payment card networks, such as Visa and MasterCard, and payment processors, such as Worldpay and PayPal, and if we fail to comply with the applicable requirements of our payment networks or our payment processors, they can seek to fine us, suspend us or terminate our agreements and/or terminate our registrations through our bank sponsors; the inability to keep pace with rapid developments and changes in the electronic payments market or are unable to introduce, develop and market new and enhanced versions of our software solutions; real or perceived errors, failures or bugs in our solutions; unauthorized disclosure, destruction or modification of data, disruption of our software or services or cyber breaches; our use of artificial intelligence technologies and evolving regulatory framework governing the use of such technologies; our estimated total addressable market is subject to inherent challenges and uncertainties; failure to effectively develop and expand our sales and marketing capabilities; impairment in the value of our goodwill or intangible assets; our information technology systems and our third-party providers’ information technology systems, including Worldpay, PayPal and other payment processing partners, may fail or our third-party providers may discontinue providing their services or technology generally or to us specifically; our ability to improve our margin, in particular within Marketing Technology Solutions; the impact of a future pandemic, epidemic or outbreak of an infectious disease could impact, our business, financial condition and results of operations, as well as the business or operations of third parties with whom we conduct business; our success in achieving our objectives through acquisitions, divestitures or other strategic transactions; our revenues and profits generated through acquisitions may be less than anticipated, and we may fail to uncover all liabilities of acquisition targets; risks related to scrutiny on environmental sustainability and social initiatives; our ability to adequately protect or enforce our intellectual property and other proprietary rights; risk of patent, trademark and other intellectual property infringement claims; risks related to governmental regulation and other legal obligations, particularly related to privacy, data protection and information security, and our actual or perceived failure to comply with such obligations; risks related to our sponsor stockholders agreement and qualifying as a “controlled company” under the rules of The Nasdaq Stock Market; as well as the other factors described in our Annual Report on Form 10-K for the year ended December 31, 2024 and updated by our other filings with the SEC. These factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

    Non-GAAP Financial Measures and Key Performance Metrics

    EverCommerce has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). EverCommerce uses these non-GAAP financial measures internally in analyzing its financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing EverCommerce’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures. Unless otherwise indicated, all non-GAAP financial measures are presented on the basis of continuing operations only.

    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 EverCommerce’s consolidated financial statements prepared in accordance with GAAP. A reconciliation of EverCommerce’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

    Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, Pro Forma Subscription and Transaction Fees Revenue Growth Rate. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are key performance measures that our management uses to assess our consolidated operating performance from continuing operations over time. Management also uses these metrics for planning and forecasting purposes.

    Our year-over-year Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are calculated as though all acquisitions and divestitures completed as of the end of the latest period were completed as of the first day of the prior year period presented. In calculating Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate, we add the revenue from acquisitions for the reporting periods prior to the date of acquisition (including estimated purchase accounting adjustments) and exclude revenue from divestitures for the reporting periods prior to the date of divestiture, and then, calculate our revenue growth rate between the two reported periods. As a result, these metrics include pro forma revenue from businesses acquired and excludes revenue from businesses divested of during the period, including revenue generated during periods when we did not yet own the acquired businesses and excludes revenue prior to the divestiture of the business. In including such pre-acquisition revenue and excluding pre-divestiture revenue, these metrics allow us to measure the underlying revenue growth of our business as it stands as of the end of the respective period, which we believe provides insight into our then-current operations. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rate, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate do not represent organic revenue generated by our business as it stood at the beginning of the respective period. Pro Forma Revenue, Pro Forma Subscription and Transaction Fees Revenue, Pro Forma Revenue Growth Rates, and Pro Forma Subscription and Transaction Fees Revenue Growth Rate are not necessarily indicative of either future results of operations or actual results that might have been achieved had the acquisitions and divestitures been consummated on the first day of the prior year period presented. We believe that these metrics are useful to investors in analyzing our financial and operational performance period over period and evaluating the growth of our business, normalizing for the impact of acquisitions and divestitures. These metrics are particularly useful to management due to the number of acquired entities.

    Adjusted Gross Profit. Adjusted Gross Profit is a key performance measure that our management uses to assess our operational performance, as it represents the results of revenues and direct costs, which are key components of our operations. We believe that this non-GAAP financial measure is useful to investors and other interested parties in analyzing our financial performance because it reflects the gross profitability of our operations, and excludes the indirect costs associated with our sales and marketing, product development, general and administrative activities, and depreciation and amortization, and the impact of our financing methods and income taxes.

    Gross profit is calculated as total revenues less cost of revenues (exclusive of depreciation and amortization), amortization of developed technology, amortization of capitalized software and depreciation expense (allocated to cost of revenues). We calculate Adjusted Gross Profit as gross profit adjusted to exclude depreciation and amortization allocated to cost of revenues. Adjusted Gross Profit should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss) or profitability.

    Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA and Adjusted EBITDA margin are key performance measures that our management uses to assess our financial performance and is also used for internal planning and forecasting purposes. We believe that these non-GAAP financial measures are useful to investors and other interested parties in analyzing our financial performance because they provide a comparable overview of our operations across historical periods. In addition, we believe that providing Adjusted EBITDA, together with a reconciliation of net income (loss) to Adjusted EBITDA, helps investors make comparisons between our company and other companies that may have different capital structures, different tax rates, and/or different forms of employee compensation.

    Adjusted EBITDA and Adjusted EBITDA margin are used by our management team as additional measures of our performance for purposes of business decision-making, including managing expenditures, and evaluating potential acquisitions. Period-to-period comparisons of Adjusted EBITDA and Adjusted EBITDA margin help our management identify additional trends in our financial results that may not be shown solely by period-to-period comparisons of net income (loss) or income (loss) from continuing operations. In addition, we may use Adjusted EBITDA in the incentive compensation programs applicable to some of our employees. Our Management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items, and may not be directly comparable to similarly titled metrics used by other companies.

    We calculate Adjusted EBITDA as net loss adjusted to exclude interest and other expense, net, income tax expense (benefit), depreciation and amortization, other amortization, stock-based compensation, and transaction-related and other non-recurring or unusual costs. Other amortization includes amortization for capitalized contract acquisition costs. Transaction-related costs are specific deal-related costs such as legal fees, financial and tax due diligence, consulting and escrow fees. Other non-recurring or unusual costs are expenses such as impairment charges, (gains) losses from divestitures, system implementation costs, executive separation costs, severance expense related to planned restructuring activities, and costs associated with integration and transformational improvements. Transaction-related and other non-recurring or unusual costs are excluded as they are not representative of our underlying operating performance. Adjusted EBITDA should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss and other GAAP measures of income (loss).

    EverCommerce Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share and share amounts)
    (unaudited)
           
      March 31,   December 31,
      2025   2024
           
    Assets      
    Current assets:      
    Cash and cash equivalents $ 148,408     $ 135,782  
    Accounts receivable, net of allowance for expected credit losses of $2.1 million and $2.3 million at March 31, 2025 and December 31, 2024, respectively   32,356       31,090  
    Contract assets   11,115       12,839  
    Assets held for sale   46,435       11,422  
    Prepaid expenses and other current assets   30,231       27,181  
    Total current assets   268,545       218,314  
    Property and equipment, net   5,907       6,129  
    Capitalized software, net   43,573       41,595  
    Other non-current assets   34,912       36,127  
    Non-current assets held for sale         44,779  
    Intangible assets, net   197,477       211,172  
    Goodwill   863,686       863,152  
    Total assets   1,414,100       1,421,268  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable $ 7,533     $ 6,599  
    Accrued expenses and other   54,832       50,840  
    Deferred revenue   22,122       22,107  
    Customer deposits   11,857       11,382  
    Current maturities of long-term debt   5,500       5,500  
    Liabilities held for sale   15,626       14,298  
    Total current liabilities   117,470       110,726  
    Long-term debt, net of current maturities and deferred financing costs   521,364       522,442  
    Other non-current liabilities   35,697       36,301  
    Non-current liabilities held for sale         973  
    Total liabilities   674,531       670,442  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.00001 par value, 50,000,000 shares authorized and no shares issued or outstanding as of March 31, 2025 and December 31, 2024          
    Common stock, $0.00001 par value, 2,000,000,000 shares authorized and 183,034,613 and 183,725,236 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively   2       2  
    Accumulated other comprehensive loss   (13,841 )     (14,318 )
    Additional paid-in capital   1,422,185       1,426,206  
    Accumulated deficit   (668,777 )     (661,064 )
    Total stockholders’ equity   739,569       750,826  
    Total liabilities and stockholders’ equity $ 1,414,100     $ 1,421,268  
                   
    EverCommerce Inc.
    Condensed Consolidated Statements of Operations and Comprehensive Loss
    (in thousands, except per share and share amounts)
    (unaudited)
       
      Three months ended
    March 31,
      2025   2024
           
    Revenues:      
    Subscription and transaction fees $ 137,779     $ 133,382  
    Other   4,494       4,470  
    Total revenues   142,273       137,852  
    Operating expenses:      
    Cost of revenues (exclusive of depreciation and amortization presented separately below)   31,188       31,501  
    Sales and marketing   28,783       27,564  
    Product development   19,963       19,306  
    General and administrative   31,281       31,641  
    Depreciation and amortization   16,768       20,904  
    Loss on held for sale and impairments   85       11,232  
    Total operating expenses   128,068       142,148  
    Operating income (loss)   14,205       (4,296 )
    Interest and other expense, net   (12,759 )     (5,791 )
    Net income (loss) from continuing operations before income tax expense   1,446       (10,087 )
    Income tax expense   (512 )     (5,923 )
    Net income (loss) from continuing operations   934       (16,010 )
    Loss from discontinued operations, net of income tax   (8,647 )     (314 )
    Net loss   (7,713 )     (16,324 )
    Other comprehensive loss:      
    Foreign currency translation gain (loss), net   477       (3,535 )
    Comprehensive loss $ (7,236 )   $ (19,859 )
           
    Basic net income (loss) per share attributable to common stockholders:      
    Continuing operations $ 0.01     $ (0.09 )
    Discontinued operations   (0.05 )      
    Total $ (0.04 )   $ (0.09 )
           
    Diluted net income (loss) per share attributable to common stockholders:      
    Continuing operations $ 0.01     $ (0.09 )
    Discontinued operations   (0.05 )      
    Total $ (0.04 )   $ (0.09 )
           
    Weighted-average shares of common stock outstanding used in computing net income (loss) per share:      
    Basic   183,467,698       186,635,095  
    Diluted   185,222,240       186,635,095  
                   
    EverCommerce Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
       
      Three months ended
    March 31,
      2025   2024
           
    Cash flows provided by operating activities:      
    Net loss $ (7,713 )   $ (16,324 )
    Adjustments to reconcile net loss to net cash provided by operating activities:      
    Depreciation and amortization   17,959       22,951  
    Stock-based compensation expense   6,940       5,576  
    Deferred taxes   (335 )     5,316  
    Amortization of deferred financing costs and non-cash interest   396       410  
    Loss on held for sale and impairments   9,518       11,231  
    Bad debt expense   832       1,010  
    Loss (gain) on interest rate swap valuation adjustments   3,856       (4,824 )
    Other non-cash items   1,270       216  
    Changes in operating assets and liabilities:      
    Accounts receivable, net   (3,123 )     (4,485 )
    Prepaid expenses and other current assets   (1,621 )     (3,087 )
    Other non-current assets   (340 )     93  
    Accounts payable   455       (233 )
    Accrued expenses and other   3,973       (6,094 )
    Deferred revenue   1,616       2,401  
    Other non-current liabilities   (3,005 )     (860 )
    Net cash provided by operating activities   30,678       13,297  
    Cash flows used in investing activities:      
    Purchases of property and equipment   (493 )     (402 )
    Capitalization of software costs   (5,065 )     (4,432 )
    Proceeds from disposition of fitness solutions, net of transaction costs, cash and restricted cash   (85 )     1,228  
    Net cash used in investing activities   (5,643 )     (3,606 )
    Cash flows used in financing activities:      
    Payments on long-term debt   (1,375 )     (1,375 )
    Exercise of stock options   1,385       1,072  
    Employee taxes paid for RSU withholdings   (1,182 )      
    Repurchase and retirement of common stock   (11,095 )     (12,068 )
    Net cash used in financing activities   (12,267 )     (12,371 )
    Effect of foreign currency exchange rate changes on cash   (142 )     (593 )
    Net increase (decrease) in cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale   12,626       (3,273 )
    Cash, cash equivalents and restricted cash, including cash and restricted cash classified as held for sale:      
    Beginning of period   135,782       96,179  
    End of period $ 148,408     $ 92,906  
           
    Supplemental disclosures of cash flow information:    
    Cash paid for interest $ 9,088     $ 11,095  
    Cash paid for income taxes $ 2,531     $ 1,654  
                   
    EverCommerce Inc.
    Non-GAAP Financial Measures and Key Performance Metrics
    (unaudited)
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Pro Forma Revenue:      
    Revenue $ 142,273     $ 137,852  
    Plus acquisition revenue / less disposition revenue (1)         (5,403 )
    Pro Forma Revenue $ 142,273     $ 132,449  
     (1) Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Revenue and Pro Forma Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Pro Forma Subscription and Transaction Fees Revenue:      
    Subscription and transaction fees revenue $ 137,779     $ 133,382  
    Plus acquisition revenue / less disposition revenue (1)         (5,325 )
    Pro Forma Subscription and Transaction Fees Revenue $ 137,779     $ 128,057  
    (1) Acquisition revenue includes the estimated revenue associated with Kickserv prior to the August 10, 2023 acquisition date while the disposition revenue adjustment excludes revenue associated with fitness solutions (see the Pro Forma Subscription and Transaction Revenue and Pro Forma Subscription and Transaction Revenue Growth Rate definition under Non-GAAP financial measures and Key Performance Metrics).
       
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Reconciliation from Gross Profit to Adjusted Gross Profit:      
    Gross profit from continuing operations $ 106,433     $ 100,884  
    Depreciation and amortization   4,652       5,467  
    Adjusted gross profit from continuing operations $ 111,085     $ 106,351  
                   
      Three months ended
    March 31,
      2025
      2024
      (in thousands)
           
    Reconciliation from Net loss to Adjusted EBITDA:      
    Net income (loss) from continuing operations $ 934     $ (16,010 )
    Adjusted to exclude the following:      
    Interest and other expense, net   12,759       5,791  
    Income tax expense   512       5,923  
    Depreciation and amortization   16,768       20,904  
    Other amortization   1,482       1,311  
    Stock-based compensation expense   6,755       5,410  
    Transaction-related and other non-recurring or unusual costs   5,735       15,321  
    Adjusted EBITDA from continuing operations $ 44,945     $ 38,650  
                   

    The MIL Network

  • MIL-OSI: LPL Financial Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Key Financial Results:

    • Net Income was $319 million, translating to diluted earnings per share (“EPS”) of $4.24, up 11% from a year ago
    • Adjusted EPS* increased 22% year-over-year to $5.15
      • Gross profit* increased 19% year-over-year to $1,273 million
      • Core G&A* increased 14% year-over-year to $413 million
      • Adjusted pre-tax income* increased 23% year-over-year to $509 million

    Key Business Results:

    • Total advisory and brokerage assets increased 25% year-over-year to $1.8 trillion
      • Advisory assets increased 23% year-over-year to $977 billion
      • Advisory assets as a percentage of total assets decreased to 54.5%, down from 55.0% a year ago
    • Total organic net new assets were $71 billion, representing 16% annualized growth
      • This included $27 billion of assets from Prudential Advisors (“Prudential”) and $16 billion of assets from Wintrust Investments, LLC and certain private client business at Great Lakes Advisors, LLC (collectively, “Wintrust”) that onboarded during the first quarter, as well as $0.7 billion of assets that off-boarded as part of the previously disclosed planned separation from misaligned large OSJs. Prior to these impacts, organic net new assets were $29 billion, translating to a 7% annualized growth rate
    • Recruited assets(1)were $39 billion, up 91% from a year ago
      • Recruited assets over the trailing twelve months were a record of $167 billion
    • Total client cash balances were $53 billion, a decrease of $2 billion sequentially and an increase of $7 billion year-over-year
      • Client cash balances as a percentage of total assets were 3.0%, down from 3.2% in the prior quarter and prior year

    Key Capital and Liquidity Results:

    • Corporate cash(2)was $621 million
    • Leverage ratio(3)was 1.82x
    • Share repurchases were $100 million and dividends paid were $22.4 million

    *See the Non-GAAP Financial Measures section and the endnotes to this release for further details about these non-GAAP financial measures

    Key Updates

    Large Institutions:

    • Prudential: Completed the onboarding of Prudential, with $67 billion of brokerage and advisory assets, of which $27 billion transitioned onto our platform in Q1
    • Wintrust: Onboarded Wintrust, with $16 billion of brokerage and advisory assets transitioning onto our platform in Q1
    • First Horizon Bank (“First Horizon”): In April 2025, announced a strategic relationship agreement with First Horizon to transition support of the broker-dealer and investment advisory services of First Horizon Advisors, Inc., to LPL’s Institution Services platform, expected to be completed in the second half of 2025. First Horizon supports approximately 110 financial advisors who collectively serve $16 billion of client assets

    M&A:

    • Commonwealth Financial Network (“Commonwealth”): Announced a definitive purchase agreement to acquire Commonwealth, a privately-held independent wealth management firm headquartered in Massachusetts. Commonwealth supports approximately 3,000 advisors in the U.S., managing $285 billion of brokerage and advisory assets. The Company expects to close the transaction in the second half of 2025, subject to receipt of regulatory approvals and other closing conditions. Conversion is expected to be completed in mid-2026
    • Atria Wealth Solutions, Inc. (“Atria”): On-track to complete the conversion in mid-2025
    • The Investment Center, Inc. (“The Investment Center”): Closed on the acquisition of The Investment Center, with $7 billion of brokerage and advisory assets
    • Liquidity & Succession: Deployed approximately $100 million of capital to close 10 deals in Q1, including one external practice

    Capital Management:

    • Common Stock Offering: In April 2025, issued $1.7 billion of common stock at a price of $320 per share. Net proceeds from the common stock offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth
    • Corporate Debt:
      • In February 2025, issued $1.25 billion of senior unsecured notes, including $750 million of 5.200% notes due 2030 and $500 million of 5.650% notes due 2035. Net proceeds from this offering were used to repay outstanding borrowings under the Company’s revolving credit facility
      • In April 2025, issued $1.50 billion of senior unsecured notes, including $500 million of 4.900% notes due 2028, $500 million of 5.150% notes due 2030 and $500 million of 5.750% notes due 2035. Net proceeds from this offering are expected to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth

    Core G&A:

    • Lowered the upper end of our 2025 Core G&A* outlook range by $15 million, resulting in an updated range of $1,730 million to $1,765 million. This includes $170 million to $180 million related to Prudential and Atria, but is prior to costs associated with Commonwealth

    SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) — LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”) today announced results for its first quarter ended March 31, 2025, reporting net income of $319 million, or $4.24 per share. This compares with $289 million, or $3.83 per share, in the first quarter of 2024 and $271 million, or $3.59 per share, in the prior quarter.

    “It’s been a strong start to the year for LPL,” said Rich Steinmeier, CEO. “We delivered another quarter of strong business performance, reported excellent financial results, and reached an agreement to acquire Commonwealth, significantly accelerating our progress toward our vision to be the best firm in wealth management.”

    “In the first quarter, we delivered solid business performance and financial results,” said Matt Audette, President and CFO. “We onboarded Prudential and Wintrust and are preparing to onboard First Horizon later this year. As a complement to our strong organic growth, we closed and onboarded the acquisition of The Investment Center in March, continue to prepare to onboard our Atria advisors, and lastly, entered into an agreement to acquire Commonwealth Financial Network. Looking ahead, our business momentum and financial strength position us well to continue delivering shareholder value.”

    Dividend Declaration

    The Company’s Board of Directors declared a $0.30 per share dividend to be paid on June 12, 2025 to all stockholders of record as of May 30, 2025.

    Conference Call and Additional Information

    The Company will hold a conference call to discuss its results at 5:00 p.m. ET on Thursday, May 8, 2025. The conference call will be accessible and available for replay at investor.lpl.com/events.

    Contacts

    Investor Relations
    investor.relations@lplfinancial.com

    Media Relations
    media.relations@lplfinancial.com

    About LPL Financial

    LPL Financial Holdings Inc. (Nasdaq: LPLA) is among the fastest growing wealth management firms in the U.S. As a leader in the financial advisor-mediated marketplace(4), LPL supports over 29,000 financial advisors and the wealth management practices of approximately 1,200 financial institutions, servicing and custodying approximately $1.8 trillion in brokerage and advisory assets on behalf of approximately 7 million Americans. The firm provides a wide range of advisor affiliation models, investment solutions, fintech tools and practice management services, ensuring that advisors and institutions have the flexibility to choose the business model, services, and technology resources they need to run thriving businesses. For further information about LPL, please visit www.lpl.com.

    Securities and advisory services offered through LPL Financial LLC (“LPL Financial”) or its affiliate LPL Enterprise, LLC (“LPL Enterprise”), both registered investment advisers and broker-dealers. Members FINRA/SIPC.

    Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial or LPL Enterprise.

    We routinely disclose information that may be important to shareholders in the “Investor Relations” or “Press Releases” section of our website.

    Forward-Looking Statements

    This press release contains statements regarding:

    • the expected closing of the Company’s acquisition of Commonwealth;
    • the use of proceeds from the issuance of common stock and senior notes to fund a portion of the cash consideration payable in connection with the acquisition of Commonwealth;
    • the amount and timing of the onboarding of acquired, recruited or transitioned brokerage and advisory assets, including Atria, Commonwealth, First Horizon and The Investment Center;
    • the Company’s future financial and operating results, growth, plans, priorities and business strategies, including forecasts and statements related to the Company’s ICA yield, service and fee revenue, transaction revenue, core G&A expense, promotional expense, interest expense and income, depreciation and amortization, leverage ratio (including plans to reduce leverage) and share repurchases; and
    • future capabilities, future advisor service experience, future investments and capital deployment, including share repurchase activity and dividends, if any, and long-term shareholder value.

    These and any other statements that are not related to present facts or current conditions, or that are not purely historical, constitute forward-looking statements. They reflect the Company’s expectations and objectives as of May 8, 2025 and are not guarantees that expectations or objectives expressed or implied will be achieved. The achievement of such expectations and objectives involves risks and uncertainties that may cause actual results, levels of activity or the timing of events to differ materially from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include:

    • the failure to satisfy the closing conditions applicable to the Company’s purchase agreement with Commonwealth, including regulatory approvals;
    • difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors, including the receipt and timing of regulatory approvals that may be required;
    • disruptions in the businesses of the Company and Commonwealth that could make it more difficult to maintain relationships with advisors and their clients;
    • the choice by clients of acquired or recruited advisors not to open brokerage and/or advisory accounts at the Company;
    • changes in general economic and financial market conditions, including retail investor sentiment;
    • changes in interest rates and fees payable by banks participating in the Company’s client cash programs, including the Company’s success in negotiating agreements with current or additional counterparties;
    • the Company’s strategy and success in managing client cash program fees;
    • fluctuations in the levels of advisory and brokerage assets, including net new assets, and the related impact on revenue;
    • effects of competition in the financial services industry and the success of the Company in attracting and retaining financial advisors and institutions, and their ability to provide financial products and services effectively;
    • whether retail investors served by newly-recruited advisors choose to move their respective assets to new accounts at the Company;
    • changes in the growth and profitability of the Company’s fee-based offerings and asset-based revenues;
    • the effect of current, pending and future legislation, regulation and regulatory actions, including disciplinary actions imposed by federal and state regulators and self-regulatory organizations;
    • the cost of defending, settling and remediating issues related to regulatory matters or legal proceedings, including civil monetary penalties or actual costs of reimbursing customers for losses in excess of our reserves or insurance;
    • changes made to the Company’s services and pricing, including in response to competitive developments and current, pending and future legislation, regulation and regulatory actions, and the effect that such changes may have on the Company’s gross profit streams and costs;
    • the execution of the Company’s capital management plans, including its compliance with the terms of the Company’s amended and restated credit agreement, the committed revolving credit facilities of the Company and LPL Financial, and the indentures governing the Company’s senior unsecured notes;
    • strategic acquisitions and investments, including pursuant to the Company’s Liquidity & Succession solution, and the effect that such acquisitions and investments may have on the Company’s capital management plans and liquidity;
    • the price, availability and trading volumes of shares of the Company’s common stock, which will affect the timing and size of future share repurchases by the Company, if any;
    • the execution of the Company’s plans and its success in realizing the synergies, expense savings, service improvements or efficiencies expected to result from its investments, initiatives and acquisitions, expense plans and technology initiatives;
    • whether advisors affiliated with Atria, Commonwealth, First Horizon, and The Investment Center will transition registration to the Company and whether assets reported as serviced by such financial advisors will translate into assets of the Company;
    • the performance of third-party service providers to which business processes have been transitioned;
    • the Company’s ability to control operating risks, information technology systems risks, cybersecurity risks and sourcing risks; and
    • the other factors set forth in the Company’s most recent Annual Report on Form 10-K, as may be amended or updated in the Company’s Quarterly Reports on Form 10-Q or other filings with the Securities and Exchange Commission. 

    Except as required by law, the Company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this earnings release, and you should not rely on statements contained herein as representing the Company’s view as of any date subsequent to the date of this press release.

    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data)
    (Unaudited)
             
      Three Months Ended   Three Months Ended  
      March 31, December 31,   March 31,  
        2025     2024 Change   2024 Change
    REVENUE          
    Advisory $ 1,689,245   $ 1,595,834 6 % $ 1,199,811 41 %
    Commission:          
    Sales-based   610,038     525,795 16 %   385,235 58 %
    Trailing   437,719     439,668 %   361,211 21 %
    Total commission   1,047,757     965,463 9 %   746,446 40 %
    Asset-based:          
    Client cash   392,031     378,816 3 %   352,382 11 %
    Other asset-based   303,210     290,962 4 %   248,339 22 %
    Total asset-based   695,241     669,778 4 %   600,721 16 %
    Service and fee   145,199     139,119 4 %   132,172 10 %
    Transaction   67,864     61,535 10 %   57,258 19 %
    Interest income, net   43,851     46,680 (6 %)   43,525 1 %
    Other   (19,150 )   33,942 n/m   52,660 n/m
    Total revenue   3,670,007     3,512,351 4 %   2,832,593 30 %
    EXPENSE          
    Advisory and commission   2,353,925     2,250,427 5 %   1,733,487 36 %
    Compensation and benefits   305,546     321,933 (5 %)   274,369 11 %
    Promotional   145,645     162,057 (10 %)   126,619 15 %
    Depreciation and amortization   92,356     92,032 %   67,158 38 %
    Interest expense on borrowings   85,862     81,979 5 %   60,082 43 %
    Occupancy and equipment   77,240     75,538 2 %   66,264 17 %
    Brokerage, clearing and exchange   44,138     34,789 27 %   30,532 45 %
    Amortization of other intangibles   43,521     42,614 2 %   29,552 47 %
    Professional services   36,326     32,055 13 %   13,279 174 %
    Communications and data processing   19,506     18,772 4 %   19,744 (1 %)
    Other   48,689     58,874 (17 %)   37,315 30 %
    Total expense   3,252,754     3,171,070 3 %   2,458,401 32 %
    INCOME BEFORE PROVISION FOR INCOME TAXES   417,253     341,281 22 %   374,192 12 %
    PROVISION FOR INCOME TAXES   98,680     70,532 40 %   85,428 16 %
    NET INCOME $ 318,573   $ 270,749 18 % $ 288,764 10 %
    EARNINGS PER SHARE          
    Earnings per share, basic $ 4.27   $ 3.62 18 % $ 3.87 10 %
    Earnings per share, diluted $ 4.24   $ 3.59 18 % $ 3.83 11 %
    Weighted-average shares outstanding, basic   74,600     74,785 %   74,562 %
    Weighted-average shares outstanding, diluted   75,112     75,337 %   75,463 %
                           
    LPL Financial Holdings Inc.
    Condensed Consolidated Statements of Financial Condition
    (In thousands, except share data)
    (Unaudited)
         
      March 31, 2025 December 31, 2024
    ASSETS
    Cash and equivalents $ 1,229,181   $ 967,079  
    Cash and equivalents segregated under federal or other regulations   1,513,037     1,597,249  
    Restricted cash   112,458     119,724  
    Receivables from clients, net   613,766     633,834  
    Receivables from brokers, dealers and clearing organizations   112,249     76,545  
    Advisor loans, net   2,468,033     2,281,088  
    Other receivables, net   939,411     902,777  
    Investment securities ($122,729 and $42,267 at fair value at March 31, 2025 and December 31, 2024, respectively)   138,007     57,481  
    Property and equipment, net   1,237,693     1,210,027  
    Goodwill   2,213,100     2,172,873  
    Other intangibles, net   1,570,558     1,482,988  
    Other assets   1,815,729     1,815,739  
    Total assets $ 13,963,222   $ 13,317,404  
    LIABILITIES AND STOCKHOLDERS’ EQUITY
    LIABILITIES:    
    Client payables $ 2,045,285   $ 1,898,665  
    Payables to brokers, dealers and clearing organizations   252,035     129,228  
    Accrued advisory and commission expenses payable   303,837     323,996  
    Corporate debt and other borrowings, net   5,686,678     5,494,724  
    Accounts payable and accrued liabilities   479,803     588,450  
    Other liabilities   2,071,801     1,951,739  
    Total liabilities   10,839,439     10,386,802  
    STOCKHOLDERS’ EQUITY:    
    Common stock, $0.001 par value; 600,000,000 shares authorized; 131,194,549 shares and 130,914,541 shares issued at March 31, 2025 and December 31, 2024, respectively   131     131  
    Additional paid-in capital   2,089,155     2,066,268  
    Treasury stock, at cost — 56,611,181 shares and 56,253,909 shares at March 31, 2025 and December 31, 2024, respectively   (4,331,582 )   (4,202,322 )
    Retained earnings   5,366,079     5,066,525  
    Total stockholders’ equity   3,123,783     2,930,602  
    Total liabilities and stockholders’ equity $ 13,963,222   $ 13,317,404  
                 

    LPL Financial Holdings Inc.
    Management’s Statements of Operations
    (In thousands, except per share data)
    (Unaudited)

    Certain information in this release is presented as reviewed by the Company’s management and includes information derived from the Company’s unaudited condensed consolidated statements of income, non-GAAP financial measures and operational and performance metrics. For information on non-GAAP financial measures, please see the section titled “Non-GAAP Financial Measures” in this release.

      Quarterly Results
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Gross Profit(5)          
    Advisory $ 1,689,245   $ 1,595,834   6 % $ 1,199,811   41 %
    Trailing commissions   437,719     439,668   %   361,211   21 %
    Sales-based commissions   610,038     525,795   16 %   385,235   58 %
    Advisory fees and commissions   2,737,002     2,561,297   7 %   1,946,257   41 %
    Production-based payout(6)   (2,374,368 )   (2,248,674 ) 6 %   (1,686,332 ) 41 %
    Advisory fees and commissions, net of payout   362,634     312,623   16 %   259,925   40 %
    Client cash(7)   408,224     397,001   3 %   373,408   9 %
    Other asset-based(8)   303,210     290,962   4 %   248,339   22 %
    Service and fee   145,199     139,119   4 %   132,172   10 %
    Transaction   67,864     61,535   10 %   57,258   19 %
    Interest income, net(9)   27,637     28,481   (3 %)   22,482   23 %
    Other revenue(10)   2,023     32,705   (94 %)   3,382   (40 %)
    Total net advisory fees and commissions and attachment revenue   1,316,791     1,262,426   4 %   1,096,966   20 %
    Brokerage, clearing and exchange expense   (44,138 )   (34,789 ) 27 %   (30,532 ) 45 %
    Gross Profit(5)   1,272,653     1,227,637   4 %   1,066,434   19 %
    G&A Expense          
    Core G&A(11)   413,069     421,894   (2 %)   363,513   14 %
    Regulatory charges   6,887     7,335   (6 %)   7,469   (8 %)
    Promotional (ongoing)(12)(13)   151,932     173,191   (12 %)   132,311   15 %
    Acquisition costs excluding interest(13)   43,407     37,261   16 %   9,524   n/m
    Employee share-based compensation   18,366     26,067   (30 %)   22,633   (19 %)
    Total G&A   633,661     665,748   (5 %)   535,450   18 %
    Loss on extinguishment of debt       3,983   (100 %)     %
    EBITDA(14)   638,992     557,906   15 %   530,984   20 %
    Depreciation and amortization   92,356     92,032   %   67,158   38 %
    Amortization of other intangibles   43,521     42,614   2 %   29,552   47 %
    Interest expense on borrowings(15)   80,725     81,979   (2 %)   60,082   34 %
    Acquisition costs – interest(13)   5,137       100 %     100 %
    INCOME BEFORE PROVISION FOR INCOME TAXES   417,253     341,281   22 %   374,192   12 %
    PROVISION FOR INCOME TAXES   98,680     70,532   40 %   85,428   16 %
    NET INCOME $ 318,573   $ 270,749   18 % $ 288,764   10 %
    Earnings per share, diluted $ 4.24   $ 3.59   18 % $ 3.83   11 %
    Weighted-average shares outstanding, diluted   75,112     75,337   %   75,463   %
    Adjusted EBITDA(14) $ 682,399   $ 584,783   17 % $ 540,508   26 %
    Adjusted pre-tax income(16) $ 509,318   $ 410,772   24 % $ 413,268   23 %
    Adjusted EPS(17) $ 5.15   $ 4.25   21 % $ 4.21   22 %
                               
    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
               
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Market Drivers          
    S&P 500 Index (end of period)   5,612     5,882   (5%)   5,254   7%
    Russell 2000 Index (end of period)   2,012     2,230   (10%)   2,125   (5%)
    Fed Funds daily effective rate (average bps)   433     466   (33bps)   533   (100bps)
               
    Advisory and Brokerage Assets(18)          
    Advisory assets $ 977.4   $ 957.0   2% $ 793.0   23%
    Brokerage assets   817.5     783.7   4%   647.9   26%
    Total Advisory and Brokerage Assets $ 1,794.9   $ 1,740.7   3% $ 1,440.9   25%
    Advisory as a % of Total Advisory and Brokerage Assets   54.5 %   55.0 % (50bps)   55.0 % (50bps)
               
    Assets by Platform          
    Corporate advisory assets(19) $ 699.1   $ 678.3   3% $ 537.6   30%
    Independent RIA advisory assets(19)   278.3     278.7   —%   255.4   9%
    Brokerage assets   817.5     783.7   4%   647.9   26%
    Total Advisory and Brokerage Assets $ 1,794.9   $ 1,740.7   3% $ 1,440.9   25%
               
    Centrally Managed Assets          
    Centrally managed assets(20) $ 164.4   $ 160.0   3% $ 121.7   35%
    Centrally Managed as a % of Total Advisory Assets   16.8 %   16.7 % 10bps   15.3 % 150bps
                           
    LPL Financial Holdings Inc.
    Operating Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
               
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Organic Net New Assets (NNA)(21)          
    Organic net new advisory assets $ 35.7   $ 49.3   n/m $ 16.2   n/m
    Organic net new brokerage assets   35.2     18.8   n/m   0.5   n/m
    Total Organic Net New Assets $ 70.9   $ 68.0   n/m $ 16.7   n/m
               
    Acquired Net New Assets(21)          
    Acquired net new advisory assets $ 1.9   $ 21.8   n/m $   n/m
    Acquired net new brokerage assets   6.0     67.5   n/m     n/m
    Total Acquired Net New Assets $ 7.9   $ 89.3   n/m $   n/m
               
    Total Net New Assets(21)          
    Net new advisory assets $ 37.6   $ 71.1   n/m $ 16.2   n/m
    Net new brokerage assets   41.2     86.2   n/m   0.5   n/m
    Total Net New Assets $ 78.8   $ 157.3   n/m $ 16.7   n/m
               
    Net brokerage to advisory conversions(22) $ 5.9   $ 4.8   n/m $ 3.6   n/m
    Organic advisory NNA annualized growth(23)   14.9 %   22.1 % n/m   8.8 % n/m
    Total organic NNA annualized growth(23)   16.3 %   17.1 % n/m   4.9 % n/m
               
    Net New Advisory Assets(21)          
    Corporate RIA net new advisory assets $ 31.7   $ 64.5   n/m $ 13.9   n/m
    Independent RIA net new advisory assets   5.9     6.6   n/m   2.3   n/m
    Total Net New Advisory Assets $ 37.6   $ 71.1   n/m $ 16.2   n/m
    Centrally managed net new advisory assets(21) $ 6.5   $ 24.9   n/m $ 3.6   n/m
               
    Net buy (sell) activity(24) $ 42.0   $ 38.3   n/m $ 37.8   n/m

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Client Cash Data
    (Dollars in thousands, except where noted)
    (Unaudited)
               
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Client Cash Balances (in billions)(25)          
    Insured cash account sweep $ 36.1   $ 38.3   (6%) $ 32.6   11%
    Deposit cash account sweep   10.7     10.7   —%   9.2   16%
    Total Bank Sweep   46.8     49.0   (4%)   41.8   12%
    Money market sweep   4.3     4.3   —%   2.4   79%
    Total Client Cash Sweep Held by Third Parties   51.1     53.3   (4%)   44.2   16%
    Client cash account (CCA)   1.9     1.8   6%   2.1   (10%)
    Total Client Cash Balances $ 53.1   $ 55.1   (4%) $ 46.3   15%
    Client Cash Balances as a % of Total Assets   3.0 %   3.2 % (20bps)   3.2 % (20bps)
                           

    Note: Totals may not foot due to rounding.

      Three Months Ended
      March 31, 2025 December 31, 2024 March 31, 2024
    Interest-Earnings Assets Average Balance
    (in billions)
    Revenue Net Yield (bps)(26) Average Balance
    (in billions)
    Revenue Net Yield (bps)(26) Average Balance
    (in billions)
    Revenue Net Yield (bps)(26)
    Insured cash account sweep $ 36.0 $ 299,618 337 $ 34.8 $ 292,661 335 $ 33.2 $ 266,792 323
    Deposit cash account sweep   10.2   89,728 356   9.8   83,879 340   8.9   83,978 378
    Total Bank Sweep   46.2   389,346 341   44.6   376,540 336   42.1   350,770 335
    Money market sweep   4.1   2,685 26   3.3   2,277 28   2.3   1,612 28
    Total Client Cash Held By Third Parties   50.4   392,031 316   47.9   378,817 315   44.4   352,382 319
    Client cash account (CCA)   1.8   16,193 368   1.8   18,184 407   1.8   21,026 467
    Total Client Cash   52.2   408,224 317   49.7   397,001 318   46.2   373,408 325
    Margin receivables   0.6   11,444 789   0.6   11,506 829   0.5   10,249 890
    Other interest revenue   1.3   16,193 512   1.3   16,975 524   0.9   12,233 535
    Total Client Cash and Interest Income, Net $ 54.0 $ 435,861 327 $ 51.6 $ 425,482 329 $ 47.6 $ 395,890 334
                                   

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Monthly Metrics
    (Dollars in billions, except where noted)
    (Unaudited)
               
      March 2025 February 2025 Change January 2025 December 2024
    Advisory and Brokerage Assets(18)          
    Advisory assets $ 977.4 $ 995.0 (2%) $ 992.4 $ 957.0
    Brokerage assets   817.5   828.2 (1%)   819.4   783.7
    Total Advisory and Brokerage Assets $ 1,794.9 $ 1,823.1 (2%) $ 1,811.8 $ 1,740.7
               
    Organic Net New Assets (NNA)(21)          
    Organic net new advisory assets $ 12.7 $ 9.6 n/m $ 13.4 $ 12.5
       Organic net new brokerage assets   0.5   14.1 n/m   20.5   12.9
    Total Organic Net New Assets $ 13.1 $ 23.8 n/m $ 34.0 $ 25.5
               
    Acquired Net New Assets(21)          
       Acquired net new advisory assets $ 1.8 $ n/m $ 0.1 $
       Acquired net new brokerage assets   5.3   0.7 n/m   $ 0.2
    Total Acquired Net New Assets $ 7.1 $ 0.7 n/m $ 0.1 $ 0.3
               
    Total Net New Assets(21)          
    Net new advisory assets $ 14.5 $ 9.6 n/m $ 13.5 $ 12.6
    Net new brokerage assets   5.8   14.8 n/m   20.6   13.2
    Total Net New Assets $ 20.2 $ 24.5 n/m $ 34.1 $ 25.8
    Net brokerage to advisory conversions(22) $ 1.9 $ 1.9 n/m $ 2.1 $ 2.0
               
    Client Cash Balances(25)          
    Insured cash account sweep $ 36.1 $ 35.6 1% $ 36.2 $ 38.3
    Deposit cash account sweep   10.7   10.2 5%   10.0   10.7
    Total Bank Sweep   46.8   45.8 2%   46.3   49.0
    Money market sweep   4.3   4.0 8%   4.1   4.3
    Total Client Cash Sweep Held by Third Parties   51.1   49.8 3%   50.4   53.3
    Client cash account (CCA)   1.9   1.5 27%   1.8   1.8
    Total Client Cash Balances $ 53.1 $ 51.3 4% $ 52.2 $ 55.1
               
    Net buy (sell) activity(24) $ 13.2 $ 14.3 n/m $ 14.5 $ 13.5
               
    Market Drivers          
    S&P 500 Index (end of period)   5,612   5,955 (6%)   6,041   5,882
    Russell 2000 Index (end of period)   2,012   2,163 (7%)   2,288   2,230
    Fed Funds effective rate (average bps)   433   433 —bps   433   448
                       

    Note: Totals may not foot due to rounding.

    LPL Financial Holdings Inc.
    Financial Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
               
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Commission Revenue by Product          
    Annuities $ 615,594   $ 561,918   10% $ 436,473   41%
    Mutual funds   233,895     232,529   1%   186,540   25%
    Fixed income   61,553     59,332   4%   48,641   27%
    Equities   49,074     45,829   7%   35,451   38%
    Other   87,641     65,855   33%   39,341   123%
    Total commission revenue $ 1,047,757   $ 965,463   9% $ 746,446   40%
               
    Commission Revenue by Sales-based and Trailing      
    Sales-based commissions          
    Annuities $ 365,767   $ 314,591   16% $ 229,077   60%
    Mutual funds   55,607     52,908   5%   43,496   28%
    Fixed income   61,553     59,332   4%   48,641   27%
    Equities   49,074     45,829   7%   35,451   38%
    Other   78,037     53,135   47%   28,570   173%
    Total sales-based commissions $ 610,038   $ 525,795   16% $ 385,235   58%
    Trailing commissions          
    Annuities $ 249,827   $ 247,327   1% $ 207,396   20%
    Mutual funds   178,288     179,621   (1%)   143,044   25%
    Other   9,604     12,720   (24%)   10,771   (11%)
    Total trailing commissions $ 437,719   $ 439,668   —% $ 361,211   21%
    Total commission revenue $ 1,047,757   $ 965,463   9% $ 746,446   40%
               
    Payout Rate(6)   86.75 %   87.79 % (104bps)   86.64 % 11bps
                           
    LPL Financial Holdings Inc.
    Capital Management Measures
    (Dollars in thousands, except where noted)
    (Unaudited)
         
      Q1 2025 Q4 2024
    Cash and equivalents $ 1,229,181   $ 967,079  
    Cash at regulated subsidiaries   (1,085,459 )   (884,779 )
    Excess cash at regulated subsidiaries per the Credit Agreement   476,908     397,138  
    Corporate Cash(2) $ 620,630   $ 479,438  
         
    Corporate Cash(2)    
    Cash at LPL Holdings, Inc. $ 104,080   $ 39,782  
    Excess cash at regulated subsidiaries per the Credit Agreement   476,908     397,138  
    Cash at non-regulated subsidiaries   39,642     42,518  
    Corporate Cash $ 620,630   $ 479,438  
         
    Leverage Ratio    
    Total debt $ 5,720,000   $ 5,517,000  
    Total corporate cash   620,630     479,438  
    Credit Agreement Net Debt $ 5,099,370   $ 5,037,562  
    Credit Agreement EBITDA (trailing twelve months)(27) $ 2,797,285   $ 2,665,033  
    Leverage Ratio 1.82x 1.89x
         
      March 31, 2025  
    Total Debt Balance Current Applicable
    Margin
    Interest Rate Maturity
    Revolving Credit Facility(a) $ ABR+37.5 bps / SOFR+147.5 bps 5.794 % 5/20/2029
    Broker-Dealer Revolving Credit Facility   SOFR+135 bps 5.760 % 5/19/2025
    Senior Unsecured Term Loan A   1,020,000 SOFR+147.5 bps(b) 5.798 % 12/5/2026
    Senior Unsecured Notes   500,000 5.700% Fixed 5.700 % 5/20/2027
    Senior Unsecured Notes   400,000 4.625% Fixed 4.625 % 11/15/2027
    Senior Unsecured Notes   750,000 6.750% Fixed 6.750 % 11/17/2028
    Senior Unsecured Notes   900,000 4.000% Fixed 4.000 % 3/15/2029
    Senior Unsecured Notes   750,000 5.200% Fixed 5.200 % 3/15/2030
    Senior Unsecured Notes   400,000 4.375% Fixed 4.375 % 5/15/2031
    Senior Unsecured Notes   500,000 6.000% Fixed 6.000 % 5/20/2034
    Senior Unsecured Notes   500,000 5.650% Fixed 5.650 % 3/15/2035
    Total / Weighted Average $ 5,720,000   5.376 %  
                 

    (a) Unsecured borrowing capacity of $2.25 billion at LPL Holdings, Inc.
    (b) The SOFR rate option is a one-month SOFR rate and subject to an interest rate floor of 0 bps.

    LPL Financial Holdings Inc.
    Key Business and Financial Metrics
    (Dollars in thousands, except where noted)
    (Unaudited)
               
      Q1 2025 Q4 2024 Change Q1 2024 Change
    Business Metrics          
    Advisors   29,493     28,888   2%   22,884   29%
    Net new advisors   605     5,202   (88%)   224   170%
    Annualized advisory fees and commissions per advisor(28) $ 375   $ 390   (4%) $ 342   10%
    Average total assets per advisor ($ in millions)(29) $ 60.9   $ 60.3   1% $ 63.0   (3%)
    Transition assistance loan amortization ($ in millions)(30) $ 81.8   $ 76.3   7% $ 58.3   40%
    Total client accounts (in millions)   10.4     10.0   4%   8.4   24%
    Recruited AUM ($ in billions)   38.6     78.7   (51%)   20.2   91%
               
    Employees(31)   9,118     9,051   1%   8,252   10%
               
    AUM retention rate (quarterly annualized)(32)   98.2 %   97.3 % 90bps   97.4 % 80bps
               
    Capital Management          
    Capital expenditures ($ in millions)(33) $ 119.5   $ 165.5   (28%) $ 121.0   (1%)
    Acquisitions, net ($ in millions)(34) $ 95.1   $ 847.9   (89%) $ 10.2   n/m
               
    Share repurchases ($ in millions) $ 100.0   $ 100.0   —% $ 70.0   43%
    Dividends ($ in millions)   22.4     22.5   —%   22.4   —%
    Total Capital Returned ($ in millions) $ 122.4   $ 122.5   —% $ 92.4   32%
                           

    Non-GAAP Financial Measures

    Management believes that presenting certain non-GAAP financial measures by excluding or including certain items can be helpful to investors and analysts who may wish to use this information to analyze the Company’s current performance, prospects and valuation. Management uses this non-GAAP information internally to evaluate operating performance and in formulating the budget for future periods. Management believes that the non-GAAP financial measures and metrics discussed below are appropriate for evaluating the performance of the Company.

    Adjusted EPS and Adjusted net income

    Adjusted EPS is defined as adjusted net income, a non-GAAP measure defined as net income plus the after-tax impact of amortization of other intangibles, acquisition costs, losses on extinguishment of debt, and amounts related to the departure of the Company’s former Chief Executive Officer, divided by the weighted average number of diluted shares outstanding for the applicable period. The Company presents adjusted net income and adjusted EPS because management believes that these metrics can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted net income and adjusted EPS are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income, earnings per diluted share or any other performance measure derived in accordance with GAAP. For a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS, please see the endnote disclosures in this release.

    Gross profit

    Gross profit is calculated as total revenue less advisory and commission expense; brokerage, clearing and exchange expense; and market fluctuations on employee deferred compensation. All other expense categories, including depreciation and amortization of property and equipment and amortization of other intangibles, are considered general and administrative in nature. Because the Company’s gross profit amounts do not include any depreciation and amortization expense, the Company considers gross profit to be a non-GAAP financial measure that may not be comparable to similar measures used by others in its industry. Management believes that gross profit can provide investors with useful insight into the Company’s core operating performance before indirect costs that are general and administrative in nature. For a calculation of gross profit, please see the endnote disclosures in this release.

    Core G&A

    Core G&A consists of total expense less the following expenses: advisory and commission; depreciation and amortization; interest expense on borrowings; brokerage, clearing and exchange; amortization of other intangibles; market fluctuations on employee deferred compensation; losses on extinguishment of debt; promotional (ongoing); employee share-based compensation; regulatory charges; and acquisition costs. Management presents core G&A because it believes core G&A reflects the corporate expense categories over which management can generally exercise a measure of control, compared with expense items over which management either cannot exercise control, such as advisory and commission, or which management views as promotional expense necessary to support advisor growth and retention, including conferences and transition assistance. Core G&A is not a measure of the Company’s total expense as calculated in accordance with GAAP. For a reconciliation of the Company’s total expense to core G&A, please see the endnote disclosures in this release. The Company does not provide an outlook for its total expense because it contains expense components, such as advisory and commission, that are market-driven and over which the Company cannot exercise control. Accordingly, a reconciliation of the Company’s outlook for total expense to an outlook for core G&A cannot be made available without unreasonable effort.

    EBITDA and Adjusted EBITDA

    EBITDA is defined as net income plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles. Adjusted EBITDA is defined as EBITDA, a non-GAAP measure, plus acquisition costs, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents EBITDA and adjusted EBITDA because management believes that they can be useful financial metrics in understanding the Company’s earnings from operations. EBITDA and adjusted EBITDA are not measures of the Company’s financial performance under GAAP and should not be considered as alternatives to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to EBITDA and adjusted EBITDA, please see the endnote disclosures in this release.

    Adjusted pre-tax income

    Adjusted pre-tax income is defined as income before provision for income taxes plus amortization of other intangibles, acquisition costs, amounts related to the departure of the Company’s former Chief Executive Officer, and losses on extinguishment of debt. The Company presents adjusted pre-tax income because management believes that it can provide investors with useful insight into the Company’s core operating performance by excluding non-cash items, acquisition costs, and certain other charges that management does not believe impact the Company’s ongoing operations. Adjusted pre-tax income is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to income before provision for income taxes or any other performance measure derived in accordance with GAAP. For a reconciliation of income before provision for income taxes to adjusted pre-tax income, please see the endnote disclosures in this release.

    Credit Agreement EBITDA

    Credit Agreement EBITDA is defined in, and calculated by management in accordance with, the Company’s amended and restated credit agreement (“Credit Agreement”) as “Consolidated EBITDA,” which is Consolidated Net Income (as defined in the Credit Agreement) plus interest expense on borrowings, provision for income taxes, depreciation and amortization, and amortization of other intangibles, and is further adjusted to exclude certain non-cash charges and other adjustments, and to include future expected cost savings, operating expense reductions or other synergies from certain transactions. The Company presents Credit Agreement EBITDA because management believes that it can be a useful financial metric in understanding the Company’s debt capacity and covenant compliance under its Credit Agreement. Credit Agreement EBITDA is not a measure of the Company’s financial performance under GAAP and should not be considered as an alternative to net income or any other performance measure derived in accordance with GAAP. For a reconciliation of net income to Credit Agreement EBITDA, please see the endnote disclosures in this release.

    Endnote Disclosures

    (1) Represents the estimated total advisory and brokerage assets expected to transition to the Company’s primary broker-dealer subsidiary, LPL Financial, in connection with advisors who transferred their licenses to LPL Financial during the period. The estimate is based on prior business reported by the advisors, which has not been independently and fully verified by LPL Financial. The actual transition of assets to LPL Financial generally occurs over several quarters and the actual amount transitioned may vary from the estimate.
    (2) Corporate cash, a component of cash and equivalents, is the sum of cash and equivalents from the following: (1) cash and equivalents held at LPL Holdings, Inc., (2) cash and equivalents held at regulated subsidiaries as defined by the Company’s Credit Agreement, which include LPL Financial, LPL Enterprise, LLC, The Private Trust Company, N.A. and certain of Atria’s introducing broker-dealer subsidiaries, in excess of the capital requirements of the Company’s Credit Agreement and (3) cash and equivalents held at non-regulated subsidiaries.
    (3) Compliance with the Leverage Ratio is only required under the Company’s revolving credit facility.
    (4) The Company was named a Top RIA custodian (Cerulli Associates, 2024 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (based on total revenues, Financial Planning magazine 1996-2022); and, among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research and Consulting Annual TPM Report). Fortune 500 as of June 2021.
    (5) Gross profit is a non-GAAP financial measure. Please see a description of gross profit under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a calculation of gross profit for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Total revenue(a) $ 3,670,007   $ 3,512,351   $ 2,832,593
      Advisory and commission expense   2,353,925     2,250,427     1,733,487
      Brokerage, clearing and exchange expense   44,138     34,789     30,532
      Employee deferred compensation   (709 )   (502 )   2,140
      Gross profit(a) $ 1,272,653   $ 1,227,637   $ 1,066,434
      (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.
         
    (6)  Production-based payout is a financial measure calculated as advisory and commission expense plus (less) advisor deferred compensation. The payout rate is calculated by dividing the production-based payout by total advisory and commission revenue. Below is a reconciliation of the Company’s advisory and commission expense to the production-based payout and a calculation of the payout rate for the periods presented (in thousands, except payout rate):
       
        Q1 2025 Q4 2024 Q1 2024
      Advisory and commission expense $ 2,353,925   $ 2,250,427   $ 1,733,487  
      Plus (Less): Advisor deferred compensation   20,443     (1,753 )   (47,155 )
      Production-based payout $ 2,374,368   $ 2,248,674   $ 1,686,332  
             
      Advisory and commission revenue $ 2,737,002   $ 2,561,297   $ 1,946,257  
             
      Payout rate   86.75 %   87.79 %   86.64 %
    (7) Below is a reconciliation of client cash revenue per Management’s Statements of Operations to client cash revenue, a component of asset-based revenue, on the Company’s condensed consolidated statements of income for the periods presented (in thousands):
       
             
        Q1 2025 Q4 2024 Q1 2024
      Client cash on Management’s Statement of Operations $ 408,224   $ 397,001   $ 373,408  
      Interest income on CCA balances segregated under federal or other regulations(9)   (16,193 )   (18,185 )   (21,026 )
      Client cash on Condensed Consolidated Statements of Income $ 392,031   $ 378,816   $ 352,382  
    (8)  Consists of revenue from the Company’s sponsorship programs with financial product manufacturers, omnibus processing and networking services but does not include fees from client cash programs.
    (9) Below is a reconciliation of interest income, net per Management’s Statements of Operations to interest income, net on the Company’s condensed consolidated statements of income for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Interest income, net on Management’s Statement of Operations $         27,637         $         28,481         $         22,482        
      Interest income on CCA balances segregated under federal or other regulations(7)           16,193                   18,185                   21,026        
      Interest income on deferred compensation           21                   14                   17        
      Interest income, net on Condensed Consolidated Statements of Income $         43,851         $         46,680         $         43,525        
    (10) Below is a reconciliation of other revenue per Management’s Statements of Operations to other revenue on the Company’s condensed consolidated statements of income for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Other revenue on Management’s Statement of Operations(a) $ 2,023   $ 32,705   $ 3.382  
      Interest income on deferred compensation   (21 )   (14 )   (17 )
      Deferred compensation   (21,152 )   1,251     49,295  
      Other revenue on Condensed Consolidated Statements of Income $ (19,150 ) $ 33,942   $ 52,660  
      (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards.
         
    (11) Core G&A is a non-GAAP financial measure. Please see a description of core G&A under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of the Company’s total expense to core G&A for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Core G&A Reconciliation      
      Total expense $ 3,252,754   $ 3,171,070   $ 2,458,401  
      Advisory and commission   (2,353,925 )   (2,250,427 )   (1,733,487 )
      Depreciation and amortization   (92,356 )   (92,032 )   (67,158 )
      Interest expense on borrowings(15)   (85,862 )   (81,979 )   (60,082 )
      Brokerage, clearing and exchange   (44,138 )   (34,789 )   (30,532 )
      Amortization of other intangibles   (43,521 )   (42,614 )   (29,552 )
      Employee deferred compensation   709     502     (2,140 )
      Loss on extinguishment of debt       (3,983 )   (— )
      Total G&A   633,661     665,748     535,450  
      Promotional (ongoing)(12)(13)   (151,932 )   (173,191 )   (132,311 )
      Acquisition costs excluding interest(13)   (43,407 )   (37,261 )   (9,524 )
      Employee share-based compensation   (18,366 )   (26,067 )   (22,633 )
      Regulatory charges   (6,887 )   (7,335 )   (7,469 )
      Core G&A $ 413,069   $ 421,894   $ 363,513  
    (12) Promotional (ongoing) includes $14.8 million, $13.4 million and $8.0 million for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, of support costs related to full-time employees that are classified within Compensation and benefits expense in the condensed consolidated statements of income and excludes costs that have been incurred as part of acquisitions that have been classified within acquisition costs.
    (13) Acquisition costs include the costs to setup, onboard and integrate acquired entities and other costs that were incurred as a result of the acquisitions. The below table summarizes the primary components of acquisition costs for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Acquisition costs      
      Fair value mark on contingent consideration(35) $ 6,594 $ 11,249 $
      Compensation and benefits   17,417   15,950   3,850
      Professional services   6,145   7,357   3,246
      Promotional(12)   8,538   2,235   2,268
      Interest(15)   5,137    
      Other   4,713   470   160
      Acquisition costs $ 48,544 $ 37,261 $ 9,524
    (14) EBITDA and adjusted EBITDA are non-GAAP financial measures. Please see a description of EBITDA and adjusted EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      EBITDA and adjusted EBITDA Reconciliation      
      Net income $ 318,573 $ 270,749   $ 288,764
      Interest expense on borrowings(15)   85,862   81,979     60,082
      Provision for income taxes   98,680   70,532     85,428
      Depreciation and amortization   92,356   92,032     67,158
      Amortization of other intangibles   43,521   42,614     29,552
      EBITDA $ 638,992 $ 557,906   $ 530,984
      Acquisition costs excluding interest(13)   43,407   37,261     9,524
      Departure of former Chief Executive Officer(a)     (14,367 )  
      Loss on extinguishment of debt     3,983    
      Adjusted EBITDA $ 682,399 $ 584,783   $ 540,508
      (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
         
    (15) Below is a reconciliation of interest expense on borrowings per Management’s Statements of Operations to interest expense on borrowings on the Company’s condensed consolidated statements of income for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Interest expense on borrowings on Management’s Statement of Operations $ 80,725 $ 81,979 $ 60,082
      Cost of debt issuance related to Commonwealth acquisition(13)   5,137    
      Interest expense on borrowings on Condensed Consolidated Statements of Income $ 85,862 $ 81,979 $ 60,082
    (16) Adjusted pre-tax income is a non-GAAP financial measure. Please see a description of adjusted pre-tax income under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of income before provision for income taxes to adjusted pre-tax income for the periods presented (in thousands):
       
        Q1 2025 Q4 2024 Q1 2024
      Income before provision for income taxes $ 417,253 $ 341,281   $ 374,192
      Amortization of other intangibles   43,521   42,614     29,552
      Acquisition costs(13)   48,544   37,261     9,524
      Departure of former Chief Executive Officer(a)     (14,367 )  
      Loss on extinguishment of debt     3,983    
      Adjusted pre-tax income $ 509,318 $ 410,772   $ 413,268
      (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
         
    (17) Adjusted net income and adjusted EPS are non-GAAP financial measures. Please see a description of adjusted net income and adjusted EPS under the “Non-GAAP Financial Measures” section of this release for additional information. Below is a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted EPS for the periods presented (in thousands, except per share data):
       
        Q1 2025 Q4 2024 Q1 2024
        Amount Per Share Amount Per Share Amount Per Share
      Net income / earnings per diluted share $ 318,573   $ 4.24   $ 270,749   $ 3.59   $ 288,764   $ 3.83  
      Amortization of other intangibles   43,521     0.58     42,614     0.57     29,552     0.39  
      Acquisition costs(13)   48,544     0.65     37,261     0.49     9,524     0.13  
      Departure of former Chief Executive Officer(a)           (14,367 )   (0.19 )        
      Loss on extinguishment of debt           3,983     0.05          
      Tax benefit   (23,937 )   (0.32 )   (19,978 )   (0.27 )   (10,340 )   (0.14 )
      Adjusted net income / adjusted EPS $ 386,701   $ 5.15   $ 320,262   $ 4.25   $ 317,500   $ 4.21  
      Diluted share count   75,112       75,337       75,463    
      Note: Totals may not foot due to rounding.            
      (a) The departure of the Company’s former Chief Executive Officer resulted in other income of $26.4 million during the three months ended December 31, 2024 related to the clawback of share-based compensation awards which was offset by share-based compensation expense of $12.0 million related to the modification of certain stock options that were retained as per the settlement agreement that the Company reached with the former Chief Executive Officer.
         
    (18) Consists of total advisory and brokerage assets under custody at the Company’s primary broker-dealer subsidiary, LPL Financial, as well as assets under custody of a third-party custodian related to Atria’s seven introducing broker-dealer subsidiaries.
    (19) Assets on the Company’s corporate advisory platform are serviced by investment advisor representatives of LPL Financial. Assets on the Company’s independent RIA advisory platform are serviced by investment advisor representatives of separate registered investment advisor firms rather than representatives of LPL Financial.
    (20) Consists of advisory assets in LPL Financial’s Model Wealth Portfolios, Optimum Market Portfolios, Personal Wealth Portfolios and Guided Wealth Portfolios platforms.
    (21) Consists of total client deposits into advisory or brokerage accounts less total client withdrawals from advisory or brokerage accounts, plus dividends, plus interest, minus advisory fees. The Company considers conversions from and to brokerage or advisory accounts as deposits and withdrawals, respectively.
    (22) Consists of existing custodied assets that converted from brokerage to advisory, less existing custodied assets that converted from advisory to brokerage.
    (23) Calculated as annualized current period organic net new assets divided by preceding period assets in their respective categories of advisory assets or total advisory and brokerage assets.
    (24) Represents the amount of securities purchased less the amount of securities sold in client accounts custodied with LPL Financial.
    (25) Client cash balances include CCA and exclude purchased money market funds. CCA balances include cash that clients have deposited with LPL Financial that is included in Client payables in the condensed consolidated balance sheets. The following table presents purchased money market funds for the periods presented (in billions):
       
        Q1 2025 Q4 2024 Q1 2024
      Purchased money market funds $ 44.7 $ 41.0 $ 32.6
    (26) Calculated by dividing revenue for the period by the average balance during the period.
    (27) EBITDA and Credit Agreement EBITDA are non-GAAP financial measures. Please see a description of EBITDA and Credit Agreement EBITDA under the “Non-GAAP Financial Measures” section of this release for additional information. Under the Credit Agreement, management calculates Credit Agreement EBITDA for a trailing twelve month period at the end of each fiscal quarter and in doing so may make further adjustments to prior quarters. Below are reconciliations of trailing twelve month net income to trailing twelve month EBITDA and Credit Agreement EBITDA for the periods presented (in thousands):
       
        Q1 2025 Q4 2024
      EBITDA and Credit Agreement EBITDA Reconciliations    
      Net income $         1,088,425         $         1,058,616        
      Interest expense on borrowings           299,961                   274,181        
      Provision for income taxes           347,528                   334,276        
      Depreciation and amortization           333,725                   308,527        
      Amortization of other intangibles           149,203                   135,234        
      EBITDA $         2,218,842         $         2,110,834        
      Credit Agreement Adjustments:    
      Acquisition costs and other(13)(36) $         249,870         $         223,614        
      Employee share-based compensation           84,690                   88,957        
      M&A accretion(37)           237,160                   235,048        
      Advisor share-based compensation           2,740                   2,597        
      Loss on extinguishment of debt           3,983                   3,983        
      Credit Agreement EBITDA $         2,797,285         $         2,665,033        
    (28) Calculated based on the average advisor count from the current period and prior periods.
    (29) Calculated based on the end of period total advisory and brokerage assets divided by end of period advisor count.
    (30) Represents amortization expense on forgivable loans for transition assistance to advisors and institutions.
    (31) During the first quarter of 2025, the Company updated its reporting of employees to include all full-time employees, including those reflected in Core G&A, promotional (ongoing) and advisory and commission expense. Prior period disclosures have been updated to reflect this change as applicable.
    (32) Reflects retention of total advisory and brokerage assets, calculated by deducting quarterly annualized attrition from total advisory and brokerage assets, divided by the prior quarter total advisory and brokerage assets.
    (33) Capital expenditures represent cash payments for property and equipment during the period.
    (34) Acquisitions, net represent cash paid for acquisitions, net of cash acquired during the period. Acquisitions, net for the three months ended March 31, 2025 excludes $70.2 million related to The Investment Center, which was prefunded on October 1, 2024 in conjunction with the close of the Atria acquisition, as well as cash inflows associated with working capital and other post-closing adjustments.
    (35) Represents a fair value adjustment to our contingent consideration liabilities that is reflected in other expense in the condensed consolidated statements of income.
    (36) Acquisition costs and other primarily include acquisition costs related to Atria, costs incurred related to the integration of the strategic relationship with Prudential, a $26.4 million reduction related to the departure of the Company’s former Chief Executive Officer and related clawback of share-based compensation awards, and an $18.0 million regulatory charge recognized during the three months ended September 30, 2024 reflecting the amount of a penalty proposed by the SEC as part of its civil investigation of the Company’s compliance with certain elements of the Company’s AML compliance program.
    (37) M&A accretion is an adjustment to reflect the annualized expected run rate EBITDA of an acquisition as permitted by the Credit Agreement for up to eight fiscal quarters following the close of such acquisition.

    The MIL Network