Category: Transport

MIL-OSI: American Coastal Insurance Corporation Reports Financial Results for its First Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

Company to Host Quarterly Conference Call at 5:00 P.M. ET on May 8, 2025

The information in this press release should be read in conjunction with an earnings presentation that is available on the Company’s website at investors.amcoastal.com/Presentations.

ST. PETERSBURG, Fla., May 08, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq: ACIC) (“ACIC” or the “Company”), a property and casualty insurance holding company, today reported its financial results for the first quarter ended March 31, 2025.


($ in thousands, except for per share data)	Three Months Ended
($ in thousands, except for per share data)	March 31,
		2025			2024		Change
Gross premiums written	$	197,852		$	184,601		7.2		%
Gross premiums earned		162,101			160,270		1.1
Net premiums earned		68,272			62,631		9.0
Total revenue		72,202			66,598		8.4
Income from continuing operations, net of tax		19,711			23,709		(16.9	)
Income (loss) from discontinued operations, net of tax		1,637			(110	)	NM
Consolidated net income	$	21,348		$	23,599		(9.5	)

Net income available to ACIC stockholders per diluted share
Continuing Operations	$	0.40		$	0.48		(16.7	)	%
Discontinued Operations		0.03			—		100.0		%
Total	$	0.43		$	0.48		(10.4	)	%

Reconciliation of net income to core income:
Plus: Non-cash amortization of intangible assets	$	609		$	812		(25.0	)	%
Less: Income (loss) from discontinued operations, net of tax		1,637			(110	)	NM
Less: Net realized gains on investment portfolio		1,382			—		100.0		%
Less: Unrealized losses on equity securities		(1,963	)		(50	)	NM
Less: Net tax impact⁽¹⁾		250			181		38.1
Core income⁽²⁾		20,651			24,390		(15.3	)
Core income per diluted share⁽²⁾	$	0.42		$	0.50		(16.0	)	%

Book value per share	$	5.40		$	4.27		26.5		%

NM = Not Meaningful
⁽¹⁾ In order to reconcile net income to the core income measures, the Company included the tax impact of all adjustments using the 21% federal corporate tax rate.
⁽²⁾ Core income and core income per diluted share, both of which are measures that are not based on generally accepted accounting principles (“GAAP”), are reconciled above to net income and net income per diluted share, respectively, the most directly comparable GAAP measures. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

Comments from Chief Executive Officer, B. Bradford Martz:

“We achieved our target combined ratio of 65% and delivered a return on equity over 30% in the first quarter of 2025. Strong account retention and selective new business production combined with our strategy to retain more of our business resulted in net premiums earned increasing 9% and net loss and loss adjustment expenses decreasing slightly compared to the same period last year. The Company remains focused on disciplined underwriting to support sustainable profitability and value creation for our shareholders throughout the cycle.”

Return on Equity and Core Return on Equity

The calculations of the Company’s return on equity and core return on equity are shown below.


($ in thousands)	Three Months Ended
($ in thousands)	March 31,
		2025			2024
Income from continuing operations, net of tax	$	19,711		$	23,709
Return on equity based on GAAP income from continuing operations, net of tax⁽¹⁾		32.7	%		68.0	%

Income (loss) from discontinued operations, net of tax	$	1,637		$	(110	)
Return on equity based on GAAP income (loss) from discontinued operations, net of tax⁽¹⁾		2.7	%	(0.3		)%

Consolidated net income	$	21,348		$	23,599
Return on equity based on GAAP net income⁽¹⁾		35.4	%		67.7	%

Core income	$	20,651		$	24,390
Core return on equity⁽¹⁾⁽²⁾		34.2	%		70.0	%

⁽¹⁾ Return on equity for the three months ended March 31, 2025 and 2024 is calculated on an annualized basis by dividing the net income or core income for the period by the average stockholders’ equity for the trailing twelve months.
⁽²⁾ Core return on equity, a measure that is not based on GAAP, is calculated based on core income, which is reconciled on the first page of this press release to net income, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

Combined Ratio and Underlying Ratio

The calculations of the Company’s combined ratio and underlying combined ratio are shown below.


($ in thousands)	Three Months Ended
($ in thousands)	March 31,
	2025		2024		Change
Consolidated
Loss ratio, net⁽¹⁾	16.7	%	19.9	%	(3.2	)	pts
Expense ratio, net⁽²⁾	48.3	%	33.3	%	15.0		pts
Combined ratio (CR)⁽³⁾	65.0	%	53.2	%	11.8		pts
Effect of current year catastrophe losses on CR	—	%	0.3	%	(0.3	)	pts
Effect of prior year (favorable) unfavorable development on CR	(3.2	)%	—	%	(3.2	)	pts
Underlying combined ratio⁽⁴⁾	68.2	%	52.9	%	15.3		pts

⁽¹⁾ Loss ratio, net is calculated as losses and loss adjustment expenses (“LAE”), net of losses ceded to reinsurers, relative to net premiums earned.
⁽²⁾ Expense ratio, net is calculated as the sum of all operating expenses, less interest expense relative to net premiums earned.
⁽³⁾ Combined ratio is the sum of the loss ratio, net and expense ratio, net.
⁽⁴⁾ Underlying combined ratio, a measure that is not based on GAAP, is reconciled above to the combined ratio, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

Combined Ratio Analysis

The calculations of the Company’s loss ratios and underlying loss ratios are shown below.


($ in thousands)	Three Months Ended
	March 31,
		2025			2024		Change
Loss and LAE	$	11,389		$	12,474		$	(1,085	)
% of Gross earned premiums		7.0	%		7.8	%		(0.8	)	pts
% of Net earned premiums		16.7	%		19.9	%		(3.2	)	pts
Less:
Current year catastrophe losses	$	—		$	211		$	(211	)
Prior year reserve (favorable) unfavorable development		(2,194	)		24			(2,218	)
Underlying loss and LAE⁽¹⁾	$	13,583		$	12,239		$	1,344
% of Gross earned premiums		8.4	%		7.6	%		0.8		pts
% of Net earned premiums		19.9	%		19.6	%		0.3		pts

⁽¹⁾ Underlying loss and LAE is a non-GAAP financial measure and is reconciled above to loss and LAE, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section, below.

The calculations of the Company’s expense ratios are shown below.


($ in thousands)	Three Months Ended
	March 31,
		2025			2024		Change
Policy acquisition costs	$	23,466		$	9,595		$	13,871
General and administrative		9,506			11,252			(1,746	)
Total Operating Expenses	$	32,972		$	20,847		$	12,125
% of Gross earned premiums		20.3	%		13.0	%		7.3	pts
% of Net earned premiums		48.3	%		33.3	%		15.0	pts

Quarter to Date Financial Results

Net income attributable to the Company for the quarter ended March 31, 2025 was $21.3 million, or $0.43 per diluted share, compared to net income of $23.6 million, or $0.48 per diluted share, for the quarter ended March 31, 2024. Drivers of net income during the first quarter of 2025 included increased gross premiums earned and decreased ceded premiums earned, driving an overall increase in revenues. This increase in revenue was offset by increased policy acquisition costs quarter-over-quarter, partially offset by decreased losses and LAE incurred and general and administrative expenses. During the first quarter of 2025, the Company’s net income attributable to discontinued operations was $1.6 million, compared to a net loss of $110 thousand attributable to discontinued operations during the first quarter of 2024.

The Company’s total gross written premium increased by $13.3 million, or 7.2%, to $197.9 million for the quarter ended March 31, 2025, from $184.6 million for the quarter ended March 31, 2024. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums are shown in the table below.


($ in thousands)	Three Months Ended March 31,
	2025			2024		Change $			Change %
Direct Written and Assumed Premium
Direct premium	$	197,902		$	184,601	$	13,301		7.2	%
Assumed premium⁽¹⁾		(50	)		—		(50	)	100.0
Total commercial property gross written premium	$	197,852		$	184,601	$	13,251		7.2	%

⁽¹⁾ Assumed premium written for 2025 primarily included commercial property business assumed from unaffiliated insurers subsequently cancelled.

Loss and LAE decreased by $1.1 million, or 8.8%, to $11.4 million for the quarter ended March 31, 2025, from $12.5 million for the quarter ended March 31, 2024. Loss and LAE expense as a percentage of net earned premiums decreased 3.2 points to 16.7% for the quarter ended March 31, 2025, compared to 19.9% for the quarter ended March 31, 2024. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the quarter ended March 31, 2025, would have been 8.4%, an increase of 0.8 points from 7.6% for the quarter ended March 31, 2024.

Policy acquisition costs increased by $13.9 million, or 144.8%, to $23.5 million for the quarter ended March 31, 2025, from $9.6 million for the quarter ended March 31, 2024, primarily due to a decrease in ceding commission income as the result of the Company’s decrease in quota share reinsurance coverage from 40% to 20%, effective June 1, 2024. External management fees also increased as a result of a one percent increase in the management fee agreed to in our contract renewal with AmRisc in 2024 and the increase in direct written premiums shown above.

General and administrative expenses decreased by $1.8 million, or 15.9%, to $9.5 million for the quarter ended March 31, 2025, from $11.3 million for the quarter ended March 31, 2024, driven by a non-recurring employee retention tax credit refund submitted to the Internal Revenue Service in 2022 and received during the first quarter of 2025. This non-recurring refund was previously disclosed in our Annual Report on Form 10-K, filed on March 10, 2025 as a gain contingency. In addition, external spending for audit, actuarial and legal services decreased quarter-over-quarter.

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the first quarter of 2025 and 2024 were as follows:


	2025		2024
Non-at-Risk	(0.3)	%	(0.2)	%
Quota Share	(16.2)	%	(31.5)	%
All Other	(41.4)	%	(29.3)	%
Total Ceding Ratio	(57.9)	%	(61.0)	%

Ceded premiums earned related to the Company’s catastrophe excess of loss contracts increased year-over-year, driven by a decrease in quota share reinsurance coverage from 40% to 20% effective June 1, 2024, which then required additional excess-of-loss coverage to be purchased by the Company. This decrease in quota share reinsurance coverage lowered the Company’s overall ceding ratio, as replacement excess of loss coverage was more cost effective than the 20% quota share contract that was not renewed.

Investment Portfolio Highlights

The Company’s cash, restricted cash and investment holdings increased from $540.8 million at December 31, 2024, to $568.8 million at March 31, 2025. This increase was driven by positive cash flows from operations. The Company’s cash and investment holdings consist of investments in U.S. government and agency securities, corporate debt and investment grade money market instruments. Fixed maturities represented approximately 84.3% of total investments at March 31, 2025, compared to 82.3% of total investments at December 31, 2024. The Company’s fixed maturity investments had a modified duration of 2.0 years at March 31, 2025, compared to 2.2 years at December 31, 2024.

Book Value Analysis

Book value per common share increased 10.4% from $4.89 at December 31, 2024, to $5.40 at March 31, 2025. Underlying book value per common share increased 8.8% from $5.21 at December 31, 2024, to $5.67 at March 31, 2025. An increase in the Company’s retained earnings as a result of net income for the quarter ended March 31, 2025, drove the increase in the Company’s book value per share. As shown in the table below, removing the effect of Accumulated Other Comprehensive Income (“AOCI”), caused by capital market conditions, increases the Company’s book value per common share at March 31, 2025.


($ in thousands, except for share and per share data)	March 31, 2025			December 31, 2024
	March 31, 2025			December 31, 2024
Book Value per Share
Numerator:
Common stockholders’ equity	$	260,880		$	235,660
Denominator:
Total Shares Outstanding		48,308,466			48,204,962
Book Value Per Common Share	$	5.40		$	4.89

Book Value per Share, Excluding the Impact of AOCI
Numerator:
Common stockholders’ equity	$	260,880		$	235,660
Less: Accumulated other comprehensive loss		(12,836	)		(15,666	)
Stockholders’ Equity, excluding AOCI	$	273,716		$	251,326
Denominator:
Total Shares Outstanding		48,308,466			48,204,962
Underlying Book Value Per Common Share⁽¹⁾	$	5.67		$	5.21

⁽¹⁾ Underlying book value per common share is a non-GAAP financial measure and is reconciled above to book value per common share, the most directly comparable GAAP measure. Additional information regarding non-GAAP financial measures presented in this press release can be found in the “Definitions of Non-GAAP Measures” section below.

Conference Call Details

About American Coastal Insurance Corporation

American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and Apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, “Exceptional” from Demotech, and maintains an “A-” insurance financial strength rating with a Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable outlook by Kroll.

Contact Information:

Alexander Baty

Vice President, Finance & Investor Relations, American Coastal Insurance Corp.

investorrelations@amcoastal.com

(727) 425-8076

Karin Daly

Investor Relations, Vice President, The Equity Group

kdaly@equityny.com

(212) 836-9623

Definitions of Non-GAAP Measures

The Company believes that investors’ understanding of ACIC’s performance is enhanced by the Company’s disclosure of the following non-GAAP measures. The Company’s methods for calculating these measures may differ from those used by other companies and therefore comparability may be limited.

Net income (loss) excluding the effects of amortization of intangible assets, income (loss) from discontinued operations, realized gains (losses) and unrealized gains (losses) on equity securities, net of tax (core income (loss)) is a non-GAAP measure that is computed by adding amortization, net of tax, to net income (loss) and subtracting income (loss) from discontinued operations, net of tax, realized gains (losses) on the Company’s investment portfolio, net of tax, and unrealized gains (losses) on the Company’s equity securities, net of tax, from net income (loss). Amortization expense is related to the amortization of intangible assets acquired, including goodwill, through mergers and, therefore, the expense does not arise through normal operations. Investment portfolio gains (losses) and unrealized equity security gains (losses) vary independent of the Company’s operations. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net income (loss). The core income (loss) measure should not be considered a substitute for net income (loss) and does not reflect the overall profitability of the Company’s business.

Core return on equity is a non-GAAP ratio calculated using non-GAAP measures. It is calculated by dividing the core income (loss) for the period by the average stockholders’ equity for the trailing twelve months (or one quarter of such average, in the case of quarterly periods). Core income (loss) is an after-tax non-GAAP measure that is calculated by excluding from net income (loss) the effect of income (loss) from discontinued operations, net of tax, non-cash amortization of intangible assets, including goodwill, unrealized gains or losses on the Company’s equity security investments and net realized gains or losses on the Company’s investment portfolio. In the opinion of the Company’s management, core income (loss), core income (loss) per share and core return on equity are meaningful indicators to investors of the Company’s underwriting and operating results, since the excluded items are not necessarily indicative of operating trends. Internally, the Company’s management uses core income (loss), core income (loss) per share and core return on equity to evaluate performance against historical results and establish financial targets on a consolidated basis. The most directly comparable GAAP measure is return on equity. The core return on equity measure should not be considered a substitute for return on equity and does not reflect the overall profitability of the Company’s business.

Combined ratio excluding the effects of current year catastrophe losses and prior year reserve development (underlying combined ratio) is a non-GAAP measure, that is computed by subtracting the effect of current year catastrophe losses and prior year development from the combined ratio. The Company believes that this ratio is useful to investors, and it is used by management to highlight the trends in the Company’s business that may be obscured by current year catastrophe losses and prior year development. Current year catastrophe losses cause the Company’s loss trends to vary significantly between periods as a result of their frequency of occurrence and severity and can have a significant impact on the combined ratio. Prior year development is caused by unexpected loss development on historical reserves. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is the combined ratio. The underlying combined ratio should not be considered as a substitute for the combined ratio and does not reflect the overall profitability of the Company’s business.

Net loss and LAE excluding the effects of current year catastrophe losses and prior year reserve development (underlying loss and LAE) is a non-GAAP measure that is computed by subtracting the effect of current year catastrophe losses and prior year reserve development from net loss and LAE. The Company uses underlying loss and LAE figures to analyze the Company’s loss trends that may be impacted by current year catastrophe losses and prior year development on the Company’s reserves. As discussed previously, these two items can have a significant impact on the Company’s loss trends in a given period. The Company believes it is useful for investors to evaluate these components both separately and in the aggregate when reviewing the Company’s performance. The most directly comparable GAAP measure is net loss and LAE. The underlying loss and LAE measure should not be considered a substitute for net loss and LAE and does not reflect the overall profitability of the Company’s business.

Book value per common share, excluding the impact of accumulated other comprehensive loss (underlying book value per common share), is a non-GAAP measure that is computed by dividing common stockholders’ equity after excluding accumulated other comprehensive income (loss), by total common shares outstanding plus dilutive potential common shares outstanding. The Company uses the trend in book value per common share, excluding the impact of accumulated other comprehensive income (loss), in conjunction with book value per common share to identify and analyze the change in net worth attributable to management efforts between periods. The Company believes this non-GAAP measure is useful to investors because it eliminates the effect of interest rates that can fluctuate significantly from period to period and are generally driven by economic and financial factors that are not influenced by management. Book value per common share is the most directly comparable GAAP measure. Book value per common share, excluding the impact of accumulated other comprehensive income (loss), should not be considered a substitute for book value per common share and does not reflect the recorded net worth of the Company’s business.

Discontinued Operations

On May 9, 2024, the Company entered into the Sale Agreement with Forza Insurance Holdings, LLC (“Forza”) in which ACIC agreed to sell and Forza agreed to acquire 100% of the issued and outstanding stock of the Company’s subsidiary, Interboro Insurance Company (“IIC”). Forza’s application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025 and closed on April 1, 2025. The Company received cash proceeds totaling approximately $26,500,000 from the sale. We do not anticipate that the gain or loss from the deconsolidation of IIC will be material to the financial statements.

Forward-Looking Statements

Statements made in this press release, or on the conference call identified above, and otherwise, that are not historical facts are “forward-looking statements”. The Company believes these statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions, or plans underlying the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those expressed in, or implied by, the forward-looking statements. These statements are made subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current facts and may be identified by their use of words such as “may,” “will,” “expect,” “endeavor,” “project,” “believe,” “plan,” “anticipate,” “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology. Factors that could cause actual results to differ materially may be found in the Company’s filings with the U.S. Securities and Exchange Commission, in the “Risk Factors” section in the Company’s most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.


Consolidated Statements of Comprehensive Income
In thousands, except share and per share amounts
	Three Months Ended
	March 31,
		2025			2024
REVENUE:
Gross premiums written	$	197,852		$	184,601
Change in gross unearned premiums		(35,751	)		(24,331	)
Gross premiums earned		162,101			160,270
Ceded premiums earned		(93,829	)		(97,639	)
Net premiums earned		68,272			62,631
Net investment income		4,511			4,017
Net realized investment gains		1,382			—
Net unrealized losses on equity securities		(1,963	)		(50	)
Total revenues	$	72,202		$	66,598
EXPENSES:
Losses and loss adjustment expenses		11,389			12,474
Policy acquisition costs		23,466			9,595
General and administrative expenses		9,506			11,252
Interest expense		2,717			2,719
Total expenses		47,078			36,040
Income before other income		25,124			30,558
Other income		1,070			810
Income before income taxes		26,194			31,368
Provision for income taxes		6,483			7,659
Income from continuing operations, net of tax	$	19,711		$	23,709
Income (loss) from discontinued operations, net of tax		1,637			(110	)
Net income	$	21,348		$	23,599
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments		4,212			(198	)
Reclassification adjustment for net realized investment gains		(1,382	)		—
Total comprehensive income	$	24,178		$	23,401

Weighted average shares outstanding
Basic		48,135,231			47,323,356
Diluted		49,564,721			48,969,550

Earnings available to ACIC common stockholders per share
Basic
Continuing operations	$	0.41		$	0.50
Discontinued operations		0.03			—
Total	$	0.44		$	0.50
Diluted
Continuing operations	$	0.40		$	0.48
Discontinued operations		0.03			—
Total	$	0.43		$	0.48

Dividends declared per share	$	—		$	—

Consolidated Balance Sheets
In thousands, except share amounts
	March 31, 2025			December 31, 2024
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale	$	282,960		$	281,001
Equity securities		29,210			36,794
Other investments		23,617			23,623
Total investments	$	335,787		$	341,418
Cash and cash equivalents		167,155			137,036
Restricted cash		65,885			62,357
Accrued investment income		2,990			2,964
Property and equipment, net		4,803			5,736
Premiums receivable, net		61,749			46,564
Reinsurance recoverable on paid and unpaid losses		202,391			263,419
Ceded unearned premiums		121,138			160,893
Goodwill		59,476			59,476
Deferred policy acquisition costs		46,342			40,282
Intangible assets, net		5,299			5,908
Other assets		12,147			16,816
Assets held for sale		74,484			73,243
Total Assets	$	1,159,646		$	1,216,112
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	256,289		$	322,087
Unearned premiums		321,105			285,354
Reinsurance payable on premiums		53,761			83,130
Accounts payable and accrued expenses		65,883			86,140
Operating lease liability		3,302			3,323
Notes payable, net		149,104			149,020
Other liabilities		986			1,456
Liabilities held for sale		48,336			49,942
Total Liabilities	$	898,766		$	980,452
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.0001 par value; 1,000,000 authorized; none issued or outstanding		—			—
Common stock, $0.0001 par value; 100,000,000 shares authorized; 48,520,549 and 48,417,045 issued, respectively; 48,308,466 and 48,204,962 outstanding, respectively		5			5
Additional paid-in capital		437,566			436,524
Treasury shares, at cost; 212,083 shares		(431	)		(431	)
Accumulated other comprehensive loss		(12,836	)		(15,666	)
Retained earnings (deficit)		(163,424	)		(184,772	)
Total Stockholders’ Equity	$	260,880		$	235,660
Total Liabilities and Stockholders’ Equity	$	1,159,646		$	1,216,112

The MIL Network –

May 9, 2025

MIL-OSI: CarGurus Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Marketplace revenue grew 13% YoY

Q1’25 Net Income of $39.0 million; Non-GAAP Adjusted EBITDA of $66.3 million, up 32% YoY

Repurchased $184.2 million worth of shares in Q1’25, representing 6% of our outstanding capital

BOSTON, May 08, 2025 (GLOBE NEWSWIRE) — CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, today announced financial results for the first quarter ended March 31, 2025.

“Our strong momentum in our Marketplace business continued into 2025, which grew 13% year-over-year,” said Jason Trevisan, Chief Executive Officer at CarGurus. “Across the company, we advanced our 2025 core drivers of value creation: expanding data-driven solutions that help dealers drive more profitable businesses, meeting the evolving needs of car shoppers with a more intelligent and seamless experience, and enabling customers to do more of the transaction online. As a result, this focused execution has translated into deeper consumer and dealer engagement and has expanded our market share.”

First Quarter Financial Highlights

	Three Months Ended
	March 31, 2025
	Results (in millions)			Variance from Prior Year
Revenue
Marketplace Revenue	$	212.2			13	%
Wholesale Revenue		7.7			(52	)%
Product Revenue		5.2			(58	)%
Total Revenue	$	225.2			4	%

Gross Profit	$	199.7			14	%
% Margin		89	%	762 bps

Operating Expenses	$	154.0			4	%

GAAP Net Income	$	39.0			83	%
% Margin		17	%	747 bps

Non-GAAP Adjusted EBITDA ⁽¹⁾	$	66.3			32	%
% Margin ⁽¹⁾		29	%	609 bps

Cash and Cash Equivalents at period end ⁽²⁾	$	172.9			(43	)%

^{(1) For more information regarding our use of non-GAAP Adjusted EBITDA and other non-GAAP financial measures, please see the reconciliations of GAAP financial measures to non-GAAP financial measures and the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}
^{(2) Variance represents the change from December 31, 2024.}

	Three Months Ended
	March 31, 2025
	Results			Variance from Prior Year
Key Performance Indicators ⁽¹⁾
U.S. Paying Dealers ⁽²⁾		25,153			3	%
International Paying Dealers ⁽²⁾		7,219			7	%
Total Paying Dealers ⁽²⁾		32,372			4	%

U.S. QARSD ⁽²⁾	$	7,369			10	%
International QARSD ⁽²⁾	$	2,073			10	%
Consolidated QARSD ⁽²⁾	$	6,173			9	%

Transactions		5,209			(49	)%

U.S. Average Monthly Unique Users (in millions) ⁽³⁾		35.0		N/A⁽⁴⁾
U.S. Average Monthly Sessions (in millions) ⁽³⁾		85.7		N/A⁽⁴⁾

International Average Monthly Unique Users (in millions) ⁽³⁾		10.6		N/A⁽⁴⁾
International Average Monthly Sessions (in millions) ⁽³⁾		22.2		N/A⁽⁴⁾

Segment Reporting *(in millions)*
U.S. Marketplace Segment Revenue	$	195.2			13	%
U.S. Marketplace Segment Operating Income	$	49.8			45	%
Digital Wholesale Segment Revenue	$	12.9			(55	)%
Digital Wholesale Segment Operating Loss	$	(5.8	)		44	%

^{(1) For more information regarding our use of Key Performance Indicators, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}
^{(2) Metrics presented as of March 31, 2025.}
^{(3) CarOffer website is excluded from the metrics presented for users and sessions.}
^{(4) As a result of the change from Google Universal Analytics (“Google Analytics”) to Google Analytics 4 (“GA4”) on July 1, 2024, we are unable to provide comparable monthly unique users or monthly sessions information for this period. For more information regarding the change in methodology for monthly unique users or monthly sessions, please see the section titled “Non-GAAP Financial Measures and Other Business Metrics” below.}

Second Quarter 2025 Guidance

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

Second Quarter 2025 Guidance Metrics	Values
Total Revenue	$222.0 million to $242.0 million
Marketplace Revenue	$219.5 million to $224.5 million
Non-GAAP Adjusted EBITDA	$71.5 million to $79.5 million
Non-GAAP Earnings per Share	$0.52 to $0.58

The second quarter 2025 non-GAAP earnings per share calculation assumes 100.0 million diluted weighted-average common shares outstanding.

The assumptions that are built into guidance for the second quarter 2025 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions. Guidance for the second quarter 2025 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers. Guidance also excludes any potential impact of future foreign currency exchange gains or losses. CarGurus may incur charges, realize gains or losses, or experience other events or circumstances in 2025 that could cause any of these assumptions to change and/or actual results to vary from this guidance.

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

Conference Call and Webcast Information

CarGurus will host a conference call and live webcast to discuss its first quarter 2025 financial results and business outlook at 5:00 p.m. Eastern Time today, May 8, 2025. To access the conference call, dial (877) 451-6152 for callers in the U.S. or Canada, or (201) 389-0879 for international callers. The webcast will be available live on the Investors section of CarGurus’ website at https://investors.cargurus.com.

An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time today, May 8, 2025, until 11:59 p.m. Eastern Time on May 22, 2025, by dialing (844) 512-2921 for callers in the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 13752230. In addition, an archived webcast will be available on the Investors section of CarGurus’ website at https://investors.cargurus.com.

About CarGurus

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

In addition to the U.S. marketplace, the Company operates online marketplaces under the CarGurus brand in Canada and the U.K., as well as independent online marketplace brands Autolist in the U.S. and PistonHeads in the U.K.

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

*Source: Similarweb, Traffic Report (Cars.com, Autotrader, TrueCar, CARFAX Listings
(defined as CARFAX Total visits minus Vehicle History Reports traffic)), Q1 2025, U.S.

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

Cautionary Language Concerning Forward-Looking Statements

This press release includes forward-looking statements. Other than statements of historical facts, all statements contained in this press release, including statements regarding our future financial and operating results; our second quarter 2025 financial and business performance, including guidance; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and efficiently; our capital allocation and investment strategy; the attractiveness and value proposition of our current offerings and other product opportunities; our ability to maintain existing and acquire new customers; addressable opportunities; our expectation that we will continue to invest in growth initiatives; our ability to quickly make transformations necessary for our business to achieve long-term goals; and our ability to overcome challenges facing the automotive industry ecosystem, including inventory supply problems, global supply chain challenges, including disruptions to pre-existing supply chains and vendor relations, changes to trade policies or tariff regulations, financial market volatility and disruption, increased interest rates, inflationary concerns, and other macroeconomic issues, including uncertain or volatile economic conditions in the U.S. and abroad, are forward-looking statements. The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “guidance,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “strive,” “target,” “will,” “would,” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. You should not rely upon forward-looking statements as predictions of future events.

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

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

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

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

	As of March 31, 2025			As of December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	172,862		$	304,193
Accounts receivable, net of allowance for doubtful accounts of $808 and $788, respectively		40,703			44,248
Inventory		810			338
Prepaid expenses, prepaid income taxes, and other current assets		21,107			27,868
Deferred contract costs		13,640			12,523
Restricted cash		2,848			2,036
Total current assets		251,970			391,206
Property and equipment, net		132,383			130,010
Intangible assets, net		11,318			11,767
Goodwill		46,714			46,167
Operating lease right-of-use assets		119,589			121,484
Deferred tax assets		110,050			106,672
Deferred contract costs, net of current portion		13,088			13,196
Other non-current assets		4,003			4,034
Total assets	$	689,115		$	824,536
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	29,891		$	26,410
Accrued expenses, accrued income taxes, and other current liabilities		32,240			35,975
Deferred revenue		22,407			21,661
Operating lease liabilities		9,969			9,005
Total current liabilities		94,507			93,051
Operating lease liabilities		185,463			183,739
Deferred tax liabilities		15			26
Other non–current liabilities		7,080			6,031
Total liabilities		287,065			282,847
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding		—			—
Class A common stock, $0.001 par value per share; 500,000,000 shares authorized; 84,334,642 and 89,002,571 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		84			89
Class B common stock, $0.001 par value per share; 100,000,000 shares authorized; 14,216,250 and 14,986,745 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		14			15
Additional paid-in capital		6,775			169,013
Retained earnings		396,486			375,119
Accumulated other comprehensive loss		(1,309	)		(2,547	)
Total stockholders’ equity		402,050			541,689
Total liabilities and stockholders’ equity	$	689,115		$	824,536

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

	Three Months Ended
	March 31,
	2025			2024
Revenue
Marketplace	$	212,235		$	187,219
Wholesale		7,747			16,125
Product		5,176			12,452
Total revenue		225,158			215,796
Cost of revenue ⁽¹⁾
Marketplace		14,248			14,385
Wholesale		6,170			14,224
Product		5,033			12,226
Total cost of revenue		25,451			40,835
Gross profit		199,707			174,961
Operating expenses
Sales and marketing		86,716			82,274
Product, technology, and development		36,250			35,545
General and administrative		26,780			28,066
Depreciation and amortization		4,206			2,792
Total operating expenses		153,952			148,677
Income from operations		45,755			26,284
Other income, net
Interest income		3,098			3,906
Other expense, net		(302	)		(505	)
Total other income, net		2,796			3,401
Income before income taxes		48,551			29,685
Provision for income taxes		9,506			8,384
Net income		39,045			21,301
Net income per share attributable to common stockholders:
Basic	$	0.38		$	0.20
Diluted	$	0.37		$	0.20
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders:
Basic		103,094,690			107,174,812
Diluted		105,068,046			108,632,159

^{(1) Includes depreciation and amortization expense for the three months ended March 31, 2025 and 2024 of $2,348 and $4,689, respectively.}

Unaudited Segment Revenue
(in thousands)

	Three Months Ended
	March 31,
	2025		2024
Segment Revenue:
U.S. Marketplace	$	195,228	$	172,988
Digital Wholesale		12,923		28,577
Other		17,007		14,231
Total	$	225,158	$	215,796

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

	Three Months Ended
	March 31,
	2025			2024
Segment Income (Loss) from Operations:
U.S. Marketplace	$	49,781		$	34,217
Digital Wholesale		(5,779	)		(10,340	)
Other		1,753			2,407
Total	$	45,755		$	26,284

Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)

	Three Months Ended
	March 31,
	2025			2024
Operating Activities
Net income	$	39,045		$	21,301
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		6,554			7,481
Currency (gain) loss on foreign denominated transactions		(165	)		384
Deferred taxes		(3,389	)		(9,052	)
Provision for doubtful accounts		424			290
Stock-based compensation expense		12,900			15,822
Amortization of deferred financing costs		129			129
Amortization of deferred contract costs		3,810			3,258
Changes in operating assets and liabilities:
Accounts receivable		3,070			(4,182	)
Inventory		(353	)		(319	)
Prepaid expenses, prepaid income taxes, and other assets		6,801			5,974
Deferred contract costs		(4,744	)		(3,326	)
Accounts payable		4,075			707
Accrued expenses, accrued income taxes, and other liabilities		(5,592	)		681
Deferred revenue		731			120
Lease obligations		4,583			12,696
Net cash provided by operating activities		67,879			51,964
Investing Activities
Purchases of property and equipment		(2,240	)		(28,665	)
Capitalization of website development costs		(5,391	)		(5,465	)
Purchases of short-term investments		—			(494	)
Sale of short-term investments		—			21,218
Advance payments to customers, net of collections		—			259
Net cash used in investing activities		(7,631	)		(13,147	)
Financing Activities
Proceeds from issuance of common stock upon exercise of stock options		394			11
Payment of withholding taxes on net share settlements of restricted stock units		(8,985	)		(5,115	)
Repurchases of common stock		(182,828	)		(77,442	)
Payment of finance lease obligations		(20	)		(18	)
Change in gross advance payments received from third-party transaction processor		(38	)		(474	)
Net cash used in financing activities		(191,477	)		(83,038	)
Impact of foreign currency on cash, cash equivalents, and restricted cash		710			(577	)
Net decrease in cash, cash equivalents, and restricted cash		(130,519	)		(44,798	)
Cash, cash equivalents, and restricted cash at beginning of period		306,229			293,926
Cash, cash equivalents, and restricted cash at end of period	$	175,710		$	249,128

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

	Three Months Ended
	March 31,
	2025			2024⁽¹⁾
GAAP net income	$	39,045		$	21,301
Stock-based compensation expense		12,900			15,822
Amortization of intangible assets		505			1,882
Transaction-related expenses		1,087			811
Income tax effects and adjustments		(5,174	)		(3,422	)
Non-GAAP net income	$	48,363		$	36,394
GAAP net income per share attributable to common stockholders:
Basic	$	0.38		$	0.20
Diluted	$	0.37		$	0.20
Non-GAAP net income per share attributable to common stockholders:
Basic	$	0.47		$	0.34
Diluted	$	0.46		$	0.34
Shares used in GAAP and Non-GAAP per share calculations
Basic		103,095			107,175
Diluted		105,068			108,632

^{(1) During the three months ended March 31, 2025, we identified an immaterial error to our non-GAAP net income calculation related to the income tax effects and adjustments and have updated the table to correct the calculation for the three months ended March 31, 2024. This resulted in an increase in the non-GAAP net income per share attributable to common stockholders from $0.32 per share to $0.34 per share.}

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

	Three Months Ended
	March 31,
	2025			2024
GAAP net income	$	39,045		$	21,301
Depreciation and amortization		6,554			7,481
Stock-based compensation expense		12,900			15,822
Transaction-related expenses		1,087			811
Other income, net		(2,796	)		(3,401	)
Provision for income taxes		9,506			8,384
Non-GAAP adjusted EBITDA	$	66,296		$	50,398

GAAP net income margin		17	%		10	%
Non-GAAP adjusted EBITDA margin		29	%		23	%

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

	Three Months Ended
	March 31,
	2025			2024
Revenue	$	225,158		$	215,796
Cost of revenue		25,451			40,835
GAAP gross profit		199,707			174,961
Stock-based compensation expense included in Cost of revenue		60			231
Amortization of intangible assets included in Cost of revenue		—			875
Transaction-related expenses included in Cost of revenue		269			92
Non-GAAP gross profit	$	200,036		$	176,159

GAAP gross profit margin		89	%		81	%
Non-GAAP gross profit margin		89	%		82	%

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

	Three Months Ended March 31, 2025
	GAAP expense		Stock-based compensation expense			Amortization of intangible assets			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	25,451	$	(60	)	$	—		$	(269	)	$	25,122
Sales and marketing		86,716		(2,833	)		—			(491	)		83,392
Product, technology, and development		36,250		(5,565	)		—			(151	)		30,534
General and administrative		26,780		(4,442	)		—			(176	)		22,162
Depreciation & amortization		4,206		—			(505	)		—			3,701
Operating expenses⁽¹⁾	$	153,952	$	(12,840	)	$	(505	)	$	(818	)	$	139,789
Total cost of revenue and operating expenses	$	179,403	$	(12,900	)	$	(505	)	$	(1,087	)	$	164,911

	Three Months Ended March 31, 2024
	GAAP expense		Stock-based compensation expense			Amortization of intangible assets			Transaction-related expenses			Non-GAAP expense
Cost of revenue	$	40,835	$	(231	)	$	(875	)	$	(92	)	$	39,637
Sales and marketing		82,274		(2,874	)		—			(394	)		79,006
Product, technology, and development		35,545		(5,977	)		—			(1	)		29,567
General and administrative		28,066		(6,740	)		—			(324	)		21,002
Depreciation & amortization		2,792		—			(1,007	)		—			1,785
Operating expenses⁽¹⁾	$	148,677	$	(15,591	)	$	(1,007	)	$	(719	)	$	131,360
Total cost of revenue and operating expenses	$	189,512	$	(15,822	)	$	(1,882	)	$	(811	)	$	170,997

^{(1) Operating expenses include sales and marketing, product, technology, and development, general and administrative, and depreciation & amortization.}

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

	Three Months Ended
	March 31,
	2025			2024
GAAP net cash and cash equivalents provided by operating activities	$	67,879		$	51,964
Purchases of property and equipment		(2,240	)		(28,665	)
Capitalization of website development costs		(5,391	)		(5,465	)
Non-GAAP free cash flow	$	60,248		$	17,834

Non-GAAP Financial Measures and Other Business Metrics

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

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

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

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

We define Adjusted EBITDA as net income, adjusted to exclude: depreciation and amortization, stock-based compensation expense, transaction-related expenses, other income, net, and provision for income taxes.

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

We have presented Adjusted EBITDA and Adjusted EBITDA margin because they are key measures used by our management and Board of Directors to understand and evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. We believe Adjusted EBITDA helps identify underlying trends in our business that could otherwise be masked by the effect of the expenses that we exclude. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision making.

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

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

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

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

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

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

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

The MIL Network –

May 9, 2025

MIL-OSI: Sprout Social Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

CHICAGO, May 08, 2025 (GLOBE NEWSWIRE) — Sprout Social, Inc. (“Sprout Social”, the “Company”) (Nasdaq: SPT), an industry-leading provider of cloud-based social media management software, today announced financial results for its first quarter ended March 31, 2025.

“Our team delivered strong results in the first quarter, highlighted by 13% revenue growth, a 21% increase in cRPO, and profitability expansion,” said Ryan Barretto, CEO of Sprout Social. “We remain focused on winning in the enterprise, deepening customer adoption, scaling through partnerships, and driving expansion within accounts. With the rapid shift toward social as a primary channel for discovery and engagement, we believe our investments in customer care, AI, and influencer marketing uniquely position us to lead brands through this transformation.”

First Quarter 2025 Financial Highlights

Revenue

Revenue was $109.3 million, up 13% compared to the first quarter of 2024.
Total remaining performance obligations (RPO) of $360.2 million as of March 31, 2025, up 24% year-over-year.
Current remaining performance obligations (cRPO) of $255.8 million as of March 31, 2025, up 21% year-over-year.

Operating Income (Loss)

GAAP operating loss was ($11.2) million, compared to ($13.3) million in the first quarter of 2024.
Non-GAAP operating income was $12.5 million, compared to $6.0 million in the first quarter of 2024.

Net Loss

GAAP net loss was ($11.2) million, compared to ($13.6) million in the first quarter of 2024.
Non-GAAP net income was $12.5 million, compared to $5.7 million in the first quarter of 2024.
GAAP net loss per share was ($0.19) based on 57.9 million weighted-average shares of common stock outstanding, compared to ($0.24) based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.
Non-GAAP net income per share was $0.22 based on 57.9 million weighted-average shares of common stock outstanding, compared to $0.10 based on 56.3 million weighted-average shares of common stock outstanding in the first quarter of 2024.

Cash

Cash and equivalents and marketable securities totaled $101.9 million as of March 31, 2025, compared to $90.2 million as of December 31, 2024.
Net cash provided by operating activities was $18.1 million, compared to $11.2 million in the first quarter of 2024.
Non-GAAP free cash flow was $19.5 million, compared to $11.3 million in the first quarter of 2024.

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

Customer Metrics

Grew number of customers contributing over $10,000 in ARR to 9,381 customers as of March 31, 2025, up 6% compared to March 31, 2024.
Grew number of customers contributing over $50,000 in ARR to 1,766 customers as of March 31, 2025, up 22% compared to March 31, 2024.

Recent Customer Highlights

During the first quarter, we had the opportunity to grow with new and existing customers like: Palo Alto, NASCAR, Interscope Records, Avis Budget Car Rental, and Axos Bank.

Recent Business Highlights

Sprout Social recently:

Announced a refreshed, intuitive design along with powerful AI-driven natural language discovery and data analysis capabilities for the Sprout Social Influencer Marketing platform (link)
Celebrated 15 years of Sprout empowering brands to drive business-wide impact with social (link)

Second Quarter and 2025 Financial Outlook

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

Total revenue between $110.4 million and $111.2 million.
Non-GAAP operating income between $8.4 million and $9.4 million.
Non-GAAP net income per share between $0.14 and $0.16 based on approximately 58.8 million weighted-average shares of common stock outstanding.

For the full year 2025, the Company currently expects:

Total revenue between $448.9 million and $453.9 million.
Non-GAAP operating income between $40.7 million and $45.7 million.
Non-GAAP net income per share between $0.69 and $0.77 based on approximately 59.1 million weighted-average shares of common stock outstanding.

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

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

Conference Call Information

The financial results and business highlights will be discussed on a conference call and webcast scheduled at 4:00 p.m. Central Time (5:00 p.m. Eastern Time) today, May 8, 2025. Online registration for this event conference call can be found at https://registrations.events/direct/Q4I191310. The live webcast of the conference call can be accessed from Sprout Social’s investor relations website at http://investors.sproutsocial.com.

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

About Sprout Social
Sprout Social is a global leader in social media management and analytics software. Sprout’s unified platform puts powerful social data into the hands of approximately 30,000 brands so they can make strategic decisions that drive business growth and innovation. With a full suite of social media management solutions, Sprout offers comprehensive publishing and engagement functionality, customer care, connected workflows and AI-powered business intelligence. Sprout’s award-winning software operates across all major social media networks and digital platforms. For more information about Sprout Social (NASDAQ: SPT), visit sproutsocial.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “explore,” ”future,” “intend,” “long-term model,” “may,” “medium to longer term goals,” “might,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “strategy,” “target,” “will,” “would,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. However, not all forward-looking statements contain these identifying words. These statements may relate to our market size and growth strategy, our estimated and projected costs, margins, revenue, expenditures and customer and financial growth rates, our Q2 2025 and full year 2025 financial outlook, our plans and objectives for future operations, growth, initiatives or strategies. By their nature, these statements are subject to numerous uncertainties and risks, including factors beyond our control, that could cause actual results, performance or achievement to differ materially and adversely from those anticipated or implied in the forward-looking statements. These assumptions, uncertainties and risks include that, among others: we may not be able to sustain our revenue and customer growth rate in the future, including due to risks associated with our strategic focus on enterprise customers; price increases have and may continue to negatively impact demand for our products, customer acquisition and retention and reduce the total number of customers or customer additions; our business would be harmed by any significant interruptions, delays or outages in services from our platform, our API providers, or certain social media platforms; if we are unable to attract potential customers through unpaid channels, convert this traffic to free trials or convert free trials to paid subscriptions, our business and results of operations may be adversely affected; we may be unable to successfully enter new markets, manage our international expansion and comply with any applicable international laws and regulations; we may be unable to integrate acquired businesses or technologies successfully or achieve the expected benefits of such acquisitions and investments; unstable market, economic, and political conditions, such as recession risks, effects of inflation, trade tensions, changes in government spending, labor shortages, supply chain issues, high interest rates, and the impacts of current and potential future bank failures and ongoing overseas conflicts, have and could continue to adversely impact our business and that of our existing and prospective customers, which may result in reduced demand for our products; we may not be able to generate sufficient cash to service our indebtedness; covenants in our credit agreement may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted; any cybersecurity-related attack, significant data breach or disruption of the information technology systems or networks on which we rely could negatively affect our business; changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brand; and risks related to ongoing legal proceedings. Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 26, 2025 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, to be filed with the SEC as well as any future reports that we file with the SEC. Moreover, you should interpret many of the risks identified in those reports as being heightened as a result of the current and ongoing instability in market, economic, and political conditions. Forward-looking statements speak only as of the date the statements are made and are based on information available to Sprout Social at the time those statements are made and/or management’s good faith belief as of that time with respect to future events. Sprout Social assumes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, except as required by law.

Use of Non-GAAP Financial Measures

We have provided in this press release certain financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Our management uses these non-GAAP financial measures internally in analyzing our financial results and believes that use of these non-GAAP financial measures is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable financial measures prepared in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.

Non-GAAP gross profit. We define non-GAAP gross profit as GAAP gross profit, excluding stock-based compensation expense, amortization expense associated with the acquired developed technology from our acquisition of Tagger Media, Inc. (the “Tagger acquisition”) and restructuring charges. We believe non-GAAP gross profit provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating income. We define non-GAAP operating income as GAAP loss from operations, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP operating income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP operating margin. We define non-GAAP operating margin as non-GAAP operating income (loss) as a percentage of revenue.

Non-GAAP net income. We define non-GAAP net income as GAAP net loss, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP net income per share. We define non-GAAP net income per share as GAAP net loss per share attributable to common shareholders, basic and diluted, excluding stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe non-GAAP net income per share provides our management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations, as this non-GAAP financial measure eliminates the effect of stock-based compensation, amortization expense and restructuring charges, which are often unrelated to overall operating performance.

Non-GAAP free cash flow. We define non-GAAP free cash flow as net cash provided by operating activities less expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges. Non-GAAP free cash flow does not reflect our future contractual obligations or represent the total increase or decrease in our cash balance for a given period. We believe non-GAAP free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash provided by our core operations that, after expenditures for property and equipment, interest payments on our revolving credit facility and payments related to restructuring charges, is available for strategic initiatives.

Non-GAAP free cash flow margin. We define non-GAAP free cash flow margin as non-GAAP free cash flow as a percentage of revenue.

Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses. Non-GAAP sales and marketing expenses, non-GAAP research and development expenses and non-GAAP general and administrative expenses are defined as sales and marketing expenses, research and development expenses and general and administrative expenses, respectively, less stock-based compensation expense, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges. We believe these non-GAAP measures provide our management and investors with insight into day-to-day operating expenses given that these measures eliminate the effect of stock-based compensation, amortization expense associated with the acquired intangible assets from the Tagger acquisition and restructuring charges.

Key Business Metrics

Remaining performance obligations (“RPO”). RPO, or remaining performance obligations, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in future periods.

Current remaining performance obligations (“cRPO”). cRPO, or current RPO, represents contracted revenue that has not yet been recognized, and includes deferred revenue and amounts that will be invoiced and recognized in the next 12 months.

Number of customers contributing more than $10,000 in ARR. We define number of customers contributing more than $10,000 in ARR as those on a paid subscription plan that had more than $10,000 in ARR as of a period end. We view the number of customers that contribute more than $10,000 in ARR as a measure of our ability to scale with our customers and attract larger organizations. We believe this represents potential for future growth, including expanding within our current customer base.

Number of customers contributing more than $50,000 in ARR. We define number of customers contributing more than $50,000 in ARR as those on a paid subscription plan that had more than $50,000 in ARR as of a period end. We view the number of customers that contribute more than $50,000 in ARR as a measure of our ability to scale with large customers and attract sophisticated organizations. We believe this represents potential for future growth, including expanding within our current customer base.

While we no longer believe that ARR and number of customers are key performance indicators of Sprout Social’s business, these metrics are necessary for an understanding of how we define number of customers contributing over $10,000 in ARR and number of customers contributing over $50,000 in ARR. For this purpose, we define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last date of the specified period and we define a customer as a unique account, multiple accounts containing a common non-personal email domain, or multiple accounts governed by a single agreement or entity.

Availability of Information on Sprout Social’s Website and Social Media Profiles

Investors and others should note that Sprout Social routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Sprout Social Investors website. We also intend to use the social media profiles listed below as a means of disclosing information about us to our customers, investors and the public. While not all of the information that the Company posts to the Sprout Social Investors website or to social media profiles is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media, and others interested in Sprout Social to review the information that it shares at the Investors link located at the bottom of the page on www.sproutsocial.com and to regularly follow our social media profiles. Users may automatically receive email alerts and other information about Sprout Social when enrolling an email address by visiting “Email Alerts” in the “Shareholder Services” section of Sprout Social’s Investor website at https://investors.sproutsocial.com/.

Social Media Profiles:
www.twitter.com/SproutSocial
www.twitter.com/SproutSocialIR
www.facebook.com/SproutSocialInc
www.linkedin.com/company/sprout-social-inc-/
www.instagram.com/sproutsocial

Contact

Media:
Layla Revis
Email: pr@sproutsocial.com
Phone: (866) 878-3231

Investors:
Alex Kurtz
Twitter: @SproutSocialIR
Email: investors@sproutsocial.com
Phone: (312) 528-9166

Sprout Social, Inc.
Consolidated Statements of Operations (Unaudited)
*(in thousands, except share and per share data)*

	Three Months Ended March 31,
		2025			2024
Revenue
Subscription	$	108,680		$	95,789
Professional services and other		609			995
Total revenue		109,289			96,784
Cost of revenue(1)
Subscription		24,473			22,205
Professional services and other		365			223
Total cost of revenue		24,838			22,428
Gross profit		84,451			74,356
Operating expenses
Research and development(1)		23,229			23,769
Sales and marketing(1)		47,452			44,540
General and administrative(1)		24,972			19,334
Total operating expenses		95,653			87,643
Loss from operations		(11,202	)		(13,287	)
Interest expense		(514	)		(1,046	)
Interest income		895			1,035
Other expense, net		(168	)		(406	)
Loss before income taxes		(10,989	)		(13,704	)
Income tax expense (benefit)		231			(129	)
Net loss	$	(11,220	)	$	(13,575	)
Net loss per share attributable to common shareholders, basic and diluted	$	(0.19	)	$	(0.24	)
Weighted-average shares outstanding used to compute net loss per share, basic and diluted		57,890,898			56,344,242

(1) Includes stock-based compensation expense as follows:
	Three Months Ended March 31,
		2025			2024
Cost of revenue	$	746		$	925
Research and development		6,206			5,450
Sales and marketing		5,936			7,376
General and administrative		6,907			4,315
Total stock-based compensation expense	$	19,795		$	18,066

Sprout Social, Inc.
Consolidated Balance Sheets (Unaudited)
*(in thousands, except share and per share data)*

	March 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	100,902		$	86,437
Marketable securities		1,000			3,745
Accounts receivable, net of allowances of $3,119 and $2,169 at March 31, 2025 and December 31, 2024, respectively		64,783			84,033
Deferred Commissions		21,803			20,184
Prepaid expenses and other assets		19,057			15,816
Total current assets		207,545			210,215
Property and equipment, net		10,902			10,951
Deferred commissions, net of current portion		52,327			51,653
Operating lease, right-of-use asset		10,985			11,326
Goodwill		121,315			121,315
Intangible assets, net		20,621			21,914
Other assets, net		962			967
Total assets	$	424,657		$	428,341
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	7,260		$	6,984
Deferred revenue		173,952			178,585
Operating lease liability		3,504			3,747
Accrued wages and payroll related benefits		16,002			20,567
Accrued expenses and other		13,378			10,869
Total current liabilities		214,096			220,752
Revolving credit facility		20,000			25,000
Deferred revenue, net of current portion		944			1,101
Operating lease liability, net of current portion		13,960			14,543
Other non-current liabilities		348			351
Total liabilities		249,348			261,747

Stockholders’ equity

Class A common stock, par value $0.0001 per share; 1,000,000,000 shares authorized; 54,787,894 and 51,845,950 shares issued and outstanding, respectively, at March 31, 2025; 54,219,684 and 51,277,740 shares issued and outstanding, respectively, at December 31, 2024		4			4
Class B common stock, par value $0.0001 per share; 25,000,000 shares authorized; 6,536,301 and 6,329,357 shares issued and outstanding, respectively, at March 31, 2025; 6,687,582 and 6,480,638 shares issued and outstanding, respectively, at December 31, 2024		1			1
Additional paid-in capital		578,328			558,391
Treasury stock, at cost		(37,422	)		(37,422	)
Accumulated other comprehensive income		1			3
Accumulated deficit		(365,603	)		(354,383	)
Total stockholders’ equity		175,309			166,594
Total liabilities and stockholders’ equity	$	424,657		$	428,341

Sprout Social, Inc.
Consolidated Statements of Cash Flows (Unaudited)
*(in thousands)*

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities
Net loss	$	(11,220	)	$	(13,575	)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization of property, equipment and software		1,225			887
Amortization of line of credit issuance costs		52			52
Accretion of discount on marketable securities		(7	)		(223	)
Amortization of acquired intangible assets		1,293			1,570
Amortization of deferred commissions		5,283			3,523
Amortization of right-of-use operating lease asset		341			436
Stock-based compensation expense		19,795			18,066
Provision for accounts receivable allowances		1,129			56
Changes in operating assets and liabilities, excluding impact from business acquisition
Accounts receivable		18,122			13,017
Prepaid expenses and other current assets		(3,229	)		(7,670	)
Deferred commissions		(7,577	)		(6,783	)
Accounts payable and accrued expenses		(1,487	)		(2,865	)
Deferred revenue		(4,790	)		5,648
Lease liabilities		(826	)		(975	)
Net cash provided by operating activities		18,104			11,164
Cash flows from investing activities
Expenditures for property and equipment		(1,357	)		(1,092	)
Payments for business acquisition, net of cash acquired		–			(1,409	)
Proceeds from maturity of marketable securities		2,750			22,555
Net cash provided by investing activities		1,393			20,054
Cash flows from financing activities
Repayments of line of credit		(5,000	)		(10,000	)
Employee taxes paid related to the net share settlement of stock-based awards		–			(1,476	)
Net cash used in financing activities		(5,000	)		(11,476	)
Net increase in cash, cash equivalents, and restricted cash		14,497			19,742
Cash, cash equivalents, and restricted cash
Beginning of period		90,418			53,695
End of period	$	104,915		$	73,437

The following schedule reflects our non-GAAP financial measures and reconciles our non-GAAP financial measures to the related GAAP financial measures (in thousands, except per share data):

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended March 31,
		2025			2024
Reconciliation of Non-GAAP gross profit
Gross profit	$	84,451		$	74,356
Stock-based compensation expense		746			925
Amortization of acquired developed technology		705			705
Restructuring charges		416			–
Non-GAAP gross profit	$	86,318		$	75,986

Reconciliation of Non-GAAP operating income
Loss from operations	$	(11,202	)	$	(13,287	)
Stock-based compensation expense		19,795			18,066
Amortization of acquired intangible assets		1,213			1,213
Restructuring charges		2,731			–
Non-GAAP operating income	$	12,537		$	5,992

Reconciliation of Non-GAAP net income
Net loss	$	(11,220	)	$	(13,575	)
Stock-based compensation expense		19,795			18,066
Amortization of acquired intangible assets		1,213			1,213
Restructuring charges		2,731			–
Non-GAAP net income	$	12,519		$	5,704

Reconciliation of Non-GAAP net income per share
Net loss per share attributable to common shareholders, basic and diluted	$	(0.19	)	$	(0.24	)
Stock-based compensation expense		0.34			0.32
Amortization of acquired intangible assets		0.02			0.02
Restructuring charges		0.05			–
Non-GAAP net income per share	$	0.22		$	0.10

Reconciliation of Non-GAAP free cash flow
Net cash provided by operating activities	$	18,104		$	11,164
Expenditures for property and equipment		(1,357	)		(1,092	)
Interest paid on credit facility		484			1,260
Payments related to restructuring charges		2,249			–
Non-GAAP free cash flow	$	19,480		$	11,332

The MIL Network –

May 9, 2025

MIL-OSI: PubMatic Announces First Quarter 2025 Financial Results; Board of Directors Authorizes $100M Expansion of Share Repurchase Program

Source: GlobeNewswire (MIL-OSI)

Delivered revenue and adjusted EBITDA ahead of guidance;

Revenue from omnichannel video, including CTV, grew 20% and was 40% of total revenue;

CTV revenue grew over 50% year-over-year; and

Supply Path Optimization represented a record 55%+ of total activity

NO-HEADQUARTERS/REDWOOD CITY, Calif., May 08, 2025 (GLOBE NEWSWIRE) — PubMatic, Inc. (Nasdaq: PUBM), an independent technology company delivering digital advertising’s supply chain of the future, today reported financial results for the first quarter ending March 31, 2025.

“We are pleased with our Q1 performance, exceeding guidance on both the top and bottom line driven by the secular growth areas in our business. Ongoing investments in product innovation and go to market teams drove 21% year over year growth in our underlying business, with momentum carrying into April,” said Rajeev Goel, co-founder and CEO at PubMatic. “We firmly believe the current environment serves as a catalyst to accelerate the shift to programmatic and AI-driven solutions. Sell-side activation is emerging as the preferred model across the open internet as advertiser demand for more transparent, performant paths to inventory and data continues to increase. PubMatic sits at the forefront of this transformation while creating value for the entire supply chain.”

First Quarter 2025 Financial Highlights

Revenue in the first quarter of 2025 was $63.8 million, compared to $66.7 million in the same period of 2024;
Net dollar-based retention¹ was 102% for the trailing twelve-months ended March 31, 2025, compared to 106% in the comparable trailing twelve-month period a year ago;
GAAP net loss was $(9.5) million with a margin of (15)%, or $(0.20) per diluted share in the first quarter, compared to GAAP net loss of $(2.5) million with a margin of (4)%, or $(0.05) per diluted share in the same period of 2024;
Adjusted EBITDA was $8.5 million, or 13% margin, compared to $15.1 million, or a 23% margin, in the same period of 2024;
Non-GAAP net loss was $(1.8) million, or $(0.04) per diluted share in the first quarter, compared to Non-GAAP net income of $4.8 million, or $0.09 per diluted share in the same period of 2024;
Net cash provided by operating activities was $15.6 million, compared to $24.3 million in the same period of 2024;
Total cash, cash equivalents, and marketable securities of $144.1 million as of March 31, 2025 with no debt;
Through March 31, 2025, used $138.2 million to repurchase 8.7 million shares of Class A common stock, representing 17% of fully diluted shares as of the program’s inception. PubMatic’s Board of Directors has authorized a $100.0 million expansion of the share repurchase program through 2026.

The section titled “Non-GAAP Financial Measures” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

Revenue from CTV grew over 50% year-over-year. PubMatic partners with 80% of the top 30 streaming publishers.
Revenue from omnichannel video, which includes CTV, grew 20% year-over-year and represented 40% of total revenue.

PubMatic’s Sell-Side Platform continues to scale; deliver performance

Premium CTV inventory continues to scale, with new and expanded partnerships across the globe including Spectrum Reach, the advertising division of Charter Communications, TCL for live sports streaming content and the BBC’s free ad supported streaming channels.
Supply Path Optimization represented a record 55%+ of total activity on our platform in Q1 2025, up from 50% a year ago, driven by Activate, CTV Marketplace, and robust sell-side targeting capabilities. PubMatic received the The Supply Path Optimization (SPO) Award as part of AdExchanger’s 2025 Programmatic Impact Awards, highlighting the performance impact of Activate.
Activity from mid-market DSPs that specialize in performance marketing almost tripled on a year-over-year basis. These buyers are rapidly scaling ad spend on PubMatic as they prioritize access to premium supply, addressable audiences, and full-funnel sell-side solutions.
Kroger Precision Marketing (KPM) consolidated activity on PubMatic as part of their effort to improve media performance by reducing the number of supply partners by 70%. As a result of the partnership, KPM saw a 20% increase in click through rates in campaigns transacted via PubMatic.
Publishers using PubMatic’s audience curation tools see up to a 10% increase in advertising revenue, due to an increased diversity of ad buyers and higher CPMs.

Launched upgraded Gen AI buyer platform

This end-to-end platform combines proprietary supply-side intelligence with AI-powered buying tools. It delivers efficiency gains and superior outcomes for advertisers, agencies and curators, while streamlining every stage of the media buying process—from audience and inventory discovery and forecasting to curation, activation, and performance optimization.
Offers ad buyers direct access to nearly the entire open internet – approximately 1,950 premium publishers, privacy-safe audience data from 190 data partners, and over 829 billion daily ad impressions.

Owned and operated infrastructure drives operational efficiencies

Infrastructure optimization initiatives combined with limited capex drove nearly 75 trillion impressions processed in Q1 2025, an increase of 29% over Q1 2024.
Cost of revenue per million impressions processed decreased 20% on a trailing twelve month period, as compared to the prior period.

“We delivered a strong first quarter and our 36th consecutive quarter of adjusted EBITDA profitability. Looking to the second half of the year, based on the strong momentum we are seeing in our underlying business, combined with our go-to-market and innovation investments, we expect our underlying revenues to continue growing 15%+,” said Steve Pantelick, CFO at PubMatic. “Additionally, we have implemented a prudent operational plan that will allow us to continue investing behind the fastest growing programmatic opportunities, while also protecting our profitability and balance sheet. This, coupled with our durable business model, gives us confidence that we can successfully navigate the current environment and be well positioned for future market share gains.”

Financial Outlook

Our outlook assumes that general market conditions do not significantly deteriorate as it relates to current macroeconomic and geopolitical conditions.

Accordingly, we estimate the following for the second quarter of 2025:

Revenue to be between $66 million to $70 million, inclusive of the impact from one of our top DSP buyers that revised its auction approach in mid 2024.
Adjusted EBITDA to be in the range of $9 million to $12 million, representing approximately a 17% margin at the midpoint. Adjusted EBITDA expectation assumes a negative foreign currency exchange impact predominantly from Euro and Pound Sterling expenses.

Although we provide guidance for adjusted EBITDA, we are not able to provide guidance for net income, the most directly comparable GAAP measure. Certain elements of the composition of GAAP net income, including stock-based compensation expenses, are not predictable, making it impractical for us to provide guidance on net income or to reconcile our adjusted EBITDA guidance to net income without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information.

Conference Call and Webcast details

PubMatic will host a conference call to discuss its financial results on Tuesday, May 8, 2025 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from PubMatic’s Investor Relations website at https://investors.pubmatic.com. An archived version of the webcast will be available from the same website after the call.

Non-GAAP Financial Measures

In addition to our results determined in accordance with U.S. generally accepted accounting principles (GAAP), including, in particular operating income (loss), net cash provided by operating activities, and net income (loss), we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income (loss) adjusted for stock-based compensation expense, depreciation and amortization, interest income, and benefit from income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income (loss) as net income (loss) adjusted for stock-based compensation expense and adjustments for income taxes. We define non-GAAP free cash flow as net cash provided by operating activities reduced by purchases of property and equipment and capitalized software development costs.

In addition to operating income (loss) and net income (loss), we use adjusted EBITDA, non-GAAP net income (loss), and free cash flow as measures of operational efficiency. We believe that these non-GAAP financial measures are useful to investors for period to period comparisons of our business and in understanding and evaluating our operating results for the following reasons:

Adjusted EBITDA and non-GAAP net income (loss) are widely used by investors and securities analysts to measure a company’s operating performance without regard to items such as stock-based compensation expense, depreciation and amortization, interest expense, and benefit from income taxes that can vary substantially from company to company depending upon their financing, capital structures and the method by which assets were acquired; and,
Our management uses adjusted EBITDA, non-GAAP net income (loss), and free cash flow in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance or, in the case of free cash flow, as a measure of liquidity, and the effectiveness of our business strategies and in communications with our board of directors concerning our financial performance; and adjusted EBITDA provides consistency and comparability with our past financial performance, facilitates period-to-period comparisons of operations, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results.

Our use of non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Some of these limitations are as follows:

Adjusted EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; (b) the potentially dilutive impact of stock-based compensation; or (c) tax payments that may represent a reduction in cash available to us;
Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; and
Non-GAAP net income (loss) does not include: (a) the potentially dilutive impact of stock-based compensation; and (b) income tax effects for stock-based compensation

Because of these and other limitations, you should consider adjusted EBITDA, non-GAAP net income, and free cash flow along with other GAAP-based financial measures, including net income (loss) and cash flow from operating activities, and our GAAP financial results.

Forward Looking Statements

This press release contains “forward-looking statements” regarding our future business expectations, including our guidance relating to our revenue and adjusted EBITDA for the second quarter of 2025 and capex for the full year 2025, our expectations regarding our total addressable market, future market growth, and our ability to gain market share. These forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions and may differ materially from actual results due to a variety of factors including: our dependency on the overall demand for advertising and the channels we rely on; our existing customers not expanding their usage of our platform, or our failure to attract new publishers and buyers; our ability to maintain and expand access to spend from buyers and valuable ad impressions from publishers; the rejection of the use of digital advertising by consumers through opt-in, opt-out or ad-blocking technologies or other means; our failure to innovate and develop new solutions that are adopted by publishers; the war between Ukraine and Russia and the ongoing conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation, tariffs and recessionary fears as well as fiscal tightening, changes in the interest rate environment and continuing volatility in global capital markets; global macroeconomic uncertainty; limitations imposed on our collection, use or disclosure of data about advertisements; the lack of similar or better alternatives to the use of third-party cookies, mobile device IDs or other tracking technologies if such uses are restricted; any failure to scale our platform infrastructure to support anticipated growth and transaction volume; liabilities or fines due to publishers, buyers, and data providers not obtaining consents from consumers for us to process their personal data; any failure to comply with laws and regulations related to data privacy, data protection, information security, and consumer protection; and our ability to manage our growth. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. For more information about risks and uncertainties associated with our business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of our SEC filings, including but not limited to, our annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. All information in this press release is as of May 8, 2025. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

About PubMatic

PubMatic is an independent technology company maximizing customer value by delivering digital advertising’s supply chain of the future. PubMatic’s sell-side platform empowers the world’s leading digital content creators across the open internet to control access to their inventory and increase monetization by enabling marketers to drive return on investment and reach addressable audiences across ad formats and devices. Since 2006, PubMatic’s infrastructure-driven approach has allowed for the efficient processing and utilization of data in real time. By delivering scalable and flexible programmatic innovation, PubMatic improves outcomes for its customers while championing a vibrant and transparent digital advertising supply chain.


CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Current assets
Cash and cash equivalents	$	101,811		$	100,452
Marketable securities		42,315			40,135
Accounts receivable, net		349,123			424,814
Prepaid expenses and other current assets		12,018			10,145
Total current assets		505,267			575,546
Property, equipment and software, net		54,386			58,522
Operating lease right-of-use assets		42,575			44,402
Acquisition-related intangible assets, net		3,889			4,284
Goodwill		29,577			29,577
Deferred tax assets		29,619			24,864
Other assets, non-current		3,289			2,324
TOTAL ASSETS	$	668,602		$	739,519
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	323,611		$	386,602
Accrued liabilities		20,309			26,365
Operating lease liabilities, current		6,241			5,843
Total current liabilities		350,161			418,810
Operating lease liabilities, non-current		38,649			39,538
Other liabilities, non-current		4,191			3,908
TOTAL LIABILITIES		393,001			462,256
Stockholders’ equity
Common stock		6			6
Treasury stock		(150,409	)		(146,796	)
Additional paid-in capital		286,471			275,304
Accumulated other comprehensive loss		(366	)		(636	)
Retained earnings		139,899			149,385
TOTAL STOCKHOLDERS’ EQUITY		275,601			277,263
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	668,602		$	739,519


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited)

	Three Months Ended March 31,
		2025			2024
Revenue	$	63,825		$	66,701
Cost of revenue⁽¹⁾		25,588			25,424
Gross profit		38,237			41,277
Operating expenses:⁽¹⁾
Technology and development		8,772			7,960
Sales and marketing		26,799			24,815
General and administrative		14,569			14,027
Total operating expenses		50,140			46,802
Operating loss		(11,903	)		(5,525	)
Interest income		1,593			2,564
Other income (expense), net		(1,014	)		258
Loss before income taxes		(11,324	)		(2,703	)
Benefit from income taxes		(1,838	)		(249	)
Net loss	$	(9,486	)	$	(2,454	)

Basic and diluted net loss per share of Class A and Class B stock	$	(0.20	)	$	(0.05	)
Weighted-average shares used to compute net loss per share attributable to common stockholders:
Basic		48,346			50,039
Diluted		48,346			50,039

⁽¹⁾Stock-based compensation expense includes the following:


STOCK-BASED COMPENSATION EXPENSE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025		2024
Cost of revenue	$	474	$	437
Technology and development		1,585		1,441
Sales and marketing		3,463		3,238
General and administrative		4,176		3,995
Total stock-based compensation expense	$	9,698	$	9,111


CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss	$	(9,486	)	$	(2,454	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		11,676			11,212
Stock-based compensation		9,698			9,111
Deferred income taxes		(4,754	)		(4,667	)
Accretion of discount on marketable securities		(454	)		(1,234	)
Non-cash operating lease expense		1,928			1,690
Other		(223	)		(1	)
Changes in operating assets and liabilities:
Accounts receivable		75,691			72,184
Prepaid expenses and other assets		5,681			(196	)
Accounts payable		(62,578	)		(58,444	)
Accrued liabilities		(11,287	)		(1,784	)
Operating lease liabilities		(590	)		(1,380	)
Other liabilities, non-current		319			257
Net cash provided by operating activities		15,621			24,294
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(1,441	)		(801	)
Capitalized software development costs		(6,880	)		(7,231	)
Purchases of marketable securities		(15,307	)		(34,336	)
Proceeds from maturities of marketable securities		13,559			38,500
Net cash used in investing activities		(10,069	)		(3,868	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback		—			(2,148	)
Proceeds from exercise of stock options		563			939
Principal payments on finance lease obligations		(35	)		(32	)
Payments to acquire treasury stock		(5,000	)		(17,500	)
Net cash used in financing activities		(4,472	)		(18,741	)
NET INCREASE IN CASH AND CASH EQUIVALENTS		1,080			1,685
Effect of foreign currency on cash		279			—
CASH AND CASH EQUIVALENTS – Beginning of period		100,452			78,509
CASH AND CASH EQUIVALENTS – End of period	$	101,811		$	80,194


RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share amounts) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Depreciation and amortization		11,676			11,212
Interest income		(1,593	)		(2,564	)
Benefit from income taxes		(1,838	)		(249	)
Adjusted EBITDA	$	8,457		$	15,056
Revenue	$	63,825		$	66,701
Adjusted EBITDA margin		13	%		23	%


	Three Months Ended March 31,
		2025			2024
Reconciliation of net loss per share:
Net loss	$	(9,486	)	$	(2,454	)
Add back (deduct):
Stock-based compensation		9,698			9,111
Adjustment for income taxes		(2,055	)		(1,886	)
Non-GAAP net income (loss)	$	(1,843	)	$	4,771
GAAP diluted EPS	$	(0.20	)	$	(0.05	)
Non-GAAP diluted EPS	$	(0.04	)	$	0.09
GAAP weighted average shares outstanding—diluted		48,346			50,039
Non-GAAP weighted average shares outstanding—diluted		48,346			55,006

Reported GAAP diluted loss and Non-GAAP diluted loss per share for the three months ended March 31, 2025, and reported GAAP diluted loss per share for the three months ended March 31, 2024 were calculated using basic share count. Non-GAAP diluted earnings per share for the three months ended March 31, 2024 was calculated using diluted share count which includes approximately 5 million shares of dilutive securities related to employee stock awards.


SUPPLEMENTAL CASH FLOW INFORMATION COMPUTATION OF FREE CASH FLOW, A NON-GAAP MEASURE (In thousands) (unaudited)

	Three Months Ended March 31,
		2025			2024
Reconciliation of cash provided by operating activities:
Net cash provided by operating activities	$	15,621		$	24,294
Less: Purchases of property and equipment		(1,441	)		(801	)
Less: Capitalized software development costs		(6,880	)		(7,231	)
Free cash flow	$	7,300		$	16,262

^¹ Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended March 31, 2024 (Prior Period Revenue). We then calculate the revenue from these same publishers in the trailing twelve months ended March 31, 2025 (Current Period Revenue). Current Period Revenue includes any upsells and is net of contraction or attrition, but excludes revenue from new publishers. Our net dollar-based retention rate equals the Current Period Revenue divided by Prior Period Revenue. Net dollar-based retention rate is an important indicator of publisher satisfaction and usage of our platform, as well as potential revenue for future periods

The MIL Network –

May 9, 2025

MIL-OSI: ARKO Corp. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

RICHMOND, Va., May 08, 2025 (GLOBE NEWSWIRE) — ARKO Corp. (Nasdaq: ARKO) (“ARKO” or the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Key Highlights (vs. Year-Ago Quarter) ^1,2

Net loss for the quarter was $12.7 million compared to a net loss of $0.6 million.
Adjusted EBITDA for the quarter was $30.9 million compared to $33.2 million.
Merchandise margin for the quarter increased to 33.2% compared to 32.5%.
Merchandise contribution for the quarter was $117.6 million compared to $134.9 million; more than half of the merchandise contribution decline for the quarter was associated with the Company’s accretive dealerization program.
Retail fuel margin for the quarter was 37.9 cents per gallon compared to 36.4 cents per gallon.
Retail fuel contribution for the quarter was $85.3 million compared to $92.9 million; more than half of the retail fuel contribution decline for the quarter was associated with the Company’s accretive dealerization program.

Other Key Highlights

As part of the Company’s developing transformation plan, the Company converted 59 retail stores to dealer sites during the three months ended March 31, 2025. In April of 2025, the Company converted 18 additional retail stores to dealer sites and plans to convert a meaningful number of additional stores throughout 2025. The Company continues to expect that, at scale, this channel optimization will yield a cumulative annualized operating income benefit in excess of $20 million.
The Company advanced its store remodeling initiative, which is expected to include an expanded and refined merchandise assortment with an enhanced in-store experience and a focus on food. These remodels are designed to elevate the customer experience through improved store layout and convenience. The Company began construction of the first of its seven planned pilot remodels in early May 2025 and expects to begin construction on the second pilot remodel in mid-May 2025.
In the first quarter of 2025, the Company opened a new Dunkin’ store and a fastmarket^(R) location. Additionally, the Company expects to open four NTI (new-to-industry) stores in the second half of 2025. Three of these NTIs have started construction, with one store awaiting a final permit.
On March 12, 2025, the Company started its Fueling America’s Future campaign in its stores, centered around providing enrolled loyalty customers with both value promotions inside the store and significant discounts at the pump.
The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on May 30, 2025 to stockholders of record as of May 19, 2025.

¹ See Use of Non-GAAP Measures below.
² All figures for fuel costs, fuel contribution and fuel margin per gallon exclude the estimated fixed margin or fixed fee paid to the Company’s wholesale fuel distribution subsidiary, GPM Petroleum LP (“GPMP”) for the cost of fuel (intercompany charges by GPMP).

“Despite a pressured consumer environment, we effectively navigated ongoing macroeconomic headwinds in the first quarter,” said Arie Kotler, Chairman, President and Chief Executive Officer of ARKO. “We delivered results above the midpoint of our guidance, underscoring our commitment to execution with discipline and remaining focused on what we can control. This quarter, we also faced incremental pressure from adverse weather conditions in January and February, which impacted sales and increased snow removal expenses across key regions, and from lapping of a leap day in the first quarter of the prior year. We also continued to advance key elements of our transformation strategy – converting company-operated retail stores to dealer sites, advancing our NTI store rollout, and enhancing customer engagement through food service and targeted loyalty initiatives both in-store and at the pump. We remain focused on executing across the business while keeping our long-term strategic priorities firmly in view.”

Mr. Kotler continued: “As we move forward in 2025, we remain committed to driving shareholder returns. We repurchased 1.3 million shares during the first quarter, with substantially all of those repurchases executed in March. We are focused on using all available tools to support long-term value creation and taking a disciplined approach to capital deployment. These actions reflect our commitment to shareholders and represent a strategic and thoughtful path to delivering meaningful returns.”

First Quarter 2025 Segment Highlights

Retail

	For the Three Months Ended March 31,
	2025			2024
	(in thousands)
Fuel gallons sold		225,063			255,464
Same store fuel gallons sold decrease (%) ¹		(6.2	%)		(6.7	%)
Fuel contribution ²	$	85,273		$	92,933
Fuel margin, cents per gallon ³		37.9			36.4
Same store fuel contribution ^1,2	$	83,027		$	86,275
Same store merchandise sales decrease (%) ¹		(6.9	%)		(4.1	%)
Same store merchandise sales excluding cigarettes decrease (%) ¹		(5.2	%)		(3.0	%)
Merchandise revenue	$	354,485		$	414,655
Merchandise contribution ⁴	$	117,570		$	134,918
Merchandise margin ⁵		33.2	%		32.5	%
Same store merchandise contribution ^1,4	$	114,046		$	120,666
Same store site operating expenses ¹	$	169,994		$	172,325

¹Same store is a common metric used in the convenience store industry. The Company considers a store a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. Refer to Use of Non-GAAP Measures below for discussion of this measure.
²Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.
³Calculated as fuel contribution divided by fuel gallons sold.
⁴Calculated as merchandise revenue less merchandise costs.
⁵Calculated as merchandise contribution divided by merchandise revenue.

Merchandise contribution for the first quarter of 2025 decreased $17.3 million, or 12.9%, compared to the first quarter of 2024, while merchandise margin increased to 33.2% in the first quarter of 2025 compared to 32.5% in the prior year period. The decrease in merchandise contribution was due to a decrease of $12.8 million related to retail stores that were closed or converted to dealers in the trailing 12 month period and a decrease in same store merchandise contribution of $6.6 million, primarily caused by a decline in customer transactions reflecting the challenging macroeconomic environment as well as severe weather conditions in January and February 2025 in certain of the markets in which the Company operates. These decreases were partially offset by an increase in merchandise contribution of $1.8 million from the SpeedyQ acquisition that closed in April 2024. Merchandise contribution at same stores decreased in the first quarter of 2025 primarily due to lower contribution from several core destination categories and cigarettes.

Fuel contribution for the first quarter of 2025 decreased $7.7 million, or 8.2%, compared to the first quarter of 2024, with a same store fuel contribution decrease of $3.2 million attributable to gallon demand declines, reflecting the challenging macroeconomic environment as well as severe weather conditions in January and February 2025 in certain of the markets in which the Company operates. Fuel margin of 37.9 cents per gallon was up 1.5 cents per gallon compared to the first quarter of 2024. In addition, a decrease in retail fuel contribution of $5.8 million was related to retail stores that were closed or converted to dealers in the trailing 12 month period, partially offset by incremental fuel contribution from the SpeedyQ acquisition of approximately $1.3 million.

Wholesale

	For the Three Months Ended March 31,
	2025		2024
	(in thousands)
Fuel gallons sold – fuel supply locations		191,077		186,731
Fuel gallons sold – consignment agent locations		36,515		37,504
Fuel contribution ¹– fuel supply locations	$	11,453	$	11,562
Fuel contribution ¹– consignment agent locations	$	8,594	$	9,168
Fuel margin, cents per gallon ²– fuel supply locations		6.0		6.2
Fuel margin, cents per gallon ²– consignment agent locations		23.5		24.4

¹Calculated as fuel revenue less fuel costs; excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.
²Calculated as fuel contribution divided by fuel gallons sold.
Note: Comparable wholesale sites exclude retail stores converted to dealers, until the first quarter in which these sites had a full quarter of wholesale activity in the prior year.

For the first quarter of 2025, wholesale operating income increased $0.3 million, compared to the first quarter of 2024. Additional operating income from retail sites converted to dealers in the trailing 12 month period more than offset reduced operating income at comparable wholesale sites.

Fuel contribution was $20.0 million for the first quarter of 2025 compared to $20.7 million for the first quarter of 2024. Fuel contribution for the first quarter of 2025 at fuel supply locations decreased by $0.1 million, and fuel contribution at consignment agent locations decreased by $0.6 million, as compared to the prior year period, with fuel margin decreases of 0.2 cents per gallon and 0.9 cents per gallon, respectively, due principally to lower volumes at comparable wholesale sites primarily due to severe weather conditions in January and February 2025 in certain of the markets in which the Company operates, which was partially offset by incremental contribution from retail stores converted to dealers. For the first quarter of 2025, other revenues, net increased by approximately $3.5 million, and site operating expenses increased by $2.5 million in each case as compared to the first quarter of 2024, resulting primarily from retail stores which converted to dealers in the trailing 12 month period.

Fleet Fueling

	For the Three Months Ended March 31,
	2025		2024
	(in thousands)
Fuel gallons sold – proprietary cardlock locations		31,918		33,449
Fuel gallons sold – third-party cardlock locations		3,175		3,199
Fuel contribution ¹– proprietary cardlock locations	$	14,706	$	13,669
Fuel contribution ¹– third-party cardlock locations	$	596	$	247
Fuel margin, cents per gallon ²– proprietary cardlock locations		46.1		40.9
Fuel margin, cents per gallon ²– third-party cardlock locations		18.7		7.7

¹Calculated as fuel revenue less fuel costs; excludes the estimated fixed fee paid to GPMP for the cost of fuel.
²Calculated as fuel contribution divided by fuel gallons sold.

Fuel contribution for the first quarter of 2025 increased by $1.4 million compared to the first quarter of 2024. At proprietary cardlocks, fuel contribution increased by $1.0 million, and fuel margin per gallon also increased for the first quarter of 2025 compared to the first quarter of 2024 primarily due to favorable diesel margins. At third-party cardlock locations, fuel contribution increased by $0.4 million, and fuel margin per gallon also increased for the first quarter of 2025 compared to the first quarter of 2024, primarily due to the closure of underperforming third-party locations.

Site Operating Expenses

For the three months ended March 31, 2025, convenience store operating expenses decreased $20.8 million, or 10.5%, compared to the prior year period primarily due to a decrease of $22.2 million from retail stores that were closed or converted to dealers and a decrease in same store operating expenses of $2.3 million, or 1.4%, related to lower personnel costs and credit card fees, partially offset by higher snow removal expenses resulting from severe weather conditions in certain of the markets in which the Company operates. These decreases were partially offset by $3.3 million of incremental expenses related to the SpeedyQ acquisition that closed in April 2024.

Liquidity and Capital Expenditures

As of March 31, 2025, the Company’s total liquidity was approximately $847 million, consisting of approximately $265 million of cash and cash equivalents and approximately $582 million of availability under lines of credit. Outstanding debt was $880 million, resulting in net debt, excluding lease related financing liabilities, of approximately $615 million. Capital expenditures were approximately $27.4 million for the quarter ended March 31, 2025, including the purchase of a fee property, investments in NTI stores, EV chargers, upgrades to fuel dispensers and other investments in stores.

Quarterly Dividend and Share Repurchase Program

The Company’s ability to return cash to its stockholders through its cash dividend program and share repurchase program is consistent with its capital allocation framework and reflects the Company’s confidence in the strength of its cash generation ability and strong financial position.

The Board declared a quarterly dividend of $0.03 per share of common stock to be paid on May 30, 2025 to stockholders of record as of May 19, 2025.

During the quarter, the Company repurchased approximately 1.3 million shares of common stock under its previously announced repurchase program for approximately $5.2 million, or an average price of $4.01 per share. There was approximately $20.5 million remaining under the share repurchase program as of March 31, 2025.

Company-Operated Retail Store Count and Segment Update

The following tables present certain information regarding changes in the retail, wholesale and fleet fueling segments for the periods presented:

	For the Three Months Ended March 31,
Retail Segment	2025			2024
Number of sites at beginning of period		1,389			1,543
Newly opened or reopened sites		2			1
Company-controlled sites converted to
consignment or fuel supply locations, net		(59	)		—
Sites closed, divested or converted to rentals		(3	)		(4	)
Number of sites at end of period		1,329			1,540

	For the Three Months Ended March 31,
Wholesale Segment ¹	2025			2024
Number of sites at beginning of period		1,922			1,825
Newly opened or reopened sites ²		6			9
Consignment or fuel supply locations converted
from Company-controlled sites, net		59			—
Closed or divested sites		(26	)		(18	)
Number of sites at end of period		1,961			1,816

¹Excludes bulk and spot purchasers.
²Includes all signed fuel supply agreements irrespective of fuel distribution commencement date.

	For the Three Months Ended March 31,
Fleet Fueling Segment	2025			2024
Number of sites at beginning of period		280			298
Newly opened or reopened sites		1			—
Closed or divested sites		(1	)		(2	)
Number of sites at end of period		280			296

Full Year and Second Quarter 2025 Guidance Range

The Company currently expects second quarter 2025 Adjusted EBITDA to range between $70 million and $80 million, with an assumed range of average total retail fuel margin from 42.5 to 44.5 cents per gallon. The Company is maintaining its full year 2025 Adjusted EBITDA range of $233 million to $253 million, with an assumed range of average total retail fuel margin from 40 to 42 cents per gallon.

The Company is not providing guidance on net income at this time due to the volatility of certain required inputs that are not available without unreasonable efforts, including future fair value adjustments associated with its stock price, as well as depreciation and amortization related to its capital allocation as part of its focus on accelerating organic growth.

Conference Call and Webcast Details

The Company will host a conference call today, May 8, 2025, to discuss these results at 5:00 p.m. Eastern Time. Investors and analysts interested in participating in the live call can dial 888-396-8049 or 416-764-8646.

A simultaneous, live webcast will also be available on the Investor Relations section of the Company’s website at https://www.arkocorp.com/news-events/ir-calendar. The webcast will be archived for 30 days.

About ARKO Corp.

ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations, and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

Forward-Looking Statements

This document includes certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s expected financial and operational results and the related assumptions underlying its expected results. These forward-looking statements are distinguished by use of words such as “accretive,” “anticipate,” “aim,” “believe,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and the negative of these terms, and similar references to future periods. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to, among other things, changes in economic, business and market conditions; the Company’s ability to maintain the listing of its common stock and warrants on the Nasdaq Stock Market; changes in its strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; expansion plans and opportunities; changes in the markets in which it competes; changes in applicable laws or regulations, including those relating to environmental matters; market conditions and global and economic factors beyond its control; and the outcome of any known or unknown litigation and regulatory proceedings. Detailed information about these factors and additional important factors can be found in the documents that the Company files with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K. Forward-looking statements speak only as of the date the statements were made. The Company does not undertake an obligation to update forward-looking information, except to the extent required by applicable law.

Use of Non-GAAP Measures

The Company discloses certain measures on a “same store basis,” which is a non-GAAP measure. Information disclosed on a “same store basis” excludes the results of any store that is not a “same store” for the applicable period. A store is considered a same store beginning in the first quarter in which the store had a full quarter of activity in the prior year. The Company believes that this information provides greater comparability regarding its ongoing operating performance. Neither this measure nor those described below should be considered an alternative to measurements presented in accordance with generally accepted accounting principles in the United States (“GAAP”).

The Company defines EBITDA as net income (loss) before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA further adjusts EBITDA by excluding the gain or loss on disposal of assets, impairment charges, acquisition and divestiture costs, share-based compensation expense, other non-cash items, and other unusual or non-recurring charges. Both EBITDA and Adjusted EBITDA are non-GAAP financial measures.

The Company uses EBITDA and Adjusted EBITDA for operational and financial decision-making and believe these measures are useful in evaluating its performance because they eliminate certain items that it does not consider indicators of its operating performance. EBITDA and Adjusted EBITDA are also used by many of its investors, securities analysts, and other interested parties in evaluating its operational and financial performance across reporting periods. The Company believes that the presentation of EBITDA and Adjusted EBITDA provides useful information to investors by allowing an understanding of key measures that it uses internally for operational decision-making, budgeting, evaluating acquisition targets, and assessing its operating performance.

EBITDA and Adjusted EBITDA are not recognized terms under GAAP and should not be considered as a substitute for net income (loss) or any other financial measure presented in accordance with GAAP. These measures have limitations as analytical tools and should not be considered in isolation or as substitutes for analysis of its results as reported under GAAP. The Company strongly encourages investors to review its financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.

Because non-GAAP financial measures are not standardized, same store measures, EBITDA and Adjusted EBITDA, as defined by the Company, may not be comparable to similarly titled measures reported by other companies. It therefore may not be possible to compare the Company’s use of these non-GAAP financial measures with those used by other companies.

Company Contact
Jordan Mann
ARKO Corp.
investors@gpminvestments.com

Investor Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
ARKO@elevate-ir.com


	Condensed Consolidated Statements of Operations
	For the Three Months Ended March 31,
	2025			2024
	(in thousands)
Revenues:
Fuel revenue	$	1,446,916		$	1,631,332
Merchandise revenue		354,485			414,655
Other revenues, net		27,504			26,467
Total revenues		1,828,905			2,072,454
Operating expenses:
Fuel costs		1,325,056			1,502,302
Merchandise costs		236,915			279,737
Site operating expenses		199,981			218,931
General and administrative expenses		41,613			42,158
Depreciation and amortization		34,887			31,716
Total operating expenses		1,838,452			2,074,844
Other expenses, net		2,217			2,476
Operating loss		(11,764	)		(4,866	)
Interest and other financial income		9,475			22,014
Interest and other financial expenses		(23,326	)		(24,471	)
Loss before income taxes		(25,615	)		(7,323	)
Income tax benefit		12,922			6,707
Income from equity investment		21			22
Net loss attributable to ARKO Corp.	$	(12,672	)	$	(594	)
Series A redeemable preferred stock dividends		(1,418	)		(1,414	)
Net loss attributable to common shareholders	$	(14,090	)	$	(2,008	)
Net loss per share attributable to common shareholders – basic and diluted	$	(0.12	)	$	(0.02	)
Weighted average shares outstanding:
Basic and diluted		115,883			117,275


	Condensed Consolidated Balance Sheets
	March 31, 2025			December 31, 2024
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	265,420		$	261,758
Restricted cash		24,117			30,650
Short-term investments		5,665			5,330
Trade receivables, net		110,046			95,832
Inventory		220,650			231,225
Other current assets		93,332			97,413
Total current assets		719,230			722,208
Non-current assets:
Property and equipment, net		744,524			747,548
Right-of-use assets under operating leases		1,366,100			1,386,244
Right-of-use assets under financing leases, net		155,360			157,999
Goodwill		299,973			299,973
Intangible assets, net		176,755			182,355
Equity investment		3,029			3,009
Deferred tax asset		83,075			67,689
Other non-current assets		54,509			53,633
Total assets	$	3,602,555		$	3,620,658
Liabilities
Current liabilities:
Long-term debt, current portion	$	14,011		$	12,944
Accounts payable		196,847			190,212
Other current liabilities		167,337			159,239
Operating leases, current portion		73,250			71,580
Financing leases, current portion		11,486			11,515
Total current liabilities		462,931			445,490
Non-current liabilities:
Long-term debt, net		866,097			868,055
Asset retirement obligation		87,712			87,375
Operating leases		1,390,419			1,408,293
Financing leases		209,536			211,051
Other non-current liabilities		230,634			223,528
Total liabilities		3,247,329			3,243,792

Series A redeemable preferred stock		100,000			100,000

Shareholders’ equity:
Common stock		12			12
Treasury stock		(113,514	)		(106,123	)
Additional paid-in capital		280,017			276,681
Accumulated other comprehensive income		9,119			9,119
Retained earnings		79,592			97,177
Total shareholders’ equity		255,226			276,866
Total liabilities, redeemable preferred stock and equity	$	3,602,555		$	3,620,658


	Condensed Consolidated Statements of Cash Flows
	For the Three Months Ended March 31,
	2025			2024
	(in thousands)
Cash flows from operating activities:
Net loss	$	(12,672	)	$	(594	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		34,887			31,716
Deferred income taxes		(15,386	)		(10,075	)
Loss on disposal of assets and impairment charges		1,528			2,664
Foreign currency loss		16			27
Gain from issuance of shares as payment of deferred consideration related to business acquisition		—			(2,681	)
Gain from settlement related to business acquisition		—			(6,356	)
Amortization of deferred financing costs and debt discount		664			664
Amortization of deferred income		(4,990	)		(1,946	)
Accretion of asset retirement obligation		608			616
Non-cash rent		3,307			3,484
Charges to allowance for credit losses		217			327
Income from equity investment		(21	)		(22	)
Share-based compensation		3,336			3,329
Fair value adjustment of financial assets and liabilities		(7,059	)		(10,772	)
Other operating activities, net		20			624
Changes in assets and liabilities:
Increase in trade receivables		(14,431	)		(24,304	)
Decrease in inventory		10,575			188
Decrease in other assets		5,325			5,095
Increase in accounts payable		6,694			21,347
Increase (decrease) in other current liabilities		17,370			(4,152	)
Decrease in asset retirement obligation		(317	)		(55	)
Increase in non-current liabilities		13,731			3,631
Net cash provided by operating activities		43,402			12,755
Cash flows from investing activities:
Purchase of property and equipment		(27,392	)		(29,228	)
Proceeds from sale of property and equipment		473			2,039
Prepayment for acquisition		—			(1,000	)
Loans to equity investment, net		15			14
Net cash used in investing activities		(26,904	)		(28,175	)
Cash flows from financing activities:
Receipt of long-term debt, net		—			41,588
Repayment of debt		(5,690	)		(6,635	)
Principal payments on financing leases		(1,380	)		(1,135	)
Early settlement of deferred consideration related to business acquisition		—			(17,155	)
Common stock repurchased		(7,382	)		(31,921	)
Dividends paid on common stock		(3,495	)		(3,596	)
Dividends paid on redeemable preferred stock		(1,418	)		(1,414	)
Net cash used in financing activities		(19,365	)		(20,268	)
Net decrease in cash and cash equivalents and restricted cash		(2,867	)		(35,688	)
Effect of exchange rate on cash and cash equivalents and restricted cash		(4	)		(19	)
Cash and cash equivalents and restricted cash, beginning of period		292,408			241,421
Cash and cash equivalents and restricted cash, end of period	$	289,537		$	205,714

Supplemental Disclosure of Non-GAAP Financial Information

	Reconciliation of EBITDA and Adjusted EBITDA
	For the Three Months Ended March 31,
	2025			2024
	(in thousands)
Net loss	$	(12,672	)	$	(594	)
Interest and other financing expenses, net		13,851			2,457
Income tax benefit		(12,922	)		(6,707	)
Depreciation and amortization		34,887			31,716
EBITDA		23,144			26,872
Acquisition and divestiture costs (a)		1,150			680
Loss on disposal of assets and impairment charges (b)		1,528			2,664
Share-based compensation expense (c)		3,336			3,329
Income from equity investment (d)		(21	)		(22	)
Fuel and franchise taxes received in arrears (e)		—			(565	)
Adjustment to contingent consideration (f)		(66	)		18
Accrual related to potential wage and hour claim (g)		2,023			—
Other (h)		(239	)		189
Adjusted EBITDA	$	30,855		$	33,165

Additional information
Non-cash rent expense (i)	$	3,307		$	3,484

(a) Eliminates costs incurred that are directly attributable to business acquisitions and divestitures (including conversion of retail stores to dealer sites) and salaries of employees whose primary job function is to execute the Company’s acquisition and divestiture strategy and facilitate integration of acquired operations.
(b) Eliminates the non-cash loss from the sale or disposal of property and equipment, the loss recognized upon the sale of related leased assets, and impairment charges on property and equipment and right-of-use assets related to closed and non-performing sites.
(c) Eliminates non-cash share-based compensation expense related to the equity incentive program in place to incentivize, retain, and motivate our employees and members of the Board.
(d) Eliminates our share of income attributable to our unconsolidated equity investment.
(e) Eliminates the receipt of historical fuel and franchise tax amounts for multiple prior periods.
(f) Eliminates fair value adjustments to the contingent consideration owed to the seller for the 2020 Empire acquisition.
(g) Eliminates non-recurring expenses accrued in net loss related to a potential wage and hour collective action.
(h) Eliminates other unusual or non-recurring items that we do not consider to be meaningful in assessing operating performance.
(i) Non-cash rent expense reflects the extent to which GAAP rent expense recognized exceeded (or was less than) cash rent payments. GAAP rent expense varies depending on the terms of the Company’s lease portfolio. For newer leases, rent expense recognized typically exceeds cash rent payments, whereas, for more mature leases, rent expense recognized is typically less than cash rent payments.

Supplemental Disclosures of Segment Information

Retail Segment

	For the Three Months Ended March 31,
	2025		2024
	(in thousands)
Revenues:
Fuel revenue	$	690,686	$	824,428
Merchandise revenue		354,485		414,655
Other revenues, net		14,547		16,679
Total revenues		1,059,718		1,255,762
Operating expenses:
Fuel costs ¹		605,413		731,495
Merchandise costs		236,915		279,737
Site operating expenses		177,239		198,017
Total operating expenses		1,019,567		1,209,249
Operating income	$	40,151	$	46,513

¹Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.

The table below shows financial information and certain key metrics of the SpeedyQ Acquisition in the retail segment, for which there is no comparable information for the prior period.

	For the Three Months Ended March 31, 2025
	SpeedyQ ¹
	(in thousands)
Date of Acquisition:	Apr 9, 2024
Revenues:
Fuel revenue	$	9,220
Merchandise revenue		5,679
Other revenues, net		254
Total revenues		15,153
Operating expenses:
Fuel costs ²		7,951
Merchandise costs		3,874
Site operating expenses		3,281
Total operating expenses		15,106
Operating income	$	47
Fuel gallons sold		3,091
Fuel contribution ³	$	1,269
Merchandise contribution ⁴	$	1,805
Merchandise margin ⁵		31.8	%

¹Acquisition of 21 SpeedyQ retail stores.
²Excludes the estimated fixed margin paid to GPMP for the cost of fuel.
³Calculated as fuel revenue less fuel costs.
⁴Calculated as merchandise revenue less merchandise costs.
⁵Calculated as merchandise contribution divided by merchandise revenue.

Wholesale Segment

	For the Three Months Ended March 31,
	2025		2024
	(in thousands)
Revenues:
Fuel revenue	$	629,492	$	664,514
Other revenues, net		10,352		6,858
Total revenues		639,844		671,372
Operating expenses:
Fuel costs ¹		609,445		643,784
Site operating expenses		11,769		9,299
Total operating expenses		621,214		653,083
Operating income	$	18,630	$	18,289

¹Excludes the estimated fixed margin or fixed fee paid to GPMP for the cost of fuel.

Fleet Fueling Segment

	For the Three Months Ended March 31,
	2025		2024
	(in thousands)
Revenues:
Fuel revenue	$	118,406	$	132,193
Other revenues, net		2,118		2,385
Total revenues		120,524		134,578
Operating expenses:
Fuel costs ¹		103,104		118,277
Site operating expenses		6,428		6,543
Total operating expenses		109,532		124,820
Operating income	$	10,992	$	9,758

¹Excludes the estimated fixed fee paid to GPMP for the cost of fuel.

The MIL Network –

May 9, 2025

MIL-OSI: Microchip Technology Announces Financial Results For Fourth Quarter and Fiscal Year 2025

Source: GlobeNewswire (MIL-OSI)

For the quarter ended March 31, 2025

Net sales of $970.5 million, declined 5.4% sequentially and 26.8% from the year ago quarter. The midpoint of our guidance provided on February 6, 2025 was net sales of $960.0 million.
On a GAAP basis: gross profit of 51.6%; operating loss of $100.3 million and 10.3% of net sales; net loss attributable to common stockholders of $156.8 million; and loss of $0.29 per diluted share. Our guidance provided on February 6, 2025 was for GAAP loss per diluted share of $0.24 to $0.14 and did not include the restructuring charges that we announced on March 3, 2025 or the preferred stock dividend related to our mandatory convertible preferred stock financing in March 2025.
On a Non-GAAP basis: gross profit of 52.0%; operating income of $136.0 million and 14.0% of net sales; net income of $61.4 million; and EPS of $0.11 per diluted share. Our guidance provided on February 6, 2025 was for Non-GAAP EPS per diluted share of $0.05 to $0.15.
Returned approximately $244.8 million to stockholders in the March quarter through dividends.
Quarterly dividend on common stock declared for the June quarter of 45.5 cents per share.

For fiscal year 2025

Net sales of $4.402 billion decreased 42.3% over the prior year.
On a GAAP basis: gross profit of 56.1%; operating income of $296.3 million; net loss attributable to common stockholders of $2.7 million, adversely impacted by purchase accounting adjustments associated with our previous acquisitions, restructuring charges and the preferred stock dividend related to our mandatory convertible preferred stock financing in March 2025 and loss of $0.01 per diluted share.
On a Non-GAAP basis: gross profit of 57.0%; operating income of $1.078 billion and 24.5% of net sales; net income of $708.8 million and EPS of $1.31 per diluted share.
Paid down $356.2 million of total debt and returned $1.066 billion to shareholders through dividends and share repurchases.

CHANDLER, Ariz., May 08, 2025 (GLOBE NEWSWIRE) — – (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today reported results for the three months and fiscal year ended March 31, 2025.

Steve Sanghi, Microchip’s CEO and President commented that “Our March quarter revenue of $970.5 million exceeded the midpoint of our guidance, and we believe marks the bottom of this prolonged industry down cycle for Microchip. The decisive actions we have taken under our nine-point-plan are enhancing our operational capabilities through more efficient manufacturing, improving inventory management, and a renewed strategic focus. As we move forward from a challenging fiscal year, we believe Microchip is better positioned to capitalize on growth opportunities as market conditions evolve.”

Mr. Sanghi added, “A key highlight this quarter has been our inventory reduction strategy, with overall inventory dollars down $62.8 million, distribution inventory days reduced by 4 days to 33 days, and inventory days on our balance sheet decreased by 15 days from levels at December 31, 2024. We expect even more substantial inventory reduction in the June quarter as our manufacturing optimization actions are near completion.”

Eric Bjornholt, Microchip’s Chief Financial Officer, said, “During the quarter, we executed multiple financial actions that strengthened our balance sheet. These included reducing our total net debt by roughly $1.30 billion with a mandatory convertible preferred offering. We also amended and extended our revolving line of credit with more favorable terms and financial flexibility. Our financing actions are helping to maintain our investment grade rating. We believe these strategic financial moves, alongside our disciplined cost management initiatives, position us well to navigate current market challenges while maintaining financial flexibility for future growth.”

Rich Simoncic, Microchip’s Chief Operating Officer, said, “Our strategic initiatives continue to deliver value across markets, with our new Switchtec PCIe switches, advanced touchscreen controllers, and AI Coding software assistant demonstrating our commitment to innovation. By expanding our offerings in atomic clock technology, enhancing our microprocessors, and expanding our 10Base-T1S solutions, we believe we are well-positioned to address emerging opportunities in automotive, industrial, and e-mobility markets while accelerating our customers’ development cycles.”

Mr. Sanghi concluded, “In the March 2025 quarter, we achieved our first positive book-to-bill ratio in nearly three years; and we have clearly reached an inflection point. Additionally, our bookings in the month of April were higher than any month in the March quarter. Balancing this with geopolitical concerns and the non-quantifiable impact of tariffs, we expect our net sales in the June 2025 quarter to be between $1.02 billion and $1.07 billion. Our focus is on translating the momentum we are seeing in our business into enhanced shareholder value while maintaining our dividend commitment as we return to growth.”

The following table summarizes Microchip’s reported results for the three months and fiscal year ended March 31, 2025.

	Three Months Ended March 31, 2025⁽¹⁾				Twelve Months Ended March 31, 2025⁽¹⁾
Net sales	$970.5				$4,401.6
	GAAP	%	Non-GAAP⁽²⁾	%	GAAP	%	Non-GAAP⁽²⁾	%
Gross profit	$501.1	51.6%	$504.6	52.0%	$2,467.9	56.1%	$2,509.8	57.0%
Operating (loss) income	$(100.3)	(10.3)%	$136.0	14.0%	$296.3	6.7%	$1,078.0	24.5%
Other expense	$(68.0)		$(64.9)		$(257.4)		$(252.2)
Income tax (benefit) provision	$(13.7)		$9.7		$39.4		$117.0
Net (loss) income	$(154.6)		$61.4		$(0.5)		$708.8
Dividends on preferred stock	$(2.2)		—		$(2.2)		—
Net (loss) income attributable to common stockholders	$(156.8)	(16.2)%	$61.4	6.3%	$(2.7)	(0.1)%	$708.8	16.1%
Diluted net (loss) income per common share	$(0.29)		$0.11		$(0.01)		$1.31

_{⁽¹⁾ In millions, except per share amounts and percentages of net sales.}
_{⁽²⁾ See the “Use of Non-GAAP Financial Measures” section of this release.}

Net sales for the fourth quarter of fiscal 2025 were $970.5 million, down 26.8% from net sales of $1.326 billion in the prior year’s fourth fiscal quarter.

GAAP net loss attributable to common stockholders for the fourth quarter of fiscal 2025 was $156.8 million, or $0.29 per diluted share, down from GAAP net income attributable to common stockholders of $154.7 million, or $0.28 per diluted share, in the prior year’s fourth fiscal quarter. For the fourth quarters of fiscal 2025 and fiscal 2024, GAAP results were adversely impacted by amortization of acquired intangible assets associated with our previous acquisitions. The fourth quarter of fiscal 2025 GAAP results were adversely impacted by the restructuring charges that were announced on March 3, 2025 and the preferred stock dividend related to our mandatory convertible preferred stock financing in March 2025.

Non-GAAP net income for the fourth quarter of fiscal 2025 was $61.4 million, or $0.11 per diluted share, down from non-GAAP net income of $310.3 million, or $0.57 per diluted share, in the prior year’s fourth fiscal quarter. For the fourth quarters of fiscal 2025 and fiscal 2024, our non-GAAP results exclude the effect of share-based compensation, restructuring charges, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, losses on the settlement of debt, and dividends on preferred stock. For the fourth quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. A reconciliation of our non-GAAP and GAAP results is included in this press release.

Net sales for the fiscal year ended March 31, 2025 were $4.402 billion, a decrease of 42.3% from net sales of $7.634 billion in the prior fiscal year.

GAAP net loss attributable to common stockholders for the fiscal year ended March 31, 2025 was $2.7 million, or $0.01 per diluted share, a decrease from net income of $1.907 billion, or $3.48 per diluted share in the prior fiscal year. Fiscal 2025 and fiscal 2024, GAAP net loss and GAAP net income results were significantly adversely impacted by amortization of acquired intangible assets associated with our previous acquisitions and loss on debt settlement associated with our debt refinancing activities. The fiscal 2025 GAAP net loss was adversely impacted by the restructuring charges that were announced on March 3, 2025, cybersecurity incident expenses and the preferred stock dividend related to our mandatory convertible preferred stock financing in March 2025.

Non-GAAP net income for the fiscal year ended March 31, 2025 was $708.8 million, a decrease of 73.7% from net income of $2.698 billion in the prior fiscal year. Non-GAAP earnings per diluted share for the fiscal year ended March 31, 2025 were $1.31, a decrease of 73.4% from the $4.92 per diluted share in the prior fiscal year. See the “Use of Non-GAAP Financial Measures” section of this release.

Microchip announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share, which is payable on June 5, 2025 to stockholders of record on May 22, 2025. The Microchip Board also declared a quarterly cash dividend on its 7.50% Series A Mandatory Convertible Preferred Stock of $16.875 per share (which represents $0.8438 per depositary share) which is payable on June 15, 2025 to stockholders of record on June 1, 2025.

First Quarter Fiscal Year 2026 Outlook:

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially.

	Microchip Consolidated Guidance
Net Sales	$1.020 to $1.070 billion
	GAAP⁽⁵⁾	Non-GAAP Adjustments⁽¹⁾	Non-GAAP⁽¹⁾
Gross Profit	51.2% to 53.2%	$9.8 to $10.8 million	52.2% to 54.2%
Operating Expenses⁽²⁾	49.3% to 51.1%	$166.1 to $170.1 million	33.4% to 34.8%
Operating Income	0.2% to 3.9%	$175.9 to $180.9 million	17.4% to 20.8%
Other Expense, net	$53.2 to $54.8 million	$(0.2) to $0.2 million	$53.0 to $55.0 million
Income Tax (Benefit) Provision	$(5.3) to $(1.7) million⁽³⁾	$20.0 to $22.0 million	$14.7 to $20.3 million⁽⁴⁾
Net (loss) income	$(47.9) to $(9.8) million	$155.7 to $159.0 million	$107.8 to $149.2 million
Dividends on preferred stock	$(27.8) million	$27.8 million	—
Net (loss) income attributable to common stockholders	$(75.7) to $(37.6) million	$183.5 to $186.8 million	$107.8 to $149.2 million
Diluted Common Shares Outstanding	Approximately 538.9 million shares	31.4 to 32.4 million shares	Approximately 570.3 to 571.3 million shares
Diluted net (loss) per common share	$(0.15) to $(0.07)	$0.33	$0.18 to $0.26

_{⁽¹⁾ See the “Use of Non-GAAP Financial Measures” section of this release for information regarding our non-GAAP guidance.}
_{⁽²⁾ We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending June 30, 2025. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending June 30, 2025.}
_{⁽³⁾ The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.}
_{⁽⁴⁾ Represents the expected cash tax rate for fiscal 2026, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.}
_{⁽⁵⁾ Our GAAP guidance excludes the impact of any potential charges related to our ongoing evaluation of restructuring activities.}

Capital expenditures for the quarter ending June 30, 2025 are expected to be between $20 million and $25 million. Capital expenditures for all of fiscal 2026 are expected to be at or below $100 million. Consistent with the slowing macroeconomic environment in fiscal 2025, we have paused most of our factory expansion actions and reduced our planned capital investments through fiscal 2026. However, we are adding capital equipment to selectively expand our production capacity and add research and development equipment.

Under the GAAP revenue recognition standard, we are required to recognize revenue when control of the product changes from us to a customer or distributor. We focus our sales and marketing efforts on creating demand for our products in the end markets we serve and not on moving inventory into our distribution network. We also manage our manufacturing and supply chain operations, including our distributor relationships, towards the goal of having our products available at the time and location the end customer desires.

Use of Non-GAAP Financial Measures: Our non-GAAP adjustments, where applicable, include the effect of share-based compensation, restructuring charges, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, losses on the settlement of debt, and dividends on preferred stock. For the fourth quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act.

We are required to estimate the cost of certain forms of share-based compensation, including restricted stock units, and our employee stock purchase plan, and to record a commensurate expense in our income statement. Share-based compensation expense is a non-cash expense that varies in amount from period to period and is affected by the price of our stock at the date of grant. The price of our stock is affected by market forces that are difficult to predict and are not within the control of management. Our other non-GAAP adjustments are either non-cash expenses, unusual or infrequent items, or other expenses related to transactions. Management excludes all of these items from its internal operating forecasts and models.

We are using non-GAAP operating expenses in dollars, including non-GAAP research and development expenses and non-GAAP selling, general and administrative expenses, non-GAAP other expense, net, and non-GAAP income tax rate, which exclude the items noted above, as applicable, to permit additional analysis of our performance.

Management believes these non-GAAP measures are useful to investors because they enhance the understanding of our historical financial performance and comparability between periods. Many of our investors have requested that we disclose this non-GAAP information because they believe it is useful in understanding our performance as it excludes non-cash and other charges that many investors feel may obscure our underlying operating results. Management uses non-GAAP measures to manage and assess the profitability of our business and for compensation purposes. We also use our non-GAAP results when developing and monitoring our budgets and spending. Our determination of these non-GAAP measures might not be the same as similarly titled measures used by other companies, and it should not be construed as a substitute for amounts determined in accordance with GAAP. There are limitations associated with using these non-GAAP measures, including that they exclude financial information that some may consider important in evaluating our performance. Management compensates for this by presenting information on both a GAAP and non-GAAP basis for investors and providing reconciliations of the GAAP and non-GAAP results.

Generally, gross profit fluctuates over time, driven primarily by the mix of products sold and licensing revenue; variances in manufacturing yields; fixed cost absorption; wafer fab loading levels; costs of wafers from foundries; inventory reserves; pricing pressures in our non-proprietary product lines; and competitive and economic conditions. Operating expenses fluctuate over time, primarily due to net sales and profit levels.

Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures and our mandatory convertible preferred stock (additional information regarding our share count is available in the investor relations section of our website under the heading “Supplemental Information”), and repurchases or issuances of shares of our common stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the June 2025 quarter between $45 and $55 per share (however, we make no prediction as to what our actual share price will be for such period or any other period).

MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts)

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Net sales	$	970.5		$	1,325.8		$	4,401.6		$	7,634.4
Cost of sales		469.4			535.9			1,933.7			2,638.7
Gross profit		501.1			789.9			2,467.9			4,995.7

Research and development		255.2			240.3			983.8			1,097.4
Selling, general and administrative		152.0			161.8			617.7			734.2
Amortization of acquired intangible assets		122.6			151.2			490.9			605.4
Special charges (income) and other, net		71.6			(16.9	)		79.2			(12.3	)
Operating expenses		601.4			536.4			2,171.6			2,424.7

Operating (loss) income		(100.3	)		253.5			296.3			2,571.0

Other expense, net		(68.0	)		(53.8	)		(257.4	)		(205.1	)
(Loss) income before income taxes		(168.3	)		199.7			38.9			2,365.9
Income tax (benefit) provision		(13.7	)		45.0			39.4			459.0
Net (loss) income		(154.6	)		154.7			(0.5	)		1,906.9
Dividends on preferred stock		(2.2	)		—			(2.2	)		—
Net (loss) income attributable to common stockholders	$	(156.8	)	$	154.7		$	(2.7	)	$	1,906.9

Basic net (loss) income per common share	$	(0.29	)	$	0.29		$	(0.01	)	$	3.52
Diluted net (loss) income per common share	$	(0.29	)	$	0.28		$	(0.01	)	$	3.48

Basic common shares outstanding		538.2			538.9			537.3			542.0
Diluted common shares outstanding		538.2			544.8			537.3			548.0

MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in millions)

ASSETS
	March 31,		March 31,
	2025		2024
Cash and short-term investments	$	771.7	$	319.7
Accounts receivable, net		689.7		1,143.7
Inventories		1,293.5		1,316.0
Other current assets		236.4		233.6
Total current assets		2,991.3		3,013.0

Property, plant and equipment, net		1,183.7		1,194.6
Other assets		11,199.6		11,665.6
Total assets	$	15,374.6	$	15,873.2

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued liabilities	$	1,155.1	$	1,520.0
Current portion of long-term debt		—		999.4
Total current liabilities		1,155.1		2,519.4

Long-term debt		5,630.4		5,000.4
Long-term income tax payable		633.4		649.2
Long-term deferred tax liability		33.8		28.8
Other long-term liabilities		843.6		1,017.6

Stockholders’ equity		7,078.3		6,657.8
Total liabilities and stockholders’ equity	$	15,374.6	$	15,873.2

MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(in millions, except per share amounts and percentages; unaudited)

RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Gross profit, as reported	$	501.1		$	789.9		$	2,467.9		$	4,995.7
Share-based compensation expense		3.5			5.4			21.8			25.6
Cybersecurity incident expenses		—			—			20.1			—
Other manufacturing adjustments		—			4.3			—			4.3
Non-GAAP gross profit	$	504.6		$	799.6		$	2,509.8		$	5,025.6
GAAP gross profit percentage		51.6	%		59.6	%		56.1	%		65.4	%
Non-GAAP gross profit percentage		52.0	%		60.3	%		57.0	%		65.8	%

RECONCILIATION OF GAAP RESEARCH AND DEVELOPMENT EXPENSES TO NON-GAAP RESEARCH AND DEVELOPMENT EXPENSES

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Research and development expenses, as reported	$	255.2		$	240.3		$	983.8		$	1,097.4
Share-based compensation expense		(25.6	)		(23.3	)		(104.6	)		(94.3	)
Other adjustments		—			—			—			(0.5	)
Non-GAAP research and development expenses	$	229.6		$	217.0		$	879.2		$	1,002.6
GAAP research and development expenses as a percentage of net sales		26.3	%		18.1	%		22.4	%		14.4	%
Non-GAAP research and development expenses as a percentage of net sales		23.7	%		16.4	%		20.0	%		13.1	%

RECONCILIATION OF GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES TO NON-GAAP SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Selling, general and administrative expenses, as reported	$	152.0		$	161.8		$	617.7		$	734.2
Share-based compensation expense		(11.6	)		(14.1	)		(54.0	)		(57.6	)
Cybersecurity incident expenses		—			—			(1.3	)		—
Other adjustments		—			(0.8	)		(7.3	)		(1.3	)
Professional services associated with certain legal matters		(1.4	)		(0.3	)		(2.5	)		(1.5	)
Non-GAAP selling, general and administrative expenses	$	139.0		$	146.6		$	552.6		$	673.8
GAAP selling, general and administrative expenses as a percentage of net sales		15.7	%		12.2	%		14.0	%		9.6	%
Non-GAAP selling, general and administrative expenses as a percentage of net sales		14.3	%		11.1	%		12.6	%		8.8	%

RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Operating expenses, as reported	$	601.4		$	536.4		$	2,171.6		$	2,424.7
Share-based compensation expense		(37.2	)		(37.4	)		(158.6	)		(151.9	)
Cybersecurity incident expenses		—			—			(1.3	)		—
Other adjustments		—			(0.8	)		(7.3	)		(1.8	)
Professional services associated with certain legal matters		(1.4	)		(0.3	)		(2.5	)		(1.5	)
Amortization of acquired intangible assets ⁽¹⁾		(122.6	)		(151.2	)		(490.9	)		(605.4	)
Special charges (income) and other, net		(71.6	)		16.9			(79.2	)		12.3
Non-GAAP operating expenses	$	368.6		$	363.6		$	1,431.8		$	1,676.4
GAAP operating expenses as a percentage of net sales		62.0	%		40.5	%		49.3	%		31.8	%
Non-GAAP operating expenses as a percentage of net sales		38.0	%		27.4	%		32.5	%		22.0	%

_{⁽¹⁾ Amortization of acquired intangible assets consists of core and developed technology and customer-related acquired intangible assets in connection with business combinations. Such charges are excluded for purposes of calculating certain non-GAAP measures.}

RECONCILIATION OF GAAP OPERATING (LOSS) INCOME TO NON-GAAP OPERATING INCOME

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Operating (loss) income, as reported	$	(100.3	)	$	253.5		$	296.3		$	2,571.0
Share-based compensation expense		40.7			42.8			180.4			177.5
Cybersecurity incident expenses		—			—			21.4			—
Other adjustments		—			0.8			7.3			1.8
Professional services associated with certain legal matters		1.4			0.3			2.5			1.5
Other manufacturing adjustments		—			4.3			—			4.3
Amortization of acquired intangible assets⁽¹⁾		122.6			151.2			490.9			605.4
Special charges (income) and other, net		71.6			(16.9	)		79.2			(12.3	)
Non-GAAP operating income	$	136.0		$	436.0		$	1,078.0		$	3,349.2
GAAP operating (loss) income as a percentage of net sales	(10.3) %				19.1	%		6.7	%		33.7	%
Non-GAAP operating income as a percentage of net sales		14.0	%		32.9	%		24.5	%		43.9	%

RECONCILIATION OF GAAP OTHER EXPENSE, NET TO NON-GAAP OTHER EXPENSE, NET

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Other expense, net, as reported	$	(68.0	)	$	(53.8	)	$	(257.4	)	$	(205.1	)
Loss on settlement of debt		1.4			—			1.7			12.2
Loss on available-for-sale investments		1.7			—			3.5			—
Non-GAAP other expense, net	$	(64.9	)	$	(53.8	)	$	(252.2	)	$	(192.9	)
GAAP other expense, net, as a percentage of net sales	(7.0) %			(4.1) %			(5.8) %			(2.7) %
Non-GAAP other expense, net, as a percentage of net sales	(6.7) %			(4.1) %			(5.7) %			(2.5) %

RECONCILIATION OF GAAP INCOME TAX (BENEFIT) PROVISION TO NON-GAAP INCOME TAX PROVISION

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Income tax (benefit) provision as reported	$	(13.7	)	$	45.0		$	39.4		$	459.0
Income tax rate, as reported		8.1	%		22.5	%		101.3	%		19.4	%
Other non-GAAP tax adjustment		23.4			26.9			77.6			(0.3	)
Non-GAAP income tax provision	$	9.7		$	71.9		$	117.0		$	458.7
Non-GAAP income tax rate		13.6	%		18.8	%		14.2	%		14.5	%

RECONCILIATION OF GAAP NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS AND GAAP DILUTED NET (LOSS) INCOME PER COMMON SHARE TO NON-GAAP NET INCOME AND NON-GAAP DILUTED NET INCOME PER COMMON SHARE

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
Net (loss) income attributable to common stockholders, as reported	$	(156.8	)	$	154.7		$	(2.7	)	$	1,906.9
Dividends on preferred stock		2.2			—			2.2			—
Share-based compensation expense		40.7			42.8			180.4			177.5
Cybersecurity incident expenses		—			—			21.4			—
Other adjustments		—			0.8			7.3			1.8
Professional services associated with certain legal matters		1.4			0.3			2.5			1.5
Other manufacturing adjustments		—			4.3			—			4.3
Amortization of acquired intangible assets		122.6			151.2			490.9			605.4
Special charges (income) and other, net		71.6			(16.9	)		79.2			(12.3	)
Loss on settlement of debt		1.4			—			1.7			12.2
Loss on available-for-sale investments		1.7			—			3.5			—
Other non-GAAP tax adjustment		(23.4	)		(26.9	)		(77.6	)		0.3
Non-GAAP net income	$	61.4		$	310.3		$	708.8		$	2,697.6
GAAP net (loss) income attributable to common stockholders as a percentage of net sales	(16.2)%				11.7	%	(0.1)%				25.0	%
Non-GAAP net income as a percentage of net sales		6.3	%		23.4	%		16.1	%		35.3	%
Diluted net (loss) income per common share, as reported	$	(0.29	)	$	0.28		$	(0.01	)	$	3.48
Non-GAAP diluted net income per common share	$	0.11		$	0.57		$	1.31		$	4.92
Diluted common shares outstanding, as reported		538.2			544.8			537.3			548.0
Diluted common shares outstanding non-GAAP		543.5			544.8			542.5			548.0

RECONCILIATION OF GAAP DILUTED COMMON SHARES OUTSTANDING TO NON-GAAP DILUTED COMMON SHARES OUTSTANDING

	Three Months Ended March 31,		Twelve Months Ended March 31,
	2025	2024	2025	2024
Diluted common shares outstanding, as reported	538.2	544.8	537.3	548.0
Dilutive effect of RSUs⁽¹⁾	2.7	—	4.0	—
Dilutive effect of 2015 Senior Convertible Debt⁽¹⁾	—	—	0.1	—
Dilutive effect of 2017 Senior Convertible Debt⁽¹⁾	0.3	—	0.5	—
Dilutive effect of preferred stock⁽¹⁾	2.3	—	0.6	—
Diluted common shares outstanding non-GAAP	543.5	544.8	542.5	548.0

_{⁽¹⁾The non-GAAP adjustment includes the impact that is anti-dilutive on a GAAP basis for the fiscal quarter ended March 31, 2025 and fiscal year ended March 31, 2025 as the Company generated a GAAP net loss in the respective periods.}

RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

	Three Months Ended March 31,						Twelve Months Ended March 31,
		2025			2024			2025			2024
GAAP cash flow from operations, as reported	$	205.9		$	430.0		$	898.1		$	2,892.7
Capital expenditures		(14.2	)		(40.1	)		(126.0	)		(285.1	)
Free cash flow	$	191.7		$	389.9		$	772.1		$	2,607.6
GAAP cash flow from operations as a percentage of net sales		21.2	%		32.4	%		20.4	%		37.9	%
Free cash flow as a percentage of net sales		19.8	%		29.4	%		17.5	%		34.2	%

Microchip will host a conference call today, May 8, 2025 at 5:00 p.m. (Eastern Time) to discuss this release. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until June 6, 2025.

A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) on May 8, 2025 and will remain available until 5:00 p.m. (Eastern Time) on June 6, 2025. Interested parties may listen to the replay by dialing 201-612-7415/877-660-6853 and entering access code 13752601.

Cautionary Statement:

The statements in this release relating to our belief that this marks the bottom of this prolonged industry down cycle for Microchip, that the decisive actions we have taken are enhancing our operational capabilities through more efficient manufacturing, improving inventory management, and a renewed strategic focus, that we believe Microchip is better positioned to capitalize on growth opportunities as market conditions evolve, that we expect even more substantial inventory reduction in the June quarter as our manufacturing optimization actions are near completion, that our financing actions are helping to maintain our investment grade rating, that we believe these strategic financial moves, alongside our disciplined cost management initiatives, position us well to navigate current market challenges while maintaining financial flexibility for future growth, that our strategic initiatives continue to deliver value across markets, our commitment to innovation, that we believe we are well-positioned to address emerging opportunities in automotive, industrial, and e-mobility markets while accelerating our customers’ development cycles, that we have clearly reached an inflection point, that we expect our net sales in the June 2025 quarter to be between $1.020 billion and $1.070 billion, that our focus is on translating the momentum we are seeing on our business into enhanced shareholder value while maintaining our dividend commitment as we return to growth, our first quarter fiscal 2026 guidance for net sales and GAAP and non-GAAP gross profit, operating expenses, operating income, other expense, net, income tax (benefit) provision, net (loss) income, dividends on preferred stock, net (loss) income attributable to common stockholders, diluted common shares outstanding, diluted net (loss) per common share, capital expenditures for the June 2025 quarter and for all of fiscal 2026, adding capital equipment to selectively expand our production capacity and add research and development equipment, our belief that non-GAAP measures are useful to investors and our assumed average stock price in the June 2025 quarter are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China and Europe) due to changes in the scope and level of tariffs, interest rates or high inflation, actions taken or which may be taken by the Trump administration or the U.S. Congress, monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to respond to any increases or decreases in market demand or customer requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels to meet any increases or decreases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any decreases or increases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017); fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

For a detailed discussion of these and other risk factors, please refer to Microchip’s filings on Forms 10-K and 10-Q. You can obtain copies of Forms 10-K and 10-Q and other relevant documents for free at Microchip’s website (www.microchip.com) or the SEC’s website (www.sec.gov) or from commercial document retrieval services.

Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this May 8, 2025 press release, or to reflect the occurrence of unanticipated events.

About Microchip:

Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. Our solutions serve approximately 109,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

Note: The Microchip name and logo are registered trademarks of Microchip Technology Incorporated in the U.S.A. and other countries. All other trademarks mentioned herein are the property of their respective companies.

INVESTOR RELATIONS CONTACT:
Sajid Daudi — Head of Investor Relations….. (480) 792-7385

The MIL Network –

May 9, 2025

MIL-OSI: Turtle Beach Corporation Announces Growth in Revenue, Adjusted EBITDA and Gross Margins in First Quarter 2025 Results and $75 Million Share Repurchase Program

Source: GlobeNewswire (MIL-OSI)

–Net Revenue of $63.9 million, up 14% compared to prior year–
–Gross Margin improved to 36.6%, an increase of approximately 470 basis points compared to prior year–
–Net Loss of $(0.7) million compared to Net Income of $0.2 million in prior year–
–Adjusted EBITDA of $4.1 million, up from $1.4 million in prior year–
–Generated $40.5 million in cash flow from operations, the highest level since 2019–
–Authorized a new $75 million stock repurchase program–

SAN DIEGO, May 08, 2025 (GLOBE NEWSWIRE) — Turtle Beach Corporation (Nasdaq: TBCH), a leading gaming accessories brand, today reported strong financial results, including growth in revenue, Adjusted EBITDA, and gross margins in the first quarter ended March 31, 2025.

First Quarter Highlights

Net revenue was $63.9 million, an increase of 14% compared to the prior year period.
Gross margin improved approximately 470 basis points to 36.6% compared to 31.8% in the prior year.
Net loss was $(0.7) million or ($0.03) per diluted share compared to net income of $0.2 million or $0.01 per diluted share in the prior year period.
Adjusted EBITDA was $4.1 million, compared to $1.4 million in the prior year period.
Generated $40.5 million in cash flow from operations, the highest level since 2019.
Authorized a new $75 million stock repurchase program.

“With incremental revenue and margin from our March 2024 acquisition of PDP, we delivered strong Q1 growth over the prior year, despite a year-to-date decline in gaming accessories markets due to current macroeconomic headwinds. Our Adjusted EBITDA growth reflects the benefits from our expanded portfolio of next-generation gaming accessories and highlights the accretive advantages of our M&A strategy and strong execution,” said Cris Keirn, CEO, Turtle Beach Corporation.

“As we have entered into a dynamic and complex macroeconomic environment, we have rapidly adapted our operations to better position the Company for the future. We have been prepared for the potential shift in tariffs and have quickly responded. We proactively increased inventory levels at the start of the year, and following the announcement in early April of new tariffs, we took immediate and decisive action. We are pleased to report that because of our early planning and preparedness, we are transitioning significant production out of China. As such, following the first quarter, less than 10% of our supply for the U.S. will come from China. For the remainder of 2025, our U.S. supply will primarily come from Vietnam, and we will continue evaluating and implementing further diversification of our end-to-end supply chain. Additionally, we have mitigation plans in place should additional changes occur to the current tariff environment for Vietnam. The portion of our supply chain that we continue maintaining in China will primarily be dedicated to producing goods for non-U.S. shipments.

“Our commitment to long-term value creation extends beyond product innovation. Over the past year, we implemented the largest share repurchase program in the Company’s history, as we continue to opportunistically return capital to shareholders. The recent decision by our board of directors to authorize the repurchase of up to $75 million of our stock over the next two years signals our continued confidence in our prospects and our continued willingness to repurchase the Company’s shares.

“Given recent events in the broader macroeconomic environment, we’ve made thoughtful revisions in our financial outlook. We remain confident in our near-term initiatives, the expertise of our team, and our ability to drive value for shareholders. Our focus on profitability, operational efficiency, and growth continues to drive our efforts as we adapt to these evolving conditions. We appreciate the ongoing support of our shareholders and stakeholders as we work toward more growth in 2026 and execute our strategy for sustainable, long-term success.”

Share Repurchase Update
For the first quarter ended March 31, 2025, the Company repurchased $1.8 million of common stock. Since the Company began repurchasing shares under the prior stock repurchase authorization program in the second quarter of 2024, the Company has repurchased 1.9 million shares for an aggregate purchase price of $29.5 million. In line with its continued commitment to return capital to shareholders, the Company is opportunistically assessing various potential share repurchase strategies. The Company has authorized a new stock repurchase program of up to $75 million over the next two years. The amount and timing of specific repurchases are subject to market conditions, applicable legal requirements, restrictions in the Company’s debt agreements and other factors. The Company intends to fund the share repurchases using cash from operations or short-term borrowings and may suspend or discontinue repurchases at any time. The share repurchase program is scheduled to expire on May 6, 2027.

Balance Sheet and Cash Flow Summary
As of March 31, 2025, the Company had net debt of $43.6 million, comprised of $55.2 million of borrowings less $11.7 million of cash. During the first quarter ended March 31, 2025, the Company generated $40.5 million in cash flow from operations, the highest level since 2019.

Financial Outlook
Due to the ongoing macroeconomic uncertainty and the recent industry announcements regarding new game releases, the Company is revising its financial outlook for the full year 2025. The Company currently expects gaming accessories markets to improve throughout 2025 but remain down for the full year compared to 2024, resulting in Company net revenues in the range of $340 million and $360 million. As the Company continues to execute on its profitability initiatives, it currently expects Adjusted EBITDA to be between $47 million and $53 million.

Earnings Conference Call and Webcast Details
Turtle Beach will host a conference call and audio webcast today, May 8, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), during which management will discuss first quarter results and provide commentary on business performance and its current outlook for 2025. A question-and-answer session will follow the prepared remarks.

The conference call may be accessed by telephone by dialing 877-407-0792 or 201-689-8263.

A live audio webcast of the earnings conference call may be accessed on Turtle Beach’s website at corp.turtlebeach.com, along with a copy of this press release and an updated investor presentation. A telephone replay of the call will be available through May 22, 2025, and can be accessed by dialing 1-844-512-2921 or 1-412-317-6671 and entering passcode 13752645. A replay of the webcast will also be available on the investor relations website for a limited time.

About Turtle Beach Corporation
Turtle Beach Corporation (the “Company”) (corp.turtlebeach.com) is one of the world’s leading gaming accessory providers. The Company’s namesake Turtle Beach brand (www.turtlebeach.com) is known for designing best-selling gaming headsets, top-rated game controllers, award-winning PC gaming peripherals, and groundbreaking gaming simulation accessories. Innovation, first-to-market features, a broad range of products for all types of gamers, and top-rated customer support have made Turtle Beach a fan-favorite brand and the market leader in console gaming audio for over a decade. Turtle Beach Corporation acquired Performance Designed Products LLC (www.pdp.com) in 2024. Turtle Beach’s shares are traded on the Nasdaq Exchange under the symbol: TBCH.

Non-GAAP Financial Measures
In addition to its reported results, the Company has included in this earnings release certain financial metrics, including Adjusted EBITDA, that the Securities and Exchange Commission define as “non-GAAP financial measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results. Non-GAAP financial measures are not an alternative to the Company’s GAAP financial results and may not be calculated in the same manner as similar measures presented by other companies. “Adjusted EBITDA” is defined by the Company as net income (loss) before interest, taxes, depreciation and amortization, stock-based compensation (non-cash), and certain non-recurring special items that we believe are not representative of core operations, as further described in Table 4. These non-GAAP financial measures are presented because management uses non-GAAP financial measures to evaluate the Company’s operating performance, to perform financial planning, and to determine incentive compensation. Therefore, the Company believes that the presentation of non-GAAP financial measures provides useful supplementary information to, and facilitates additional analysis by, investors. The non-GAAP financial measures included herein exclude items that management does not believe reflect the Company’s core operating performance because such items are inherently unusual, non-operating, unpredictable, non-recurring, or non-cash. See a reconciliation of GAAP results to Adjusted EBITDA included as Table 4 below for the three months ended March 31, 2025, and March 31, 2024.

By providing full year 2025 Adjusted EBITDA guidance, the Company provided its expectation of a forward-looking non-GAAP financial measure. Information reconciling full year 2025 Adjusted EBITDA to its most directly comparable GAAP financial measure, net income (loss), is unavailable to the Company without unreasonable effort due to the variability, complexity, and lack of visibility with respect to certain reconciling items between Adjusted EBITDA and net income (loss), including other income (expense), provision for income taxes and stock-based compensation. These items cannot be reasonably and accurately predicted without the investment of undue time, cost and other resources and, accordingly, a reconciliation of the Company’s Adjusted EBITDA outlook to its net income (loss) outlook for such periods is not provided. These reconciling items could be material to the Company’s actual results for such periods.

Cautionary Note on Forward-Looking Statements
This press release includes forward-looking information and statements within the meaning of the federal securities laws. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding assumptions, projections, expectations, targets, intentions, or beliefs about future events. Statements containing the words “may”, “could”, “would”, “should”, “believe”, “expect”, “anticipate”, “plan”, “estimate”, “target”, “goal”, “project”, “intend” and similar expressions, or the negatives thereof, constitute forward-looking statements. Forward-looking statements are only predictions and are not guarantees of performance. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. The inclusion of such information should not be regarded as a representation by the Company, or any person, that the objectives of the Company will be achieved. Forward-looking statements are based on management’s current beliefs and expectations, as well as assumptions made by, and information currently available to, management.

While the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may cause results to differ materially from those expressed in forward-looking statements made by the Company or on its behalf. Some of these factors include, but are not limited to, risks related to trade policies, including the imposition of tariffs on imported goods and other trade restrictions, the release and availability of successful game titles, macroeconomic conditions affecting the demand for our products, logistic and supply chain challenges and costs, dependence on the success and availability of third-parties to manufacture and manage the logistics of transporting and distributing our products, the substantial uncertainties inherent in the acceptance of existing and future products, the difficulty of commercializing and protecting new technology, the impact of competitive products and pricing, general business and economic conditions, risks associated with the expansion of our business including the integration of any businesses we acquire and the integration of such businesses within our internal control over financial reporting and operations, our indebtedness, liquidity, and other factors discussed in our public filings, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and the Company’s other periodic reports filed with the Securities and Exchange Commission. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission, the Company is under no obligation to publicly update or revise any forward-looking statement after the date of this release whether as a result of new information, future developments or otherwise.

CONTACTS

Investors:
tbch@icrinc.com
(646) 277-1285

Public Relations & Media:
MacLean Marshall
Sr. Director, Global Communications
Turtle Beach Corporation
(858) 914-5093
maclean.marshall@turtlebeach.com


Turtle Beach Corporation Condensed Consolidated Statements of Operations (in thousands, except per-share data) (unaudited)
Table 1.
	Three Months Ended
	March 31,			March 31,
	2025			2024
Net revenue	$	63,901		$	55,848
Cost of revenue		40,534			38,062
Gross profit		23,367			17,786
Operating expenses:
Selling and marketing		12,453			9,013
Research and development		3,993			3,902
General and administrative		8,216			5,674
Insurance recovery		(3,439	)		–
Acquisition-related cost		608			4,910
Total operating expenses		21,831			23,499
Operating income (loss)		1,536			(5,713	)
Interest expense		2,006			150
Other non-operating expense, net		303			370
Loss before income tax		(773	)		(6,233	)
Income tax expense (benefit)		(109	)		(6,388	)
Net income (loss)	$	(664	)	$	155

Net loss per share
Basic	$	(0.03	)	$	0.01
Diluted	$	(0.03	)	$	0.01
Weighted average number of shares:
Basic		20,506			18,321
Diluted		20,506			19,389



Turtle Beach Corporation Condensed Consolidated Balance Sheets (in thousands, except par value and share amounts)
Table 2.
	March 31,			December 31,
	2025			2024
	(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	11,684		$	12,995
Accounts receivable, net		42,354			93,118
Inventories		73,664			71,251
Prepaid expenses and other current assets		14,533			11,007
Total Current Assets		142,235			188,371
Property and equipment, net		4,884			5,844
Goodwill		50,428			52,942
Intangible assets, net		40,382			42,398
Other assets		9,095			9,306
Total Assets	$	247,024		$	298,861
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Revolving credit facility	$	6,592		$	49,412
Accounts payable		39,539			34,839
Other current liabilities		26,294			39,421
Total Current Liabilities		72,425			123,672
Debt, non-current		45,544			45,620
Income tax payable		1,367			1,362
Other liabilities		6,814			7,603
Total Liabilities		126,150			178,257
Commitments and Contingencies
Stockholders’ Equity
Common stock		20			20
Additional paid-in capital		240,150			239,983
Accumulated deficit		(118,758	)		(118,094	)
Accumulated other comprehensive loss		(538	)		(1,305	)
Total Stockholders’ Equity		120,874			120,604
Total Liabilities and Stockholders’ Equity	$	247,024		$	298,861



Turtle Beach Corporation Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited)
Table 3.
	Three Months Ended
	March 31, 2025			March 31, 2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(664	)	$	155
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		1,110			916
Amortization of intangible assets		2,016			560
Amortization of debt financing costs		276			70
Stock-based compensation		1,912			1,105
Deferred income taxes		(445	)		(6,716	)
Change in sales returns reserve		1,873			(2,410	)
Provision for obsolete inventory		486			794
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		48,891			35,918
Inventories		(2,899	)		(3,063	)
Accounts payable		4,716			8,065
Prepaid expenses and other assets		(3,473	)		(357	)
Income taxes payable		(1,401	)		2
Other liabilities		(11,946	)		(7,782	)
Net cash provided by operating activities		40,452			27,257
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(166	)		(731	)
Acquisition of a business, net of cash acquired		2,515			(75,494	)
Net cash provided by (used for) investing activities		2,349			(76,225	)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities		65,276			80,288
Repayment of revolving credit facilities		(108,096	)		(80,288	)
Proceeds of term loan		–			50,000
Repayment of term loan		(312	)		(104	)
Proceeds from exercise of stock options and warrants		5			1,257
Repurchase of common stock		(1,750	)		–
Debt issuance costs		–			(3,170	)
Net cash provided by (used for) financing activities		(44,877	)		47,983
Effect of exchange rate changes on cash and cash equivalents		765			75
Net decrease in cash and cash equivalents		(1,311	)		(910	)
Cash and cash equivalents – beginning of period		12,995			18,726
Cash and cash equivalents – end of period	$	11,684		$	17,816



Turtle Beach Corporation GAAP to Adjusted EBITDA Reconciliation (in thousands)
Table 4.
	Three Months Ended
	March 31,
	2025			2024
	(in thousands)
Net (loss) income	$	(664	)	$	155
Interest expense		2,006			150
Depreciation and amortization		3,126			1,476
Stock-based compensation		1,912			1,105
Income tax benefit (1)		(109	)		(6,388	)
Restructuring expense (2)		5			41
Acquisition-related expense (3)		608			4,910
Insurance recovery (4)		(3,439	)		—
Loss on inventory in transit and other costs (5)		605			—
Adjusted EBITDA	$	4,050		$	1,449

(1)	An income tax benefit of $7.0 million was recorded in the three months ended March 31, 2024 as a result of the reversal of a portion of the Company’s deferred tax asset valuation allowance.
(2)	Restructuring charges are expenses that are paid in connection with reorganization of our operations. These costs primarily include severance and related benefits.
(3)	Acquisition-related cost includes one-time costs we incurred in connection with acquisitions including warehouse lease impairment, professional fees such as legal and accounting along with other certain integration related costs.
(4)	Insurance proceeds from claims related to a loss of inventory while in transit that occurred in the fourth quarter of 2024.
(5)	Certain professional fees related to recovery initiatives in connection with a loss of Turtle Beach inventory while in transit that occurred in the fourth quarter of 2024.

The MIL Network –

May 9, 2025

MIL-Evening Report: Stepmums, alien mums, robot mums, vengeful mums: 7 films to watch this Mother’s Day

Source: The Conversation (Au and NZ) – By Jessica Gildersleeve, Professor of English Literature, University of Southern Queensland

With Mother’s Day around the corner, you may be wondering what gift you’ll give mum – or any of the mums in your life. This year, why not skip the fancy dinner and offer one of the most precious gifts there is: quality time, in front of the TV.

When I asked seven experts what movies they’d recommend for Mother’s Day, I wasn’t expecting I, Tonya or Alien: Romulus – but their responses have made me realise just how multifaceted the experience of motherhood is, and how weirdly and wonderfully it can be reflected onscreen.

So here’s what to watch if you want to laugh, cry, or scream, in an ode to mothers everywhere.

I, Tonya (2017)

The first film from Margot Robbie’s production company LuckyChap Entertainment – which earned Robbie an Oscar nomination for best actress – is an ideal viewing choice for anyone wanting to support Aussie female talent.

Former American figure skater Tonya Harding became a household name in 1994, after her then-husband Jeff Gillooly orchestrated an assault on her primary rival, Nancy Kerrigan, in a bid to block Kerrigan from representing the United States at that year’s Winter Olympics.

I, Tonya presents the event, and those of Harding’s career leading up to it, from a more sympathetic perspective than usual. Although it is careful to open with the caveat that the story is derived from “irony-free, wildly contradictory, totally true interviews with Tonya Harding and Jeff Gillooly”, the film presents Harding’s life as one of abuse and cruelty at every turn.

The judges can’t stand her “unfeminine” power. Her husband only shows love through violence. And her heartless mother, LaVona (Alison Janney) is desperate to cash-in on the financial gains from her career success, while simultaneously resenting it.

Janney’s performance as LaVona won her the Academy Award for best supporting actress, a title thoroughly deserved as an ice-cold LaVona chainsmokes through barbed criticisms and physical threats. While I, Tonya may not be the most obvious choice for a film to watch on Mother’s Day, it certainly will make you appreciate yours.

– Jessica Gildersleeve

Stepmom (1998)

Stepmom, starring Julia Roberts and Susan Sarandon, is a family weepy for anyone who needs a cathartic cry. Directed by Chris Columbus, the comedy–drama follows the story of terminally ill woman Jackie Harrison (Sarandon) as she comes to grips with the fact her ex-husband’s new girlfriend Isabel (Roberts) will soon be her children’s stepmother.

The film, like others under Columbus’ direction, is a critique of domestic dysfunction (think Home Alone, Mrs Doubtfire, or Nine Months), and an exploration of the lengths characters will go in order to restore the ruptured (nuclear) family, whether literally or symbolically.

Despite its melodramatic machinery and predictable ending, Stepmom offers a nuanced portrayal of the struggles of children during separation or divorce. We see 12-year-old Anna and her little brother, Ben, an aspiring magician, caught in an emotional tug-of-war between their loyalty to their dying mother and their natural affection for their new stepmum.

In an honest moment, an anxious Ben asks his dad, “can you ever fall out of love with your kids?”

“No, that’s impossible,” Dad responds.

In an equally realistic thread, the sullen Anna begrudgingly turns to Isabel for advice on boys, clothes and makeup – their relationship soon resembling one of sisters rather than adversaries (controversially, Roberts’ character even takes it upon herself to explain the concept of “snowblowing” to the tween).

In 1998, Stepmom was ahead of its time – not in its representation of motherhood, but in its acknowledgement the nuclear family was, even back then, a thing of the past.

– Kate Cantrell

Double Jeopardy (1999)

Like most thrillers made in the 1990s, Double Jeopardy begins in the Pacific Northwest region of the United States: the epicentre for murder and mist.

Libby Parsons (Ashley Judd) is living the idyllic waterfront life with her husband Nick (Bruce Greenwood) and son Matty. After being convinced by Nick to go yachting, Libby wakes up on the boat (during what could best be described as a mist storm) to discover Nick is missing, and there is an endless path of blood from her hands to the yacht’s edge.

Libby is tried and convicted for Nick’s murder. While grieving her son in jail, she finds out her husband is actually alive and has framed her. Libby’s cellmate tells her about the “double jeopardy” rule: you can’t be tried for the same crime twice.

The montage of Libby preparing for revenge in jail signals an uptick in campy action. Upon her release, we’re introduced to parole officer Travis (Tommy Lee Jones). A game of cat and mouse ensues that is equal parts thrilling and ridiculous.

Ultimately, Libby must choose between vengeance and getting her son back. Will she follow the rules and wait, or will she put her relentless jail workouts to good use? Double Jeopardy is profoundly stupid and fun, with all the unexpected charm of a midday movie that pulls you in, despite not making much sense.

It’s just the kind of movie my mum and I have found ourselves glued to on a Saturday afternoon – cheerleaders for revenge.

– Kathleen Williams

Monster-in-Law (2005)

What lengths would you go to protect your son from marrying someone unsuitable? One of the first references to the roles of the mother-in-law can be traced back to Latin literature, and the comedic play Hecyra, by Roman playwright Terence, which was first successfully performed in 160 BC. The play’s comedic twist is that the mother-in-law is accused of hating her son’s wife.

The 2005 box office hit Monster-in-Law (2005) follows this trajectory and takes it to the extreme. Viola Fields (Jane Fonda) becomes manipulative and acts downright dirty to prevent her son, Kevin (Michael Vartan), from getting married to his fiancée Charlie (Jennifer Lopez) – who she thinks is not good enough for him.

This romantic comedy has the conventions of love, romance, a wedding, and overall impending chaos. It is about a mother trying to do what she thinks is best for her son, as well as the fragile links between romantic love, familial love and matriarchy.

In parts, the film transgresses into slapstick territory, as Kevin remains oblivious of Viola’s volatile antics towards Charlie. The tension between the two strong female leads hilariously spirals out of control in the lead-up to the wedding.

Monster-in-Law is a feel-good film that draws on the close bond between mother and child, making it good viewing for Mother’s Day.

– Panizza Allmark

The Wild Robot (2024)

There’s a cultural belief that once your baby is in your arms, you’ll immediately know how to look after them, or that you can draw on your own experience of being mothered, or find the right path in one of eleventy billion parenting books.

But even if you did have a good experience of being mothered (and many don’t), or you find some great books, parenthood remains a journey of uncertainty and trial and error.

When I took my young children to see The Wild Robot, I laughed and cried way more than them. Not just because the animation was so beautiful, or because the story was so moving, but because of the non-didactic moments that resonated so strongly with how we parents feel.

We often don’t know what we’re doing; we’re trying our best, and wishing it will be the right thing – playing out an internal war between wanting to protect our children and wanting them to forge their own path.

In The Wild Robot, Roz the robot (voiced by Lupita Nyong’o) is focused on helping her adopted gosling Brightbill (Kit Connor) learn how to fly – something she has no experience of. More importantly, Brightbill must fly on a migration flight with other birds, where she can’t join him.

The film mirrors the beautiful and horrifying knowledge parents carry: if we do our job, our children will become their own individuals who are able and willing to leave us. All we can hope is we’ve formed a bond that will make them want to return.

– Rebecca Beirne

My Big Fat Greek Wedding (2002)

Was your mother born overseas? It’s likely. Nearly half of all Australians have a parent born overseas. Or perhaps you married into a family where your “new mum” was born overseas?

Your mother-in-law counts on Mother’s Day. Don’t forget it. And if you married into a wonderfully loud Greek/Italian family as I did, then your mother-in-law is likely a hard worker who deserves to be entertained. So why not offer her, and all the mums in your life, a sweet, disarming rom-com about a clash of cultures and a life milestone all mums can get behind: a wedding. A Big Fat Greek Wedding, to be precise.

Written by and starring Nia Vardalos, this film tells the tale of Toula Portokalos, who, at the “advanced” age of 30, remains persistently unmarried in the early aughts Chicago. In Greek terms, this is already a tragedy. The title does a lot of heavy lifting in terms of what comes next.

The real charm of the film is the clash of cultures that anyone with any ethnic background will recognise.

My Big Fat Greek Wedding was a small film with huge global success. Will your mum care it was made with a budget of just US$5 million but grossed more than US$360 million worldwide, making it one of the most profitable films of all time, with a more than 6,150% return? Probably not.

But she’ll love John Corbett, that tall guy who was also in Sex in City (and he’s really good in this one). Just make sure you skip the sequels.

– Ruari Elkington

Alien: Romulus (2024)

Not everyone wants to watch saccharine romantic comedies on Mothers’ Day. If you can relate, dystopian horror film Alien: Romulus (2024) offers much darker pleasures.

Feminist scholars have long found the Alien franchise to be rife with symbolism and repressed fears about motherhood, birth and reproductive organs. Alien: Romulus goes further than the original 1979 film in making the theme of sexual violation explicit. As you might expect from Fede Álvarez, the director of Evil Dead (2013), there is plenty of body horror as human characters are assaulted and orally impregnated by Alien species.

The film also includes neo-Marxist messages about “the company” and its violation of workers’ bodies. Working mums may enjoy the dark humour of a futuristic corporation that literally sucks the life out of workers before politely thanking them for their service.

Leading action woman Rain Carradine (Cailee Spaeny) is more vulnerable and relatable than the iconic character Ripley of previous films. When Rain discovers her work contract has tipped over into slavery, she joins up with her ex-boyfriend Tyler (Archie Renaux) and his pregnant sister Kay (Isabela Merced) to hijack a space station.

They must then manage a coolly indifferent IT operating system called “MU/TH/UR” to control the ship. The fact Kay is pregnant does not bode well; her baby eventually bursts out as a hideous alien-human mutant which tries to eat her.

Alien Romulus is basically every unspeakable anxiety about pregnancy and motherhood realised through spectacular special effects. It’s also the franchise’s best film since the original.

– Susan Hopkins

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Stepmums, alien mums, robot mums, vengeful mums: 7 films to watch this Mother’s Day – https://theconversation.com/stepmums-alien-mums-robot-mums-vengeful-mums-7-films-to-watch-this-mothers-day-255004

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-Evening Report: Ever wanted to ditch the 9-to-5 and teach snowsports? We followed people who did it for 10 years

Source: The Conversation (Au and NZ) – By Marian Makkar, Senior Lecturer in Marketing, RMIT University

Konstantin Shishkin/Shutterstock

Workplace burnout – a state of emotional, physical, and mental exhaustion – and the COVID pandemic have sparked a rethink of the traditional 9-to-5 job.

It’s been estimated 30% of the Australian workforce is experiencing some degree of burnout, raising serious concerns about the possible impacts on mental health.

Is it possible – and if so, wise – to take addressing burnout into your own hands? Some responses to the problem, such as “micro-retirement”, have enjoyed recent popularity on social media.

But a small number of people take an even more radical approach – dumping the 9-to-5 path entirely for careers that prioritise meaning, enjoyment and personal growth. We sought to find out how this move played out for one group in particular – snowsports instructors.

Our research – published in the International Journal of Research in Marketing – covers a 10.5-year study of snowsports instructors who left their 9-to-5 jobs for a meaningful career on the slopes of Canada, Japan, the United States and New Zealand.

We looked at instructors’ journeys into the lifestyle, how they managed their new careers, and what led some to eventually return to the 9-to-5.

Chasing winter

We interviewed 13 snowsports instructors aged 25 to 40 (seven men, six women), collected image and video artefacts, followed social media accounts and surveyed snow school reports. Our lead researcher also participated in the lifestyle herself.

All our participants had at least a bachelor degree and previous steady careers in fields such as education or information technology.

During our decade-long field work, we found instructors earned just enough money to maintain this lifestyle, often travelling with their possessions in one or two bags.

Whistler Mountain, Canada: instructors get to live and work in places of great natural beauty.
Kevin503/Shutterstock

Beyond the adrenaline and beauty of a life in the snow, we found people were first motivated to enter this career to escape the corporate world and ties of modern life. One participant, Lars, said:

If you just get a job, you get maybe 20 days off a year for the next 40 years, and once you stop, once you’ve got a job and a house and a mortgage and a kid […] you’re trapped.

A sense of accomplishment

At the centre of our research was the idea of building a career around the ancient Greek concept of “eudaimonia”. This term is sometimes translated to “happiness” in English, but its broader connotations mean it’s closer to “flourishing” and involves a sense of purpose and living a life of virtue.

That’s in contrast to the related concept of “hedonism” – which centres on the pursuit of pleasure for its own sake. Eudaimonia is meant to make us reflect on life’s purpose, potential and meaning.

As our participants mastered the sport and career, they moved from mere enjoyment or hedonism of being in the snow to finding meaning and purpose in their jobs.

They felt a sense of accomplishment and appreciation of snowsports as a sport and job requiring dedication, care and commitment.

Challenges along the way

However, with every career there are demands that shape how people manage work and purposeful pursuits. Instructors must bear financial costs such as buying their own equipment, paying for certifications and accommodation.

Eventually the lifestyle was not sustainable for some due to precarious working conditions and minimal wages. Relying on the weather to produce snow, unfair compensation and fixed-term contracts wore many down.

An unhappy participant confessed:

You think about money all day everyday […] working out the costs, staffing and lesson prices! Yet they (ski resort managers) tell me as an instructor that I shouldn’t think about my monetary work. Well, if it wasn’t about the money, you wouldn’t charge as much for lessons.

In the period we studied, six returned to a regular 9-to-5 job.

An alternative to meaningless jobs?

The late American anthropologist David Graeber coined the phrase “bullshit jobs” to describe jobs that comprise meaningless tasks that add no real value aside from providing a salary.

The 9-to-5 can be a grind.
Shutterstock

Our study offers a window into the lives of those who sought an alternative, trying to build something they love into the daily work they do to earn a living.

For many, despite challenges the ability to ride slopes daily remained more appealing than a desk job. One told us:

At university my first management lecturer said, ‘you could go on to be a CEO, earn $300,000 a year and have a month off every year to go skiing’, and I said, ‘or I could go skiing every day and still afford to eat and pay my rent’. It’s all I really need.

But things didn’t work out for all of them. The experience of those who left suggests choosing meaningful work can be difficult and can force people out if the surrounding organisational system is not supportive.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Ever wanted to ditch the 9-to-5 and teach snowsports? We followed people who did it for 10 years – https://theconversation.com/ever-wanted-to-ditch-the-9-to-5-and-teach-snowsports-we-followed-people-who-did-it-for-10-years-255012

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-Evening Report: Old drains and railways are full of life. Here’s how to make the most of these overlooked green spaces

Source: The Conversation (Au and NZ) – By Hugh Stanford, Researcher Associate, Centre for Urban Research, RMIT University

Much of the old circular railway line in Paris, La Petite Ceinture, or Little Belt, has been turned into a public park. ldgfr photos, Shutterstock

Across Australian cities, leftover and overlooked green spaces are everywhere. Just think of all the land along stormwater drains, railway lines and vacant lots. While often dismissed as useless or unsightly, there’s a growing understanding of the value these spaces bring to cities.

These informal green spaces can support biodiversity and offer rare freedom to explore, play or connect with nature in a less controlled way than formal spaces such as parks. They also help to cool our cities.

My new research looks at how cities globally are rethinking overlooked green spaces. I identified three ways to unlock the value of these areas: leaving spaces intentionally unmanaged, supporting temporary or informal uses, or formalising them as parks or other public places. Each approach offers different benefits and challenges for cities trying to create greener, more liveable neighbourhoods.

Local councils are under increasing pressure to create more formal green space, with residents, at times, calling on councils to buy land for new parks. But let’s start with what’s already there.

1: Hands off: the case for doing less

In some cases, doing nothing can be surprisingly powerful.

When governments step back, communities and nature can step in, with potentially joyful, creative and ecologically rich results. In the Belgian capital of Brussels, for example, disused railway land, left unmanaged, has become a haven for biodiversity, offering valuable insights into how ecosystems can regenerate without human interference.

Closer to home, there are many examples of railway land being used informally as green space. One site, in the Melbourne suburb of Northcote, has become a makeshift trail used by walkers, dog owners and children on bikes. Though not officially a park, it functions like one, with its informal character fostering a sense of ownership and spontaneity among users. In the past few months, local residents have started planting native vegetation and putting up makeshift art installations, and even a swing.

But this hands-off approach has limitations. It works best where a strong sense of community, or ecological value, already exists. And while nature can bounce back in surprising ways, it often needs a helping hand.

Locals have embraced a small patch of land in a railway reserve near Dennis Station in Northcote, Melbourne.
Hugh Stanford

2. Helping out: supporting informal or temporary uses

Where informal installations already exist – such as art installations or unauthorised plantings known as guerrilla gardens – councils can support and even help grow these initiatives.

Some councils may see local-led efforts as a liability, but these efforts represent an opportunity to bring life to underused land at minimal cost. By recognising and supporting such activities, including financially, councils can empower residents to shape their own neighbourhoods in meaningful ways. This can include expanding existing installations or establishing new installations on other underused sites.

There is also benefit in local councils creating their own temporary installations such as pop-up parks. This has been shown to be an effective way to activate underused space and trial initiatives before more permanent plans are developed.

Examples include the creation of a temporary park in Ballarat Street, Yarraville in 2012. Community support for the temporary park led to the construction of a permanent park in 2014.

Local councils can offer support to communities seeking to revitalise disused green space.
Hugh Stanford

3. Stepping in: when formalising makes sense

There are times where formal intervention is warranted – for example, where land is contaminated or supports invasive weeds. In such cases, transforming a site into a fully developed park can deliver significant benefits. Land alongside a river, road or railway line, can be readily transformed into a long “linear park” with walking trails and bike paths.

In Paris, the conversion of a former industrial railway line into a linear park is a great example, attracting both locals and tourists.

Melbourne, too, has its own success in revitalising disused infrastructure. The Greening the Pipeline project in Melbourne’s west involves converting a disused sewer main into a vibrant linear park. These projects demonstrate the benefits that can be achieved from developing high-quality, permanent public green spaces from underused land.

But formalising public use of urban green space comes at a cost, financially and otherwise: a highly designed park can crowd out the quirky, unplanned character that makes many informal spaces feel special. That’s why it’s crucial to see formalising green space as one option among many, and to reserve it for sites where potential benefits justify the investment.

The Greening the Pipeline project in Melbourne’s west highlights what can be achieved.
Hugh Stanford

A call to action

If you work in urban planning or local government, resist the urge to control and replace. Look at what’s already available. Sometimes the best thing you can do is observe, step back and support. Not all public spaces need a master plan.

If you’re a resident, get out there. Start small: plant something native, or set up a swing (where safe to do so). By engaging with the green spaces already around you, you might help create your own slice of urban paradise – no land purchase required.

Start small and set up a swing, where safe to do so.
Hugh Stanford

Hugh Stanford does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Old drains and railways are full of life. Here’s how to make the most of these overlooked green spaces – https://theconversation.com/old-drains-and-railways-are-full-of-life-heres-how-to-make-the-most-of-these-overlooked-green-spaces-255736

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-Evening Report: A community-led health program in remote Arnhem land is showing promising results for First Nations locals
Source: The Conversation (Au and NZ) – By Hasthi Dissanayake, Research Fellow in Indigenous Health, The University of Melbourne

The Doherty Institute

Indigenous Australians are more than twice as likely as non-Indigenous Australians to suffer from disease, particularly chronic diseases such as diabetes, heart disease and kidney disease.

The health disparities are worse in remote and very remote areas. The burden of diabetes in the remote Aboriginal population of the Northern Territory, where it affects more than one in four adults aged over 20, is among the highest in the world.

The Yolŋu (or Yolngu) people of Northeast Arnhem land, a large, remote area in the NT, maintain one of the oldest continuously living cultures in the world. They also represent one of the largest Indigenous groups in Australia.

Yet, people in these communities face the highest number of avoidable deaths in Australia, mostly from chronic disease. A diet of too much sugar, refined and processed food products, smoking and an unhealthy lifestyle contribute to this region’s health crisis.

Beginning in 2014, senior Yolŋu women in Galiwin’ku, one of the largest communities in Northeast Arnhem land, have been developing a unique diet and lifestyle change program called Hope for Health. The program has been running intermittently since then, and includes on-Country health retreats, individualised health coaching, and group classes and activities.

We recently evaluated this program. We found it offers significant benefits which could reduce chronic disease risk among the Yolŋu people.

Hope for Health participants and staff at a cooking workshop.
Hope for Health

A holistic approach

Most Yolŋu live on Aboriginal land in remote communities of various sizes and hold a deep unbroken connection to their ancestral country.

Health and wellbeing is considered a holistic concept that connects physical, social, emotional, cultural, spiritual and ecological wellbeing at both an individual and community level.

The Hope for Health program is based on the values of Margikunhamirr (making known and sharing understanding) and Goŋ-ŋthanhamirr (supporting and walking alongside each other) to empower Yolŋu to gain control of their health.

Over four months, the program focuses on giving people the knowledge to make their own lifestyle changes and choices to improve health and prevent chronic disease.

It includes:
- An on-Country health retreat: this is an immersive 12-day bush retreat focused on reconnecting with the Yolŋu tradition of living, eating, and healing from the land, and learning about the body and health.
- In-community support and mentoring: over 14 weeks following the retreat, this part of the program is focused on overcoming barriers to introducing lifestyle changes. It includes group activities for identifying healthy food options at the shops, storing and cooking fresh produce, and yarning about healthy lifestyles.
- Individual and home-based health coaching: this takes place during the retreat and afterwards in participants’ homes or places of their choosing. Health coaches explain blood test results to participants, offer education in their language and help with goal setting, such as reducing sugar consumption, smoking, or increasing exercise.
The Hope for Health program seeks to give people the knowledge they need to make their own lifestyle changes.

What we found

Together with colleagues at the Doherty Institute and other collaborators, we evaluated a Hope for Health program in the second half of 2022.

We assessed outcomes such as body weight and blood sugar levels among 55 adults before and after they took part in the program. All participants were overweight or obese at the beginning.

We recently published our findings in the Medical Journal of Australia.

By the end of the program, 52% of participants reduced their HbA1c – a measure of blood sugar – by at least 0.3%. Some 33% of participants lost at least 3% of their body weight.

Changes such as these are called “clinically significant” because they’re big enough for doctors to see real health benefits such as reduced risk of chronic disease, including diabetes and heart disease.

Other outcomes we looked at improved too. Overall, participants had smaller waist circumferences at the end, lower body-mass index, better “good” cholesterol levels, were drinking less sugary drinks, and doing more daily exercise.

Why did it work?

Behavioural change is not necessarily easy to achieve in these communities, which have a very different language and culture from mainstream Australia.

Our study is the first in remote Aboriginal communities to comprehensively evaluate a lifestyle change program with such promising results.

The study design cannot prove the intervention directly caused the changes. That is, there may have been other factors which contributed to the outcomes.

A randomised controlled trial would have provided stronger proof the program led to the health improvements we observed, but these trials can be unsuitable in remote Indigenous communities. In this study, the community was concerned delaying the program for some people would harm their health. Also, many wanted their extended family to take part, making it difficult to select a representative control group which would be needed for this type of study.

Nonetheless, our results suggest support for culturally sensitive health initiatives such as Hope for Health is crucial for reducing the burden of chronic disease in remote Indigenous communities.

We believe Hope for Health worked because it was led by Yolŋu people and is built on Yolŋu knowledge, language and culture. Education provided to remote Aboriginal people such as the Yolŋu needs to be liya-lapmarnhamirr – that is, presented in a way that brings revelation and understanding.

Hasthi Dissanayake receives or has received funding from the Medical Research Future Fund, University of Melbourne, University of Sydney, and Australian government postgraduate and research grants.

Beverley-Ann Biggs receives research funding from the National Health and Medical Research Council and Medical Research Future Fund competitive grant schemes.

George Gurruwiwi does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. A community-led health program in remote Arnhem land is showing promising results for First Nations locals – https://theconversation.com/a-community-led-health-program-in-remote-arnhem-land-is-showing-promising-results-for-first-nations-locals-255519
MIL OSI Analysis – EveningReport.nz –
May 9, 2025
MIL-Evening Report: To split Moscow from Beijing, Trump is reviving Nixon’s ‘madman diplomacy’. It could backfire badly

Source: The Conversation (Au and NZ) – By Ian Langford, Executive Director, Security & Defence PLuS and Professor, UNSW Sydney

When United States President William McKinley advocated high‑tariff protectionism in 1896, he argued squeezing foreign competitors behind a 50% wall of duties would make America richer and safer.

That logic framed US trade debates for a generation, but it was always an economic device – not a geopolitical lever.

In 2025, Donald Trump, now the 47th US president, slapped tariffs on most imported goods to the United States, specifically targeting Chinese imports.

Yet, despite the fact he idolises McKinley, Trump’s emerging grand strategy looks less like his customs schedule and more like Richard Nixon’s “madman” diplomacy of the early 1970s.

Trump is signalling that unpredictability, not price schedules, will coerce adversaries and reorder alliances.

An image of irrational resolve

McKinley’s 1890s tariffs nearly doubled average duties, shielding domestic manufacturers but doing little to shift the global balance of power.

The lesson from these tariffs was straightforward: protectionism may enrich some sectors, but it rarely bends rivals’ strategic choices.

Trump’s first term flirted with McKinley-inspired trade wars, industrial policy and “America First” rhetoric. His second term “strategic reset” moves onto darker, Nixonian ground.

Nixon and his secretary of state, Henry Kissinger, cultivated an image of irrational resolve. They hinted they might do “anything”, even use nuclear weapons, to force concessions in Vietnam and alarm the Soviet politburo.

Nixon’s White House chief of staff, H.R. Haldeman, recalled the president demanding Moscow and Hanoi see him as a man “with his hand on the nuclear button”.

The gambit dovetailed with a bold diplomatic inversion. By opening to Mao Zedong’s China, Nixon sought to isolate the Soviet Union.

Trump’s ‘reverse Nixon’ efforts

Half a century later, Trump appears to be running the tape backward.

Rather than prying China from Russia, he is testing whether Moscow can be prised from Beijing.

In early April, he imposed a blanket 54% tariff on Chinese goods – yet exempted Russia, Cuba and North Korea from the harshest duties.

The White House has simultaneously floated selective sanctions relief for Moscow if Vladimir Putin shows “flexibility” on Ukraine.

Trump’s boosters call the manoeuvre a “reverse Nixon”: befriend the weaker adversary to hem in the stronger.

Al-Jazeera recently reported senior US officials and analysts believe deepening ties with Russia could splinter the Sino‑Russian axis that has unnerved US strategists for years.

But Foreign Affairs warns that even if Washington dangled lavish incentives, Putin would “play Washington and Beijing off each other” rather than choose sides.

Australia’s Strategic Policy Institute is blunter: the idea of splitting the pair is “a delusion”.

Nor is the madman pose guaranteed to intimidate. Scholars note Nixon’s bluff worked only when coupled with painstaking back‑channel diplomacy; the façade of irrationality still required a coherent end‑game.

Trump’s record of erratic statements on NATO, sudden tariff escalations and social media outbursts risks convincing adversaries that chaos is the message, not the method.

Success would require discipline

Yet, the strategic prize is real.

A durable Sino‑Russian alignment forces Washington to split resources across two theatres, complicates sanctions enforcement, and gives Beijing access to Russian hydrocarbons and military technologies.

Even a partial wedge – Moscow adopting neutrality in a potential Indo‑Pacific crisis, for instance – would lighten America’s load and disadvantage China.

Can Trump craft a credible offer? Tariff exemptions and the hint of sanctions relief are carrots; resumed arms‑control talks and guarantees of Russian equities in a post‑war Ukraine settlement could sweeten the pot.

The sticks are clear: escalating tariffs and technology bans on China, plus renewed US gas exports aimed at undercutting Sino‑Russian energy deals.

The fact CIA Director John Ratcliffe called China the “top national security threat” in his confirmation hearings earlier this year – relegating Russia to a lesser threat – underscores the hierarchy.

Still, success would require disciplined messaging and allied buy‑in, traits not often associated with madman theatrics.

If European and Indo‑Pacific partners suspect Washington will mortgage Ukraine’s security or trade their markets for a fleeting Moscow détente, unity will fray.

For Australia, the stakes are immense

For Canberra, the calculus is stark.

Australia’s primary challenge is a more assertive China, not a distant Russia.

If Trump could drive even a hairline crack between Moscow and Beijing, the Indo‑Pacific balance would tilt in favour of the US and its allies.

A Russia preoccupied with Europe or simply unwilling to share sensitive missile and space technologies would deprive China of critical enablers.

Conversely, a bungled “reverse Nixon” strategy could embolden both autocracies.

Should Putin benefit from US tariff exemptions and sanctions relief while deepening defence ties with Beijing — as recent drone and satellite deals suggest – Australia would face a sharper, more integrated adversarial bloc.

The lesson, for Australia, is to hedge: continue deepening AUKUS technology sharing, accelerate long‑range strike acquisition, and tighten diplomatic coordination with Japan, India and ASEAN states.

For Australia, perched on Asia’s faultline, the stakes are immense. A successful wedge would ease pressure on the “first‑island chain” – the chain of strategic islands that stretches from Japan through Taiwan, the Philippines and Indonesia – and give Canberra precious strategic depth.

A failed gambit risks confronting Australian forces with a tandem of nuclear‑armed revisionists (Russia and China) emboldened by US miscalculation.

Ian Langford does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. To split Moscow from Beijing, Trump is reviving Nixon’s ‘madman diplomacy’. It could backfire badly – https://theconversation.com/to-split-moscow-from-beijing-trump-is-reviving-nixons-madman-diplomacy-it-could-backfire-badly-255878

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-Evening Report: Some Reddit users just love to disagree, new AI-powered troll-spotting algorithm finds

Source: The Conversation (Au and NZ) – By Marian-Andrei Rizoiu, Associate Professor in Behavioral Data Science, University of Technology Sydney

ginger_polina_bublik/Shutterstock

In today’s fractured online landscape, it is harder than ever to identify harmful actors such as trolls and misinformation spreaders.

Often, efforts to spot malicious accounts focus on analysing what they say. However, our latest research suggests we should be paying more attention to what they do – and how they do it.

We have developed a way to identify potentially harmful online actors based solely on their behavioural patterns – the way they interact with others – rather than the content they share. We presented our results at the recent ACM Web Conference, and were awarded Best Paper.

Beyond looking at what people say

Traditional approaches to spotting problematic online behaviour typically rely on two methods. One is to examine content (what people are saying). The other is to analyse network connections (who follows whom).

These methods have limitations.

Users can circumvent content analysis. They may code their language carefully, or share misleading information without using obvious trigger words.

Network analysis falls short on platforms such as Reddit. Here, connections between users aren’t explicit. Communities are organised around topics rather than social relationships.

We wanted to find a way to identify harmful actors that couldn’t be easily gamed. We realised we could, focusing on behaviour – how people interact, rather than what they say.

Teaching AI to understand human behaviour online

Our approach uses a technique called inverse reinforcement learning. This is a method typically used to understand human decision-making in fields such as autonomous driving or game theory.

We adapted this technology to analyse how users behave on social media platforms.

Behavioural analysis could help the fight against the growing problem of online misinformation.
Tero Vesalainen/Shutterstock

The system works by observing a user’s actions, such as creating new threads, posting comments and replying to others. From those actions it infers the underlying strategy or “policy” that drives their behaviour.

In our Reddit case study, we analysed 5.9 million interactions over six years. We identified five distinct behavioural personas, including one particularly notable group – “disagreers”.

Meet the ‘disagreers’

Perhaps our most striking result was finding an entire class of Reddit users whose primary purpose seems to be to disagree with others. These users specifically seek out opportunities to post contradictory comments, especially in response to disagreement, and then move on without waiting for replies.

The “disagreers” were most common in politically-focused subreddits (forums focused on particular topics) such as r/news, r/worldnews, and r/politics. Interestingly, they were much less common in the now-banned pro-Trump forum r/The_Donald despite its political focus.

This pattern reveals how behavioural analysis can uncover dynamics that content analysis might miss. In r/The_Donald, users tended to agree with each other while directing hostility toward outside targets. This dynamic may explain why traditional content moderation has struggled to address problems in such communities.

Soccer fans and gamers

Our research also revealed unexpected connections. Users discussing completely different topics sometimes displayed remarkably similar behavioural patterns.

We found striking similarities between users discussing soccer (on r/soccer) and e-sports (on r/leagueoflegends).

This similarity emerges from the fundamental nature of both communities. Soccer and e-sports fans engage in parallel ways: they passionately support specific teams, follow matches with intense interest, participate in heated discussions about strategies and player performances, celebrate victories, and dissect defeats.

Despite their differences, fans of soccer and the online multiplayer battle game League of Legends behave in very similar ways online.
Vasyl Shulga/Shutterstock

Both communities foster strong tribal identities. Users defend their favoured teams while critiquing rivals.

Whether debating Premier League tactics or League of Legends champions, the underlying interaction patterns – the timing, sequence and emotional tone of responses – remain consistent across these topically distinct communities.

This challenges conventional wisdom about online polarisation. While echo chambers are often blamed for increasing division, our research suggests behavioural patterns can transcend topical boundaries. Users may be divided more by how they interact than what they discuss.

Beyond troll detection

The implications of this research extend well beyond academic interest. Platform moderators could use behavioural patterns to identify potentially problematic users before they’ve posted large volumes of harmful content.

Unlike content moderation, behavioural analysis does not depend on understanding language. It is hard to evade, since changing one’s behavioural patterns requires more effort than adjusting language.

The approach could also help design more effective strategies to counter misinformation. Rather than focusing solely on the content, we can design systems that encourage more constructive engagement patterns.

For social media users, this research offers a reminder that how we engage online – not just what we say – shapes our digital identity and influences others.

As online spaces continue to grapple with manipulation, harassment and polarisation, approaches that consider behavioural patterns alongside content analysis may offer more effective solutions for fostering healthier online communities.

Marian-Andrei Rizoiu receives funding from the Advanced Strategic Capabilities Accelerator, the Australian Department of Home Affairs, the Defence Innovation Network, and the National Science Centre, Poland.

Lanqin Yuan and Philipp Schneider do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Some Reddit users just love to disagree, new AI-powered troll-spotting algorithm finds – https://theconversation.com/some-reddit-users-just-love-to-disagree-new-ai-powered-troll-spotting-algorithm-finds-255879

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-OSI Global: How Donald Trump’s assault on universities echoes earlier American conservative ideas

Source: The Conversation – Canada – By Michael Williams, Professor of International Politics, L’Université d’Ottawa/University of Ottawa

Fifty years ago, the American philosopher and conservative thinker James Burnham wrote his most infamous book, The Suicide of the West: An Essay on the Meaning and Destiny of Liberalism.

Burnham argued that liberalism — which he associated with unbridled individualism and excessive belief in human progress — was eroding the foundations of the West’s social orders and, equally importantly, its geopolitical power.

In an ironic twist, it’s not liberals ushering in the decline of America in contemporary times. Burnham’s acolytes in Donald Trump’s administration are busy doing that work.

Influence on the American right

It is easy to recognize Burnham’s ideas in the arguments and actions of the Trump administration.

In both The Suicide of the West and his previous 1941 bestseller, The Managerial Revolution, Burnham argued that liberalism’s individualism weakened social bonds and national allegiance. At the same time, it promoted the rise of a new class of experts that eroded democracy and individual rights under the guise of acting for the common good.

This “new class” of highly educated, managerial elites had come to dominate virtually all aspects of life, from business and bureaucracy to commerce, culture and education.

Ruling through their claims to expertise, Burnham argued that these elites spread relativistic liberal values that undermined social cohesion and national confidence, sapping the West’s ability to define and defend its fundamental values.

If these trends continued, he warned, the West would not long survive. Burnham exercised an important influence on the American right from the 1950s through the 1970s, and near the end of his life received the Presidential Medal of Freedom from Ronald Reagan. Yet by the 1990s, his ideas had fallen out of fashion and few remembered his warnings.

Rediscovered by radical conservatives

Recently, however, Burnham’s provocative ideas have resurfaced as one of the most important intellectual lineages underpinning American radical conservatism and its attacks on “elite institutions.”

In his writings, and those of his followers such as Samuel Francis, a range of political and intellectual figures have found the ideological ammunition needed to launch their crusade against liberalism in order to save the West — or in the case of the U.S., to “Make America Great Again.”

Read more:
Why the radical right has turned to the teachings of an Italian Marxist thinker

JD Vance’s attack on Europe’s democratic credentials, Elon Musk’s DOGE determination to “deconstruct” the administrative state and the Trump administration’s assaults on elite universities all reflect Burnhamite ideas.

Risk bringing about America’s decline

There is considerable irony in this situation. Most obviously, Burnham was wrong about the self-inflicted death of the West. Contrary to his predictions, liberalism did not lead to the erosion of western global power.

Far from collapsing, the United States and its allies fought the Cold War to a victorious conclusion and by the turn of the 20th century emerged with a power and dominance that Burnham could scarcely have imagined. Liberalism was the reigning ideology. American and western commerce, culture, science and technology dominated the world.

Yet the greatest irony is that Burnham’s followers risk bringing about the very situation he sought to avoid – the decline of America and its dominant status.

Nowhere is this clearer than in the attack on elite universities, where no one should not be misled by charges of antisemitism.

Important as addressing antisemitism is, this framing distracts from the ways that the right’s attack on universities are part of its wider assault the foundations of “new class” power.

Tech leadership, geopolitical dominance

In this broader campaign, leading illiberal zealots in the Trump administration are pursuing policies that will damage the foundations of American power far more than liberalism ever did.

Most obviously, the attacks on universities threaten U.S. technological leadership, since research universities remain an indispensable site of basic research, innovation and next-generation training — something especially vital at a time when the country’s leadership in these areas is challenged in ways unseen for nearly half a century.

Read more:
Three scientists speak about what it’s like to have research funding cut by the Trump administration

At the same time, assaults on academic freedom threaten the considerable cultural power and prestige that, as Burnham was well aware, are vital areas of geopolitical struggle.

Finally, these policies undermine the American ability to attract the best and the brightest from around the world — a capacity that has long underpinned its dominance in science and innovation, and ultimately its global influence.

Diminished intellectual capital

One might be tempted to say: fine, if America no longer values its intellectual capital, other countries can reap the benefit by attracting the expertise it shuns. To some degree, this may be true.

But no western country or group of countries – such as the EU – possesses the institutional research capacity, network density and depth of funding found until now in the U.S.

At best, a more fragmented, diffuse and less impactful situation is likely to occur, with America weakened and the benefits gained by others unlikely to make up the balance. The West as a whole is likely to emerge weaker rather than stronger.

Geopolitical decline

Recognizing these negative outcomes does not require treating elite universities as paragons of virtue or viewing higher education as beyond reproach. Nor are today’s Burnhamites completely delusional. Increased inequality, economic dislocation and the death of local industries have followed in the footsteps of liberal globalization.

Read more:
How Commonwealth universities profited from Indigenous dispossession through land grants

Cultural divides are significant, even if they are often polarized for political purposes. But addressing such issues demands serious engagement, not simplistic accusations of elite decadence and divisive political rhetoric. Crucially, it requires seeing elite (and other) universities as sources of global power as well as sites of education.

The conservative columnist Irving Kristol once said that politics is a struggle over “who owns the future.”

Materially and ideologically, Burnham’s contemporary followers are making sure that America will no longer be on the winning side of this struggle. Their efforts to “make America great again” misunderstand important parts of what made it great in the first place. The most likely outcome will be the decline, not the recovery, of America.

Michael Williams receives funding from the Social Sciences and Humanities Research Council of Canada.

Rita Abrahamsen receives funding from Social Sciences and Humanities Research Council of Canada (SSHRC)

– ref. How Donald Trump’s assault on universities echoes earlier American conservative ideas – https://theconversation.com/how-donald-trumps-assault-on-universities-echoes-earlier-american-conservative-ideas-255470

MIL OSI – Global Reports –

May 9, 2025
MIL-OSI USA: Brownley and House Natural Resources Democrats Reject Republicans’ Plan to Sacrifice our Public Lands, Waters and Wildlife for Billionaire Tax Cuts
Source: United States House of Representatives – Julia Brownley (D-CA)
Washington, DC – On Tuesday, Congresswoman Julia Brownley (CA-26) and House Natural Resources Committee Democrats rejected House Republicans’ plan to sell off our lands, waters, and wildlife to fund tax cuts for billionaires in the Committee’s portion of the Republican reconciliation package. Democrats were united in the bipartisan opposition to a Republican amendment offered in the dead of night to sell off thousands of acres of public lands. While House Republicans remained silent, Democrats presented a unified front to protect communities, the American taxpayers, and our most cherished places.

“Republicans have launched one of the most egregious attacks on our public lands, our waters, and our health that we have ever witnessed. It hands over our national parks, forests, and precious natural resources to oil and gas corporations, putting their profits over the safety and well-being of the American people,” said Congresswoman Brownley. “In exchange for giveaways to the wealthiest polluters, American families will face higher energy costs, dirtier air and water, and more frequent environmental disasters. This is the same ‘polluters over people’ agenda that has defined the Trump Administration, where corporate greed comes first and the American people pay the price. This Republican proposal will add billions to the deficit while selling off our environment, our economy, and our future to the highest bidder. This bill is shameful, and the American people deserve better.”

“Republicans just rammed the most extreme, anti-environment legislation in American history through the Natural Resources Committee. It’s a billionaires-first, Americans-last giveaway to benefit Big Oil and polluters,” said Ranking Member Jared Huffman (CA-02). “It guts clean air and water protections, slashes funding for our national parks, and sells off, auctions off, and even allows for giving away our public lands to special interests. For the first time, Americans who simply want their voices heard on Big Oil projects on federal land will be slapped with fees for daring to protest. House Republicans not only voted in lock-step for this cartoonishly extreme bill, they refused to participate in any public debate or discussion about it. I’m sure they had plenty of discussion with their corporate polluter puppet masters, but in the only public hearing before this bill goes to the House Floor they refused to even discuss it. The American people deserve better policy and process than what they’re getting from this GOP Congress. I’m proud that Democrats showed up and fully engaged in debating and challenging this terrible bill. We fought back. And we’ll keep fighting for Americans’ basic freedoms, which include clean air, safe water, healthy communities, and a livable planet for future generations.”

“The only thing these budget gimmicks will do is drive up Big Oil profits, CEO pay, and shareholder dividends at the expense of our public lands and the American taxpayer,” said Congresswoman Yassamin Ansari (AZ-03). “We should be caring about the everyday Americans who are going to be suffering from the consequences of these decisions for years. Our constituents, who are already facing a climate crisis with heat wave after heat wave, who are getting sick from the pollution released by coal fired power plants and petrochemical facilities next door, all compounded by threats of serious cuts to Medicaid healthcare coverage.”

“House Republicans are once again putting polluters over people. But as a mother, I refuse to let my children’s future be auctioned off to Big Oil. I offered common-sense amendments that range from blocking funds to agencies that refuse to comply with the courts to stopping oil and gas drilling near schools and hospitals,” said Congresswoman Maxine Dexter (OR-03). “This bill is a giveaway to Big Oil and billionaires. My amendments demand House Republicans choose: people or polluters?”

“Instead of advancing a budget that helps address the challenges Americans are confronting, House Republicans are combining the most extreme attack on our nation’s natural resources with enormous cuts to Medicaid, Social Security, and other critical programs working families depend on every single day,” said Congresswoman Debbie Dingell (MI-06). “We should be focusing on expanding public access to federal lands, not auctioning them off. And we should be investing in our National Parks System and National Wildlife Refuges, not making it harder for Americans to visit these special places. This bill doesn’t put Americans first—it gives massive handouts to pad polluters’ pockets with no regard for the environment.”

“This is a fire sale on our federal land and waters,” said Congresswoman Sarah Elfreth (MD-03). “This bill reduces corporate fees and eliminates environmental and judicial safeguards that our constituents deserve. And, all for what? There is no guarantee that any of those resources will benefit Americans or lower the cost of energy for our taxpayers. We’ll still be exporting this oil just like before. We’ll still be importing oil to our refineries. We’re putting at real risk the natural resources and national security assets that I’ll address with my amendments. Taxpayers will once again be footing the bill for large corporations from all over the world who score a lease to pillage our land with no recourse. I believe that our taxpayers simply deserve better.”

“This bill is a giveaway to big oil and gas companies at the expense of our environment, workers, and communities,” said Congresswoman Val Hoyle (OR-04). “Instead of investing in bipartisan priorities like wildfire prevention or strengthening our coastal communities, it prioritizes polluters and weakens the very protections Americans rely on. I stand firmly against this reckless and misguided approach.”

“This bill is nothing more than a billion-dollar giveaway to corporations,” said Congresswoman Teresa Leger Fernández (NM-03). “House Republicans are selling off our lands, slashing corporate royalty rates, and raising fees on clean energy—all to pay for tax breaks for billionaires. They’re making our families pay the price in higher energy bills, polluted water, and more extreme climate disasters. I offered amendments to protect Tribal sovereignty, keep revenues in oil and gas producing states like New Mexico, and block foreign adversaries from exploiting our resources. These are common sense protections—but Republicans chose to protect polluters over working families.”

“The devastating effects of climate change will cost us trillions of dollars and lead to catastrophic threats to our civilization,” said Congressman Dave Min (CA-47). “We have both a moral and economic imperative to fight back and give our children the opportunity to grow up in a world where they can breathe clean air, drink clean water, and have the freedom to chase the American dream. That’s why I led four amendments to stand up for our environment and fight back against the Trump administration.”

“The GOP is trying to pass a massive tax break to billionaires, and it will cost the American people $7 trillion on the backs of the American people and the expense of the environment,” said Congresswoman Melanie Stansbury (NM-01). “I was truly shocked when I read this reconciliation package before the Natural Resources Committee. It has mandatory oil and gas leasing, mining, and logging requirements. It gives away public lands and resources, not to the highest bidder, but to the lowest bidder. And, it takes away the rights of the American people to participate in planning, permitting, and holding bad actors accountable. That means impacts on public lands and waters without accountability. Furthermore, it is based on a completely false premise that will undermine the protection of our economy, our communities, and the environment. That’s why I am prepared to sit here as long as it takes to fight this bill.”

Background

House Republicans are squandering Americans’ money, health, and safety to pad polluters’ pockets. The House Natural Resources Committee’s portion of the Republican reconciliation package, which was pushed through without support from Committee Democrats, does the following:
- Instantly boosts big oil and gas company profits by letting them drill and frack at bargain-basement prices while robbing taxpayers blind.
- Puts polluters before people by letting the wealthy companies pay for legal immunity for inadequate environmental reviews and slapping Americans with exorbitant fees to protest oil and gas pollution.
- Slashes funding for critical and popular public services like NOAA’s coastal restoration and resilience efforts and the National Parks workforce, making it harder for Americans to protect their communities from natural hazards and visit our nation’s most scenic and inspiring places.
- Locks up 4 million acres for unprofitable coal mining – more land than the entire state of Connecticut – taking our energy policy back to the 19th century.
- Mandates dirty mining and drilling deals that will create toxic disasters in our nation’s most pristine lands and waters, permanently polluting places like the Boundary Waters and the Arctic National Wildlife Refuge.
- Crushes clean energy development by jacking up fees for wind and solar while slashing fees for oil and coal.
- Wipes out protections for endangered species, including dooming the planet’s most endangered whale to extinction by waiving all sensible safeguards for offshore oil and gas operations.
- Sells off public lands to pay for handouts to big oil and tax cuts for billionaires – a surprise, late-night amendment paves the way for a fire sale of public lands.
Republicans had the opportunity to support common-sense safeguards and improve the bill. However, they rejected numerous Democratic amendments, including those to do the following:

Bolster essential and lifesaving public services:
- Congresswoman Brownley’s amendment (#65) redirecting funding to NOAA climate monitoring, weather forecasts, and disaster preparedness.
- Congressman Magaziner’s amendment (#213) striking recissions of IRA funds for National Oceanic and Atmospheric Administration investments in coastal communities and climate resilience and facilities.
- Congresswoman Leger Fernandez (#69) and Representative Hoyle’s (#70) amendments to fund wildland firefighting and fuels reduction.
- Congresswoman Randall’s amendment (#18) to fund the Bureau of Indian Education, and Congresswoman Ledger Fernandez’s amendment (#38) to fund the Indian Health Service.
Hold oil, gas, and mining companies accountable and ensure a fair return for taxpayers:
- Congresswoman Brownley’s amendment (#61) to require DOI to assess a fee on oil and gas operators to pay for the decommissioning of offshore pipelines in the event of bankruptcy.
- Congressman Min’s amendment (#44) to require DOI to increase financial assurances from oil and gas companies before reduced royalties can take effect.
- Congresswoman Ansari’s amendment to (#19) to deny new leases for oil and gas companies if they have been found liable for collusion.
- Congresswoman Stansbury’s amendment (#9) to prevent bad actor mining companies from operating on federal land if they are owned by foreign adversaries, have a history of using slave labor, or otherwise break the law.
Prevent dangerous pollution:
- Congresswoman Elfreth’s amendment (#129) to prohibit offshore drilling where the Defense Department has determined it is incompatible with military readiness, including off the coast of Virginia, other Atlantic Coast states, and the Eastern Gulf.
- Ranking Member Huffman’s amendments (#20 and #35) to protect the Arctic National Wildlife Refuge and the Boundary Waters.
- Congresswoman Rivas’s amendment (#210) striking the rescission of funding for the Council on Environmental Quality’s environmental justice screening tool.
Stop corruption and illegal actions:
- Congresswoman Rivas’s amendment (#183) prohibiting funding for new contracts with Elon Musk’s companies until Inspectors General determine there are no conflicts of interest.
- Congresswoman Ansari’s amendment (#301) striking the text of the bill and inserting the STOCK Act 2.0, to prevent government officials from being able to trade individual stocks.
- Congresswoman Stansbury’s amendment (#150) directing funds to applicable Inspectors General to report to Congress on the impacts of the Department of Government Efficiency (DOGE) actions on staffing, program services, funding, and data security.
Ensure healthy and accessible public lands and waters:
- Congressman Neguse’s amendment (#139) striking the language that rescinds funding National Park Service staffing.
- Congressman Soto’s amendment (#13) to redirect funding to coral reef conservation.
- Congresswoman Randall’s amendment (#144) restoring funding for the Fish and Wildlife Service fish passage restoration program.
- Congresswoman Dingell’s amendment (#82) to prohibit any recissions of funds for Great Lakes fisheries, harmful algal blooms, and resilience.
Protect Americans’ rights to provide public input:
- Congresswoman Dexter’s amendment (#15) striking protest filing fees.
- Ranking Member Huffman’s amendment (#247) striking the section creating a “pay-to-play” process for NEPA.
Advance clean and affordable energy:
- Resident Commissioner Hernández’s amendment (#201) to ensure utility-scale solar financing is implemented on schedule.
- Congressman Min’s amendment (#45) preventing lease sales until the Trump Administration’s national energy policy includes wind and solar energy.
- Congresswoman Hoyle’s amendment (#186) to ensure the recent firings at the Power Marketing Administrations will not result in a loss of power for ratepayers.
A full list of amendments offered by Committee Democrats and blocked by Republicans can be found here.

###

Issues: 119th Congress, Climate Crisis, Disaster Relief, Energy and Environment

MIL OSI USA News –
May 9, 2025
MIL-OSI USA: Pressley, Thompson, Markey, McGovern, Carter Continue Investigation Into Conditions at ICE Facilities After Hearing Allegations of Medical Neglect

Source: United States House of Representatives – Congresswoman Ayanna Pressley (MA-07)

Letters Follows Lawmakers’ Visit to Louisiana Facilities Where Rümeysa Öztürk and Mahmoud Khalil are Being Held

Text of Letter (PDF)

WASHINGTON – Congresswoman Ayanna Pressley (MA-07), along with Congressman Bennie G. Thompson (MS-02), Ranking Member of the House Homeland Security Committee, Senator Edward J. Markey (D-MA), and Congressmen James P. McGovern (MA-02) and Troy A. Carter Sr. (LA-02), sent a letter to U.S. Immigration and Customs Enforcement (ICE) seeking more information on the detention conditions of immigrants held at the Central Louisiana ICE Processing Center (CLIPC) and the South Louisiana ICE Processing Center (SLIPC) after an oversight trip to the facilities last month.

Both facilities have long faced allegations of inhumane treatment and poor detention conditions. During the visit, Members received allegations that detainees at the facilities have had miscarriages – and may not be receiving adequate maternal healthcare or proper cancer screenings.

“During our oversight visit to the facilities, we observed troubling detention conditions and received significant allegations about mistreatment from detainees,” the lawmakers wrote in their letter. “We heard from women who felt lumps in their breasts but were not provided appropriate medical attention; witnessed a pregnant mother with medical risks and detention staff unprepared for the birth of a child; observed men and women suffering respiratory issues in unreasonably cold and humid dormitories; and saw young women shaking and crying in fear of retaliation if they were to speak to Members of Congress.”

Last month, the lawmakers traveled to ICE facilities in Basile and Jena, where Rümeysa Öztürk and Mahmoud Khalil are being unlawfully detained and subjected to inhumane conditions in retaliation for their protected speech. Rep. Pressley, Senator Markey, and Rep. McGovern recounted their harrowing visit at a press conference in Boston.

“While at SLIPC, we received conflicting information from staff about detainees’ allegations. For example, we received deeply troubling information alleging that multiple women at SLIPC suffered from miscarriages while in custody—allegations staff denied,” the lawmakers continued in their letter. “Additionally, medical staff told us that during detainees’ menstrual periods, the facility provided as many menstrual products as requested, yet detainees consistently reported that facility employees regularly withheld not just menstrual products but also toilet paper.”

Yesterday, Pressley, Markey, and McGovern issued a statement applauding the United States Court of Appeals for the Second Circuit for directing the Trump Administration to comply with a lower court order to transfer Rümeysa Öztürk from ICE custody in Louisiana to Vermont.

In a powerful New York Times op-ed, Pressley, Markey, and McGovern discussed their meeting with Ms. Öztürk in detention and warned the American people of the dangers posed by the Trump administration’s unlawful attacks on our constitutional rights to freedom of speech and due process. Full text of the op-ed is available here.

Rep. Pressley, along with Sens. Warren and Markey, have pushed for answers and action since Öztürk’s March arrest. In March, they led over 30 lawmakers in writing to Secretary of Homeland Security Kristi Noem, Secretary of State Marco Rubio, and Acting Director for U.S. Immigration and Customs Enforcement (ICE) Todd Lyons, demanding information about Öztürk’s arrest and detention as well as similar incidents across the country.

In April, the lawmakers sounded the alarm on Öztürk’s medical neglect in DHS custody and renewed urgent calls for her release. Last week, Pressley, Warren and Markey demanded Secretary of State Rubio released any documents related to her arrest after a recent report indicated that an internal State Department memo concluded that the key premise underlying Tufts graduate student Rümeysa Öztürk’s arrest and detention was false. Last month, Congresswoman Pressley issued a statement condemning reports that ICE arrested and detained Rumeysa Ozturk, an international student with legal status in a graduate program at Tufts University. Earlier in the week, Rep. Pressley issued a statement following reports of ICE activity in Boston and other municipalities in Massachusetts.

###

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: Department of Labor files suit alleging US Postal Service wrongfully fired Texas worker for reporting work-related injury

Source: US Department of Labor

CALDWELL, TX – The U.S. Department of Labor has filed suit against the U.S. Postal Service for wrongful termination of an employee who fell while delivering mail and reported the work-related injury.

An investigation by the department’s Occupational Safety and Health Administration found the USPS violated the whistleblower provisions of the Occupational Safety and Health Act by firing the worker on
Feb. 27, 2024, 10 days after the injury was reported.

The department’s suit, filed in the U.S. District Court for the Western District of Texas, asks the court to hold USPS liable for illegal retaliation and require payment of back wages and damages.

OSHA’s Whistleblower Protection Program enforces the whistleblower provisions of 25 whistleblower statutes protecting employees from retaliation for reporting violations of workplace airline, anti-money laundering, commercial motor carrier, consumer product, criminal antitrust, environmental, financial reform, food safety, health insurance reform, maritime, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, safety and health, securities and tax laws. For more information on whistleblower protections, visit

OSHA’s Whistleblower Protection Programs webpage.

Editor’s note: The U.S. Department of Labor does not release the names of employees involved in whistleblower complaints.

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: What They Are Saying: Changes to New York’s Discovery Laws

Source: US State of New York

ollowing the FY26 State Budget agreement, District Attorneys, domestic violence survivor advocates, religious leaders and business groups are voicing their support for essential changes to New York’s discovery laws. Included in this year’s Budget, these discovery reforms build upon Governor Hochul’s record investments in proven crime prevention initiatives, while holding perpetrators accountable and safeguarding the right to a fair and speedy trial in New York State.

Rensselaer County District Attorney and DAASNY President-Elect and Mary Pat Donnelly said, “I am grateful to Governor Hochul for recognizing the important role which Discovery has in the efforts of prosecutors to secure justice for victims in New York State. These changes protect against technical dismissals, and the dangerous consequences of those dismissals. This is a critical investment in public safety; these changes will be effective in promoting a safer New York.”

Albany County District Attorney Lee C. Kindlon said, “I believe in pragmatic solutions to criminal justice issues, so I am grateful for Governor Hochul’s vision and leadership on Discovery reform. These common sense adjustments to the Discovery laws that the Governor fought for will help us restore justice for victims and provide us more tools to promote public safety.”

Wayne County District Attorney Christine K. Callanan said, “The original discovery legislation, while well-intentioned, had unintended consequences that allowed for gamesmanship and resulted in the dismissal of otherwise prosecutable cases. The recent reforms preserve the full disclosure of important discovery materials to defendants, ensuring transparency and fairness, while eliminating procedural loopholes that came at the cost of successful prosecutions and justice for victims. This balanced approach strengthens due process without compromising public safety or victims’ rights.”

Columbia County District Attorney Chris Liberati-Conant said, “The tweaks to the discovery law are a big win for public safety and the people of Columbia County. They uphold the core principles of justice, fairness, and transparency while bringing balance and common sense to the law. Defendants are still entitled to essentially everything in prosecutors’ files — everything they need for their defense. But these changes should end the practice of lying in wait by requiring defense counsel to confer in good faith about any discovery issues and setting a reasonable time limit on discovery motions. No longer should cases be dismissed for technical, minor violations that do not affect the defendant’s ability to prepare a defense. These changes protect crime victims while upholding defendants’ rights and ensuring swift, just, and responsible prosecution of cases. I thank the Governor for her steadfast leadership in support of these needed amendments.”

Tompkins County District Attorney Matthew Van Houten said, “It has always been critically important to provide complete disclosure of the evidence against someone accused of a crime. The changes to New York’s discovery laws continue to protect the rights of the accused while significantly reducing the chance that a case will be dismissed based upon a technicality. These changes represent a commonsense and pragmatic solution that protects the rights and safety of all New Yorkers and I am extremely pleased that this was a priority for Governor Hochul in this year’s budget.”

Ulster County District Attorney Manny Nneji said, “Discovery rules are all about achieving justice for all through a fair and transparent process. The adjustments made by Governor Hochul and our State Legislature will go a long way in eliminating the worries for victims of crime resulting from the aggressive and overzealous abuse of loopholes existing in the original discovery reforms. As a prosecutor who has dealt with these abuses firsthand in homicide cases, I am grateful to the Governor and Legislature for taking action that positively impacts victims of crime in my community.”

Westchester County District Attorney Susan Cacace said, “I am proud to stand alongside Gov. Hochul and my District Attorney colleagues in support of a Fiscal Year 2026 budget that prioritizes public safety. This is a hard-won victory, but one that was undoubtedly worth fighting for. I commend Gov. Hochul’s leadership and the efforts of everyone inside and outside government who brought these reforms over the finish line. This agreement is a win for all New Yorkers who believe crime victims deserve a meaningful chance at securing justice. Though discovery is not often in the public spotlight, it lies at the heart of the criminal justice process. For years, we operated under a status quo that yielded arbitrary disappointments and absurd results. Now, these reforms will help restore the public’s faith in our criminal justice system.”

Dutchess County District Attorney Anthony Parisi said, “As prosecutors, we are dedicated to pursuing justice fairly, ethically, and within the bounds of the law. While the 2019 discovery reforms were well-intentioned, they created significant operational challenges to our Office, and to district attorneys’ offices state-wide. We applaud Governor Hochul and our lawmakers for proposing amendments that preserve the spirit of reform while adding safeguards to prevent unjust dismissals of cases based upon minor technical errors in disclosures. These changes promote fairness by allowing proportionate remedies for procedural errors, protecting both defendants’ rights and public safety. We are happy to hear that Governor Hochul is committed to providing additional funding to district attorneys’ offices for discovery. To implement these reforms effectively, district attorneys’ offices urgently need additional resources. Investment in staffing and technology is essential to uphold these standards and ensure a just, efficient legal system.”

Village of Brightwaters Mayor and President of the Suffolk County Village Officials Association John Valdini said, “On behalf of the Villages across Suffolk County, I would like to thank Governor Hochul for standing up for the victims of crimes with the Discovery Law changes included in this year’s state budget. These necessary changes will help restore balance to our justice system, keep our communities safe and support victims throughout the legal process.”

Westhampton Beach Mayor Ralph Urban said, “Mayor Ralph Urban of Westhampton Beach strongly supports any legislation that will reduce the ‘Revolving Door’ that is currently putting a great deal of stress on our Justice and Police Departments along with putting the public at risk for encountering repeat offenders without relief.”

North Haven Village Mayor Chris Fiore said, “The recent position of the Governor’s office and the revision of the over restrictive discovery laws will proactively address recidivism and make our neighborhoods safer. There’s more to do but these are great first steps.

New York City Council Member Keith Powers said, “Safety is a top priority for all New Yorkers. While we’ve continued to see crime fall, it’s as important as ever that we give prosecutors the tools they need to bring criminals to justice. Tweaks to the state’s discovery law will hold perpetrators accountable while keeping the intention of the original 2019 reforms intact, ensuring speedy trials. I commend Governor Hochul for her work, and applaud the prosecutors who have worked so hard to achieve this agreement.”

New York City Council Member Gale A. Brewer said, “These thoughtful changes to New York’s discovery laws reflect our continued commitment to justice, fairness, and public safety. By listening to the concerns of prosecutors, advocates, and communities across the state, we’ve struck the right balance—ensuring timely access to information, protecting victims, and reinforcing our fundamental promise of due process under the law.”

Southold Town Supervisor Albert J. Krupski, Jr. said, “I am in support of New York State’s effort to change the discovery law to provide better public safety for our communities.”

Monroe County Sheriff Todd K. Baxter said, “On behalf of the Monroe County Sheriff’s Office and the communities we serve, I want to express our appreciation to Governor Hochul for her support of public safety and meaningful discovery reform. This important revision to our discovery laws helps ensure that law enforcement has the tools we need to protect our neighborhoods, while upholding the integrity of our justice system. These changes are necessary across the bail reform spectrum. We are grateful for the willingness to discuss, the willingness to improve.”

Partnership for New York City President & CEO Kathryn Wylde said, “Governor Hochul’s leadership has resulted in adjustments to the discovery law that were necessary to keep New Yorkers safe. Together with leaders Andrea Stewart Cousins and Carl Heastie, she has delivered reform that was a top priority for the city’s employers.”

Greater NY Chamber of Commerce President & CEO Mark Jaffe said, “Kathy Hochul is listening! Our members throughout NY have been frustrated by the 2019 Discovery Reforms that needed to be fixed to protect public safety. The well-meaning reforms had resulted in tens of thousands of dismissals for felony and repetitive misdemeanor cases that too often left law abiding citizens without justice. The Governor’s leadership and conviction has delivered a system that will now protect the accused without sacrificing justice for victims of crime. Again, we must thank Governor Hochul for standing up for our members and providing a safer environment for all those who live, work, and visit NY.”

Manhattan Chamber of Commerce President and CEO Jessica Walker said, “This was a very heavy lift, but the Governor got it done! This is one of those wonky issues that isn’t particularly well-known or understood but which has substantial and far-reaching impacts. It goes to the very heart of public safety and justice in New York. The Governor made a strong case, stood firm, and delivered on her promise to fix the issue. New Yorkers should all be tremendously grateful for her steady leadership.”

Staten Island Chamber of Commerce President & CEO Linda Baran said, “The adjustments to New York State’s discovery law and the investments in our justice system included in the State budget are promising steps towards improving public safety and protecting New Yorkers and business owners. The Chamber is grateful for these improvements and congratulates Governor Hochul and District Attorney McMahon for their efforts in making New York a better and safer place for businesses to thrive.”

Bronx Chamber of Commerce President Lisa Sorin said, “Retail theft continues to threaten the stability of small businesses and commercial corridors across New York City—particularly in the Bronx, where so many local entrepreneurs operate on razor-thin margins. The discovery law changes included in this year’s budget are a critical step toward restoring accountability, protecting small businesses, and making our communities safer for all residents. We commend Governor Hochul and the Legislature for advancing these thoughtful reforms and for recognizing that economic vitality and public safety must go hand in hand.”

Long Island Against Domestic Violence Executive Director Wendy Linsalata said, “LI Against Domestic Violence fully supports efforts to enhance systems that are in place to protect survivor safety and hold those that are responsible for inflicting fear and harm on their partner accountable. Changes to the discovery laws were needed to prevent the dismissal of cases and support prosecution based on the merits of the case while not infringing on the rights of offenders. These changes will provide a positive impact for survivors whom, often feel unheard and discouraged from reaching out for assistance in the future when cases are dismissed.”

Crime Victims Center Executive Director Laura A. Ahearn said, “I applaud Governor Hochul for championing these much needed changes to New York’s discovery laws. These reforms will help ensure victims on Long Island and across the state can finally seek justice based on the facts, not be denied it because of technicalities.”

SEPA Mujer Inc. Executive Director Martha Maffei said, “The strengthened discovery protections in New York State law are a vital step toward justice, ensuring that those who bravely speak up are not further endangered. For many of the immigrant women we serve, this confidentiality is not just a legal right—it’s a lifeline. These changes affirm that survivor safety and due process can coexist, and we will continue to advocate for both.”

Sanctuary for Families CEO Hon. Judy Harris Kluger said, “Governor Hochul and the Legislature have taken a vital step to ensure our justice system works for domestic violence survivors as well as defendants. For years, cases were dismissed over minor procedural errors, leaving survivors without protection and offenders without accountability. By addressing the unintended consequences of our discovery laws, these reforms will help restore survivors’ ability to seek safety and justice through the courts.”

Willow Domestic Violence Center of Greater Rochester President & CEO Meaghan de Chateauvieux said, “Governor Hochul’s proposed discovery reform is a critical step toward strengthening protections for survivors of domestic violence. By ensuring sensitive information is safeguarded and survivors are not retraumatized through the legal process, this proposal prioritizes both justice and safety. We are grateful for the Governor’s leadership and commitment to building a system that better supports those who courageously come forward.”

Brighter Tomorrows, Inc. Executive Director Dolores Kordon said, “Domestic violence victims face many obstacles in their quest for justice. Measures that create a pathway towards safety for themselves and their children is critical. Streamlining the discovery process helps to ensure fairness for victims.”

Beit Simchat Torah Senior Rabbi Emerita Rabbi Sharon Kleinbaum said, “As Senior Rabbi Emerita of Congregation Beit Simchat Torah (CBST), co-founder of the New York Jewish Agenda, and a lifelong advocate for equality, I deeply appreciate Governor Hochul’s leadership in advancing these critical changes to New York’s discovery laws. The discovery amendments that the Governor and the Legislature enacted this budget honor the spirit of the 2019 reforms—protecting the rights of the accused—while addressing unintended consequences that have harmed victims. These thoughtful amendments preserve the rights of the accused and do right by victims, ensuring our justice system works for everyone it touches.”

Garment District Alliance President Barbara Blair said, “The Garment District Alliance thanks governor Hochul and the state legislature for recognizing and addressing the serious need to modify NY’s discovery laws. GDA has been a first-hand witness to a justice system compromised by opportunism with regard to discovery. Strengthening these laws are an improvement step in restoring credibility and fairness to the judicial process.”

Times Square Alliance President Tom Harris said, “We commend Governor Hochul for standing strong and delivering reforms to discovery rules for all New Yorkers so victims will no longer be denied justice for technicalities. New York still has the most transparent criminal justice system and protects the rights of the accused while making sure that New York is safe for all.”

Chinatown Partnership Executive Director Wellington Chen said, “To see and hear directly from the domestic violence advocates and victims talk about their experience and the impacts this change in New York Discovery Laws mean to them make it clear why this is so necessary and why the inscription on the pediment says it all: “the true administration of justice is the firmest form of good government.”

Village Alliance Business Improvement District Executive Director Scott Hobbs said, “We applaud Governor Hochul and the Legislature for advancing thoughtful reforms that bring fairness and accountability back to our justice system. In our community, small businesses were left vulnerable by the well-intentioned changes to the law in 2019, but the unintended consequences led to cases being dismissed on technical grounds—leaving victims without recourse and emboldening repeat offenders. These essential changes will help ensure that crimes against Greenwich Village’s small businesses are taken seriously, that victims can seek justice, and that due process remains protected for all parties.”

Staten Island Economic Development Corporation President & CEO Mike Cusick said, “I applaud Governor Hochul for her efforts to build on record crime prevention investments while safeguarding fair trials and accountability as part of the FY26 State Budget. For our small business owners, this means a justice system that works faster, protects community safety, and supports a more stable environment to live and do business on Staten Island.”

Noir et Blanc Owner Deborah Koenigsberger said, “A done deal! As she promised, Governor Kathy Hochul got it done. So grateful to our Governor who stood her ground on behalf of small businesses like mine! BRAVA Governor! Thank you for fighting with us!”

Family Services CEO Leah Feldman said, “At Family Services, we stand with victims of crime every step of the way. We thank the Governor for treating discovery reform as a human issue. Ensuring trauma-informed and survivor centered systems protects victims’ rights and promotes justice, strengthening the ability of victims to safely participate in the legal processes meant to protect them without being retraumatized.”

Citizens Crime Commission of NYC President Richard Aborn said, “At its core, the criminal justice system must be based on a careful balance. The right of an individual who has been accused of a crime to a fair and open trial is of paramount importance. The government has no greater power than to deprive some one of their liberty. Before it can exercise that power, the government must be held to a standard that ensures a just outcome. The balance is struck when the rights of the accused are carefully juxtaposed with the right of the government to fully present its evidence within constitutional and statutory bounds. With the governor’s steady leadership, the legislature has moved New York State law closer to striking that balance. The changes in the discovery law will continue to offer those accused of crimes very high levels of protection from unjust outcomes while removing obstacles that unfairly impinged on prosecutors’ ability to prove their cases. This is a classic win-win.”

Antioch Baptist Brooklyn Pastor and President of AACEO Rev. Dr. Robert M. Waterman said, “Governor Hochul’s leadership in reforming New York’s Discovery Laws strikes a balance between protecting defendants’ rights and advancing justice for victims—strengthening public safety while ensuring fairness and accountability in our legal system.”

God’s Battalion of Prayer Pastor Rev. Al Cockfield said, “Public safety is the cornerstone of the faith community and of Black and brown communities, and we are grateful for Governor Hochul’s support in keeping us safe. These changes to discovery delicately uphold transparency while targeting repeat offenders who terrorize our city. No New Yorker should be afraid to go to church or take their child to school. Today’s announcement marks a new day in our criminal justice system.”

River of Life Church Pastor Donald Mapes said, “Thank you to Governor Hochul for spearheading the much needed reforms to the Discovery Laws. Lawyers must have the time and evidence they need to better ensure victims here in the Hudson Valley and across the State have the justice they deserve.”

Women’s Equal Justice Director Jane Manning said, “These reforms will make a real difference for survivors and will reduce the number of cases dismissed for trivial technical violations. We still have more work to do, but this bill moves us forward in a powerful way. I cannot say enough how grateful we are to the Governor for standing strong to secure these very significant reforms. Without her commitment to fighting for victims and survivors, this important bill would not have been possible.”

Coalition Against Trafficking in Women Executive Director Taina Bien-Aimé said, “We applaud Governor Hochul for her unflinching commitment to stand with survivors who have endured unspeakable violence at the hands of people who should have instead loved and protected them. The Governor’s vision of justice for victims and survivors of gender-based violence has carried the day in New York with these necessary changes to the discovery law, and is an example for the country as we continue the journey toward equality, especially for women.”

Met Council on Jewish Poverty CEO David G. Greenfield said, “As the largest provider of domestic violence services in New York’s Jewish community, Met Council has seen firsthand the heartbreak when survivors summon the courage to seek justice—only to have their cases dismissed over minor procedural errors. Governor Kathy Hochul’s reforms to the state’s discovery laws directly address this injustice by ensuring that serious cases are no longer derailed by technicalities. These changes restore faith in the legal system and offer survivors a real path to safety and accountability. We applaud Governor Hochul for her unwavering commitment to protecting victims and strengthening justice for all New Yorkers.”

Urban Resource Institute CEO Nathaniel M. Fields said, “URI is grateful to Governor Hochul and the State Legislature for their work to protect survivors of domestic and gender-based violence. The deal struck on discovery strikes the right balance and will ensure that survivors can access justice and safety through the courts. As the largest provider of transitional housing for domestic violence survivors in the country, we look forward to our continued partnership to prevent harm, increase safety and reduce recidivism by investing in violence prevention and accountability work with people who have caused harm.”

Staten Island Community Board 2 Chair Fred Giunta said, “Staten Island Community Board 2 recognizes the importance of updating New York’s Discovery Laws to ensure that survivors have the necessary tools to seek justice, while also upholding the right to a fair and timely trial. These changes are vital for fostering accountability, protecting due process, and strengthening trust in our legal system. We also appreciate Governor Hochul’s commitment to this issue by allocating $135 million in next year’s budget to support its implementation.”

Westerleigh Improvement Society President Mark Anderson said, “We are pleased to hear that Governor Kathy Hochul has signed into law, commonsense changes to the discovery requirements in pending criminal cases. These changes are reasonable not only for the prosecution, but also for the defense. These new requirements create a more productive process by relieving the undue burden of providing unnecessary evidence or omitted or incorrect evidence from causing the case to be prematurely dropped. Provisions are also welcomed, that provide a timely process for challenges of the evidence, which will create an expedited defense for those charged. We are also grateful to our elected state officials and especially the efforts towards this successful legislation by District Attorney Michael McMahon.”

Richmondtown and Clarke Avenue Civic Association President Carol Donovan said, “The 2026 Discovery Laws reforms are welcomed efforts to improve the criminal justice system, and public safety overall. We want to thank Governor Hochul for including these public safety changes in the State budget.”

Port Richmond Strong North Shore Alliance Vice Chair Mario Buonviaggio said, “The critical investments in public safety and changes in the discovery laws for the 2026 State budget will ensure perpetrators are held accountable and victims of crime are not denied justice on technicalities. We thank Governor Kathy Hochul and Staten Island District Attorney Mike McMahon for these critical changes to the discovery laws that will make our local communities safer.”

Forest Regional Residents Civic Association President Neil Anastassio said, “Our civic association supports the discovery changes in the 2026 State budget secured by Governor Hochul, in partnership with our Staten Island District Attorney, which reforms timelines and procedures in criminal trials. These reforms will assure that all evidence is allowed to be considered during trials, thus protecting the rights of those accused as well as the victims of these crimes.”

MIL OSI USA News –

May 9, 2025

MIL-OSI: Best Online Casinos: JACKBIT Ranked As Top Online Casino Of 2025

Source: GlobeNewswire (MIL-OSI)

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Legal Disclaimer

This content is for informational and entertainment purposes only and does not constitute legal, financial, or gambling advice. Information is presented “as is,” without warranties. Readers must verify compliance with local gambling laws. The publisher is not liable for losses or consequences.

Affiliate Disclosure

Some links may be affiliate links, earning a commission at no cost to you. Recommendations are objective, and partnerships do not influence content.

Email: support@JACKBIT.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7307b375-0e00-45a3-aafd-693b0e28892e

The MIL Network –

May 9, 2025

MIL-OSI USA: U.S. Rep. Castor Sounds Alarm After Analysis Exposes Millions of Americans Would Lose Health Care Coverage to Fund Republican Billionaire Tax Giveaway
Source: United States House of Representatives – Reprepsentative Kathy Castor (FL14)

WASHINGTON, D.C. — U.S. Rep. Kathy Castor (FL-14) highlighted a recent analysis of the Republican proposals to cut health services for Americans who rely on Medicaid. The analysis, conducted by the nonpartisan, independent Congressional Budget Office (CBO), exposes the devastating human cost of Congressional Republicans’ proposed tax giveaway to the wealthiest Americans.

“Republicans propose to cut life-saving care for hundreds of thousands of my neighbors across the Tampa Bay area to fund a massive tax cut for billionaires. It’s irresponsible and wrong,” said Rep. Castor. “The non-partisan CBO analysis makes clear Congressional Republicans’ Medicaid proposals will result in millions of Americans losing their health care coverage. Republicans in Congress and President Trump claim that they will not rip health care coverage away. Yet, every single proposal would cause massive benefit cuts and coverage loss for millions, inflicting pain and exorbitant costs on pregnant women, people with disabilities, and seniors. I will not stand for it.”

CBO finds that federal reductions in Medicaid spending will result in states responding by taking a combination of four actions:
- Spending more on Medicaid by using a mix of tax increases and cuts to other programs, such as K-12 education and public safety.
- Cutting payments to health care providers.
- Cutting optional benefits, such as home-based care and mental health care.
- Taking away health insurance from people who rely on Medicaid.
Republicans’ claims that their policies will just reduce so-called waste, fraud, and abuse or that people will not lose their benefits are simply untrue.
- 100 percent of the savings from the policies that shift costs to states come from reducing payment rates to providers, limiting optional benefits, and kicking people off coverage, not eliminating waste, fraud and abuse.
- 100 percent of the savings from rescinding the eligibility and enrollment rules that are on Republicans’ chopping block come from kicking people off Medicaid.
Additional findings include:
- Eliminating states’ ability to use provider taxes will result in 3.9 million Americans losing their health insurance.
- Imposing per capita caps on people eligible for Medicaid through the Affordable Care Act’s Medicaid expansion will eliminate the health insurance coverage of 1.5 million.
- Cutting the Federal Medical Assistance Percentage (FMAP) for Medicaid expansion would result in 2.4 million people losing their health insurance.
- CBO expects that states would reduce enrollment by eliminating optional coverage categories, including Medicaid expansion, and by changing enrollment policies and procedures to make enrollment more challenging to navigate.
- Repealing the Eligibility and Enrollment final rule would result in 2.3 million Americans losing Medicaid coverage, meaning 400,000 people, including children and people with disabilities, would be uninsured. Low-income seniors who retain only Medicare coverage would see premium and co-pay increases and would be unable to access the care they need without the support of Medicaid.
“The Florida Hospital Association and leaders from Tampa Bay area hospitals, including Tampa General Hospital, BayCare, Moffitt Cancer Center, Orlando Health Bayfront, and AdventHealth visited me in Washington this week to express their strong disapproval of the cuts to Medicaid. They emphasized how the harm to Medicaid, patients and providers would negatively impact care for everyone – another reason to stand firm against health care cuts from Medicaid for a tax giveaway that disproportionately benefits the wealthy and the well-connected,” said Rep. Castor.

MIL OSI USA News –
May 9, 2025
MIL-OSI Security: Private School Settles with Justice Department to Address Discrimination Against Children with Disabilities

Source: Office of United States Attorneys

Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on May 8, 2025, Wisconsin Montessori Society, Inc., d/b/a Milwaukee Montessori School (MMS) agreed to injunctive relief and payment of $290,000 to resolve allegations that it failed to provide full and equal enjoyment of its educational services to children with disabilities, in violation of Title III of the Americans with Disabilities Act (ADA), 42 U.S.C. §§ 12131-12189.

MMS is a private day school that offers pre-K through grade 8 education. Private schools, day care centers, and other places of education are generally prohibited from discriminating on the basis of disability under Title III of the ADA. Disabled individuals protected under Title III include both individuals with an actual disability—meaning “a physical or mental impairment that substantially limits one or more major life activities of such individual”—as well as individuals “regarded as having such an impairment.”

Since at least 2018, MMS has discriminated against young children with disabilities. MMS has: (1) denied, on the basis of disability, participation in its educational services to disabled children by expelling and refusing to admit them; (2) denied disabled children equal participation in MMS’s educational services by repeatedly sending them to the office, seating them separately from other students, and sending them home early because of manifestations of their disabilities; and (3) failed to make reasonable modifications for disabled children. MMS’s discriminatory actions are evidenced by the experiences of ten children described in the Settlement Agreement.

“Children with disabilities have the right to access the educational opportunities offered by private schools, including Montessori schools,” said Acting United States Richard Frohling. “This settlement is an important reminder that the ADA’s obligations extend to private schools and their treatment of students with disabilities.”

Under the settlement agreement, MMS will pay monetary damages of $240,000 to compensate aggrieved persons as well as a civil penalty of $50,000 to the United States. It also includes injunctive relief that requires monitoring and reporting, and MMS has voluntarily taken some steps to address the government’s findings.

The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of covered entities. The Department of Justice is also authorized to commence a civil lawsuit in federal court and to seek injunctive relief, monetary damages, and civil penalties.

Assistant United States Attorneys Lisa Yun and Nia Schmaltz represented the government in this matter. The claims resolved by the settlement are allegations only; MMS does not admit liability for the allegations.

# # #

For Additional Information Contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

414-297-1700

Follow us on Twitter

MIL Security OSI –

May 9, 2025
MIL-OSI Video: Department of State Press Briefing – May 8, 2025

Source: United States of America – Department of State (video statements)

Spokesperson Tammy Bruce leads the Department Press Briefing, at the Department of State.

———-
Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

Get updates from the U.S. Department of State at www.state.gov and on social media!
Facebook: https://www.facebook.com/statedept
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Watch on-demand State Department videos: https://video.state.gov/
Subscribe to The Week at State e-newsletter: https://public.govdelivery.com/accounts/USSTATEBPA/signup/32562

State Department website: https://www.state.gov/
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Terms of Use: https://state.gov/tou

#StateDepartment #DepartmentofState #Diplomacy

https://www.youtube.com/watch?v=npPvbKdNI-k

MIL OSI Video –

May 9, 2025
MIL-OSI Australia: Rangers crack down on illegal activity in South Burnett State Forests
Source: Tasmania Police

Issued: 7 May 2025

Queensland Parks and Wildlife Service (QPWS) is issuing a strong reminder to visitors about the serious consequences of illegal activity in State forests and national parks.

Rangers have observed a concerning increase in unsafe and unlawful behaviour across State forests and national parks including Wondai and Benarkin State Forests in recent months, with a number of fines issued over the Easter holiday period.

Of particular concern is the number of adults and children riding unregistered motorbikes, not holding valid driver licences and failing to wear helmets, increasing the risk of serious injury.

Rangers detected an increase in people camping without a permit which impacts on the visitor experience through overcrowding and places unnecessary pressure on facilities and amenities.

Recent enforcement activity has resulted in the issuing of several Penalty Infringement Notices (PINs) including:
- $1209 issued for operating a vehicle with an unrestrained child
- $322 for failure to wear a helmet while riding a motorbike
- $322 for camping without a permit
- $322 for driving/riding an unregistered vehicle
QPWS Senior Ranger Luke stressed that the same rules that apply in public and on public roads also apply in state forests.

“These rules exist for a reason. Those who choose to disregard these regulations are putting themselves and others at risk, damaging these delicate ecosystems, and spoiling the camping experience for responsible visitors.

“A State forest is not a motocross track, and when people go off-road or ride dangerously, they put themselves at risk, destroy vegetation and cause erosion.

“You would not do it in the main street of Wondai, the local botanic gardens or your backyard, so don’t do it in a State forest or national park.”

Ranger Luke also highlighted the importance of camping permits.

“Permits help to prevent overcrowding, protect wildlife and ensure a safe and enjoyable experience for all visitors.

“At just $7.25 per person, a permit is a small price to pay to camp in some of Queensland’s most spectacular locations. Camping illegally can end up being a very costly mistake and can result in a $322 fine.”

QPWS will continue to conduct regular patrols of State forests in the South Burnett including Wondai and Benarkin State Forests, and those caught breaking the law will face heavy penalties.

Any illegal activity in national parks and State forests can be reported anonymously by calling 1300 130 372.

MIL OSI News –
May 9, 2025
MIL-OSI USA: Old Postcards, New Science: Historical Photos Document 92 Years of Coastal Change

Source: US Geological Survey

An innovative study—a collaboration between the University of Lisbon, Portugal, and the USGS—finds that historical photographs and postcards can provide rigorous scientific insight into how shorelines have changed over the past century.

Researchers from the University of Lisbon studying Conceição-Duquesa Beach in Cascais, Portugal, used these ground-based, oblique images to quantitatively track shoreline evolution over 92 years, offering a novel method to understand long-term coastal change with ground-based imagery.

Turning Pictures into Coastal Data

While vertical aerial imagery has been a mainstay of coastal monitoring since the 1940s, and satellite data now revolutionize shoreline studies globally, data from earlier decades are scarce. That’s where ground-based historical images—such as vacation photos, news archives, and old postcards—come in.

In this study, scientists applied a novel image analysis method to postcard images of Conceição-Duquesa Beach from 1930 and 1960, as well as a contemporary smartphone photo from 2022. By registering and aligning the images to modern spatial coordinates, detecting shorelines within the photos, and correcting for perspective distortion and positional uncertainty, they were able to reconstruct past shoreline positions and measure their changes over time.

A Rotating Shoreline

One consistent observation: between the early 20th and 21st centuries, the shoreline at Conceição-Duquesa Beach showed a significant counterclockwise rotation following the construction of the marina in 1998—a shift large enough to exceed any uncertainty in the analysis method. This long-term pattern underscores the significant impact of artificial coastal structures on shoreline dynamics, reinforcing the importance of integrating historical datasets and modern methodologies to assess and manage coastal changes effectively.

Broader Implications for Coastal Science

This study demonstrates how even older historical, corrected ground-oblique photographs can be used to quantitatively assess coastal change. The technique is adaptable, straightforward, and could be used for regions where other historical data sources are unavailable or incomplete.

Historical imagery held by libraries, museums, and other archives could potentially be of use with this methodology. With climate change and sea-level rise making coastal erosion and shoreline retreat more urgent global issues, having a longer historical record can significantly improve models of future change.

Read the study: Historical Coast Snaps: Using Centennial Imagery to Track Shoreline Change.

MIL OSI USA News –

May 9, 2025
MIL-OSI: Kajeet Urges House to Support Schools and Libraries Counting on E-Rate Funding for Hotspots

Source: GlobeNewswire (MIL-OSI)

MCLEAN, Va., May 08, 2025 (GLOBE NEWSWIRE) — Following today’s Congressional Review Act (CRA) block of the Federal Communications Commission Wi-Fi hotspots order, which removes E-Rate funding eligibility for these devices, Kajeet®, a leading provider of managed internet solutions for education, expressed confidence the House of Representatives will recognize the profound benefits of hotspots. To continue its mission, Kajeet affirmed its commitment to honoring E-Rate pricing to help schools and libraries secure critical connectivity.

While the CRA reversal presents a setback to efforts aimed at funding off-campus student Wi-Fi hotspots through E-Rate, Kajeet encourages the House to carefully consider the compelling data demonstrating the effectiveness and safety of managed hotspots. It is an undeniable reality that over 70% of students rely on out-of-school internet access for homework, underscoring the critical need for reliable home connectivity. The pandemic starkly illuminated the deep disparities that exist, with countless families depending on public Wi-Fi at locations like libraries, hospitals, and even fast-food restaurants to enable their students to complete assignments.

“Every day, teachers across the nation grapple with the challenges faced by students who lack internet access at home, a significant barrier to learning in today’s digital world,” said Ben Weintraub, CEO of Kajeet. “We are resolute in our commitment and want to help these impacted districts and libraries pivot quickly.”

Kajeet’s solutions prioritize student safety and security with robust content filtering and management tools that comply with educational requirements and the Children’s Internet Protection Act (CIPA). Last year, Kajeet Sentinel blocked billions of student attempts to access TikTok and other non-educational sites. This regulated filtering, with parameters set by school administrators based on grade level, has proven effective.

Thousands of schools and libraries across the country applied for hotspot funding this year. It is estimated that this reversal could potentially impact more than 6 million individuals nationwide. As districts and libraries now face the pressing task of identifying alternative funding sources, Kajeet stands firm in its commitment to providing affordable and secure connectivity solutions.

“We fully recognize the significant impact this E-Rate reversal for hotspots will have on districts’ carefully laid plans to provide essential off-campus connectivity,” added Weintraub. “By honoring E-Rate pricing, we aim to provide immediate stability and empower districts to continue their indispensable programs without disruption, ensuring that no student is left behind.”

To take advantage of this limited E-Rate offer, please visit our website.

About Kajeet:

Kajeet provides optimized IoT connectivity, software and hardware solutions that deliver safe, reliable, and controlled internet connectivity to nearly 3,000 businesses, schools and districts, state, and local governments. Kajeet’s award-winning management platform, Sentinel®, includes visibility into real-time data usage, policy control management, custom content filters for added security, and multi-network flexibility. Since 2003, Kajeet has helped thousands of organizations connect over a million devices around the world. To learn more, visit kajeet.com

Media Contact:

Linda Jennings, Kajeet Corporate Communications

248-521-3606 ljennings@kajeet.com

The MIL Network –

May 9, 2025
MIL-Evening Report: Pope Leo XIV faces limits on changing the Catholic Church − but Francis made reforms that set the stage for larger changes

Source: The Conversation (Au and NZ) – By Dennis Doyle, Professor Emeritus of Religious Studies, University of Dayton

Newly elected Pope Leo XIV appears at the balcony of St. Peter’s Basilica at the Vatican on Thursday, May 8, 2025. AP Photo/Andrew Medichini

Cardinal Robert Prevost of the United States has been picked to be the new leader of the Roman Catholic Church; he will be known as Pope Leo XIV.

Attention now turns to what vision the first U.S. pope will bring.

Change is hard to bring about in the Catholic Church. During his pontificate, Francis often gestured toward change without actually changing church doctrines. He permitted discussion of ordaining married men in remote regions where populations were greatly underserved due to a lack of priests, but he did not actually allow it. On his own initiative, he set up a commission to study the possibility of ordaining women as deacons, but he did not follow it through.

However, he did allow priests to offer the Eucharist, the most important Catholic sacrament of the body and blood of Christ, to Catholics who had divorced and remarried without being granted an annulment.

Likewise, Francis did not change the official teaching that a sacramental marriage is between a man and a woman, but he did allow for the blessing of gay couples, in a manner that did appear to be a sanctioning of gay marriage.

To what degree will the new pope stand or not stand in continuity with Francis? As a scholar who has studied the writings and actions of the popes since the time of the Second Vatican Council, a series of meetings held to modernize the church from 1962 to 1965, I am aware that every pope comes with his own vision and his own agenda for leading the church.

Still, the popes who immediately preceded them set practical limits on what changes could be made. There were limitations on Francis as well; however, the new pope, I argue, will have more leeway because of the signals Francis sent.

The process of synodality

Francis initiated a process called “synodality,” a term that combines the Greek words for “journey” and “together.” Synodality involves gathering Catholics of various ranks and points of view to share their faith and pray with each other as they address challenges faced by the church today.

One of Francis’ favorite themes was inclusion. He carried forward the teaching of the Second Vatican Council that the Holy Spirit – that is, the Spirit of God who inspired the prophets and is believed to be sent by Christ among Christians in a special way – is at work throughout the whole church; it includes not only the hierarchy but all of the church members. This belief constituted the core principle underlying synodality.

Pope Francis with the participants of the Synod of Bishops’ 16th General Assembly in the Paul VI Hall at the Vatican on Oct. 23, 2023.
AP Photo/Gregorio Borgia

Francis launched a two-year global consultation process in October 2022, culminating in a synod in Rome in October 2024. Catholics all over the world offered their insights and opinions during this process. The synod discussed many issues, some of which were controversial, such as clerical sexual abuse, the need for oversight of bishops, the role of women in general and the ordination of women as deacons.

The final synod document did not offer conclusions concerning these topics but rather aimed more at promoting the transformation of the entire Catholic Church into a synodal church in which Catholics tackle together the many challenges of the modern world. Francis refrained from issuing his own document in response, in order that the synod’s statement could stand on its own.

The process of synodality in one sense places limits on bishops and the pope by emphasizing their need to listen closely to all church members before making decisions. In another sense, though, in the long run the process opens up the possibility for needed developments to take place when and if lay Catholics overwhelmingly testify that they believe the church should move in a certain direction.

Change is hard in the church

A pope, however, cannot simply reverse official positions that his immediate predecessors had been emphasizing. Practically speaking, there needs to be a papacy, or two, during which a pope will either remain silent on matters that call for change or at least limit himself to hints and signals on such issues.

In 1864, Pius IX condemned the proposition that “the Church ought to be separated from the State, and the State from the Church.” It wasn’t until 1965 – some 100 years later – that the Second Vatican Council, in The Declaration on Religious Freedom, would affirm that “a wrong is done when government imposes upon its people, by force or fear or other means, the profession or repudiation of any religion. …”

A second major reason why popes may refrain from making top-down changes is that they may not want to operate like a dictator issuing executive orders in an authoritarian manner. Francis was accused by his critics of acting in this way with his positions on Eucharist for those remarried without a prior annulment and on blessings for gay couples. The major thrust of his papacy, however, with his emphasis on synodality, was actually in the opposite direction.

Notably, when the Amazon Synod – held in Rome in October 2019 – voted 128-41 to allow for married priests in the Brazilian Amazon region, Francis rejected it as not being the appropriate time for such a significant change.

Past doctrines

The belief that the pope should express the faith of the people and not simply his own personal opinions is not a new insight from Francis.

The doctrine of papal infallibility, declared at the First Vatican Council in 1870, held that the pope, under certain conditions, could express the faith of the church without error.

The limitations and qualifications of this power include that the pope be speaking not personally but in his official capacity as the head of the church; he must not be in heresy; he must be free of coercion and of sound mind; he must be addressing a matter of faith and morals; and he must consult relevant documents and other Catholics so that what he teaches represents not simply his own opinions but the faith of the church.

The Marian doctrines of the Immaculate Conception and the Assumption offer examples of the importance of consultation. The Immaculate Conception, proclaimed by Pope Pius IX in 1854, is the teaching that Mary, the mother of Jesus, was herself preserved from original sin, a stain inherited from Adam that Catholics believe all other human beings are born with, from the moment of her conception. The Assumption, proclaimed by Pius XII in 1950, is the doctrine that Mary was taken body and soul into heaven at the end of her earthly life.

The documents in which these doctrines were proclaimed stressed that the bishops of the church had been consulted and that the faith of the lay people was being affirmed.

Unity, above all

One of the main duties of the pope is to protect the unity of the Catholic Church. On one hand, making many changes quickly can lead to schism, an actual split in the community.

In 2022, for example, the Global Methodist Church split from the United Methodist Church over same-sex marriage and the ordination of noncelibate gay bishops. There have also been various schisms within the Anglican communion in recent years. The Catholic Church faces similar challenges but so far has been able to avoid schisms by limiting the actual changes being made.

On the other hand, not making reasonable changes that acknowledge positive developments in the culture regarding issues such as the full inclusion of women or the dignity of gays and lesbians can result in the large-scale exit of members.

Pope Leo XIV, I argue, needs to be a spiritual leader, a person of vision, who can build upon the legacy of his immediate predecessors in such a way as to meet the challenges of the present moment. He already stated that he wants a synodal church that is “close to the people who suffer,” signaling a great deal about the direction he will take.

If the new pope is able to update church teachings on some hot-button issues, it will be precisely because Francis set the stage for him.

Dennis Doyle does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Pope Leo XIV faces limits on changing the Catholic Church − but Francis made reforms that set the stage for larger changes – https://theconversation.com/pope-leo-xiv-faces-limits-on-changing-the-catholic-church-but-francis-made-reforms-that-set-the-stage-for-larger-changes-256181

MIL OSI Analysis – EveningReport.nz –

May 9, 2025
MIL-OSI Global: Pope Leo XIV faces limits on changing the Catholic Church − but Francis made reforms that set the stage for larger changes

Source: The Conversation – USA – By Dennis Doyle, Professor Emeritus of Religious Studies, University of Dayton

Newly elected Pope Leo XIV appears at the balcony of St. Peter’s Basilica at the Vatican on Thursday, May 8, 2025. AP Photo/Andrew Medichini

Cardinal Robert Prevost of the United States has been picked to be the new leader of the Roman Catholic Church; he will be known as Pope Leo XIV.

Attention now turns to what vision the first U.S. pope will bring.

Change is hard to bring about in the Catholic Church. During his pontificate, Francis often gestured toward change without actually changing church doctrines. He permitted discussion of ordaining married men in remote regions where populations were greatly underserved due to a lack of priests, but he did not actually allow it. On his own initiative, he set up a commission to study the possibility of ordaining women as deacons, but he did not follow it through.

However, he did allow priests to offer the Eucharist, the most important Catholic sacrament of the body and blood of Christ, to Catholics who had divorced and remarried without being granted an annulment.

Likewise, Francis did not change the official teaching that a sacramental marriage is between a man and a woman, but he did allow for the blessing of gay couples, in a manner that did appear to be a sanctioning of gay marriage.

To what degree will the new pope stand or not stand in continuity with Francis? As a scholar who has studied the writings and actions of the popes since the time of the Second Vatican Council, a series of meetings held to modernize the church from 1962 to 1965, I am aware that every pope comes with his own vision and his own agenda for leading the church.

Still, the popes who immediately preceded them set practical limits on what changes could be made. There were limitations on Francis as well; however, the new pope, I argue, will have more leeway because of the signals Francis sent.

The process of synodality

Francis initiated a process called “synodality,” a term that combines the Greek words for “journey” and “together.” Synodality involves gathering Catholics of various ranks and points of view to share their faith and pray with each other as they address challenges faced by the church today.

One of Francis’ favorite themes was inclusion. He carried forward the teaching of the Second Vatican Council that the Holy Spirit – that is, the Spirit of God who inspired the prophets and is believed to be sent by Christ among Christians in a special way – is at work throughout the whole church; it includes not only the hierarchy but all of the church members. This belief constituted the core principle underlying synodality.

Pope Francis with the participants of the Synod of Bishops’ 16th General Assembly in the Paul VI Hall at the Vatican on Oct. 23, 2023.
AP Photo/Gregorio Borgia

Francis launched a two-year global consultation process in October 2022, culminating in a synod in Rome in October 2024. Catholics all over the world offered their insights and opinions during this process. The synod discussed many issues, some of which were controversial, such as clerical sexual abuse, the need for oversight of bishops, the role of women in general and the ordination of women as deacons.

The final synod document did not offer conclusions concerning these topics but rather aimed more at promoting the transformation of the entire Catholic Church into a synodal church in which Catholics tackle together the many challenges of the modern world. Francis refrained from issuing his own document in response, in order that the synod’s statement could stand on its own.

The process of synodality in one sense places limits on bishops and the pope by emphasizing their need to listen closely to all church members before making decisions. In another sense, though, in the long run the process opens up the possibility for needed developments to take place when and if lay Catholics overwhelmingly testify that they believe the church should move in a certain direction.

Change is hard in the church

A pope, however, cannot simply reverse official positions that his immediate predecessors had been emphasizing. Practically speaking, there needs to be a papacy, or two, during which a pope will either remain silent on matters that call for change or at least limit himself to hints and signals on such issues.

In 1864, Pius IX condemned the proposition that “the Church ought to be separated from the State, and the State from the Church.” It wasn’t until 1965 – some 100 years later – that the Second Vatican Council, in The Declaration on Religious Freedom, would affirm that “a wrong is done when government imposes upon its people, by force or fear or other means, the profession or repudiation of any religion. …”

A second major reason why popes may refrain from making top-down changes is that they may not want to operate like a dictator issuing executive orders in an authoritarian manner. Francis was accused by his critics of acting in this way with his positions on Eucharist for those remarried without a prior annulment and on blessings for gay couples. The major thrust of his papacy, however, with his emphasis on synodality, was actually in the opposite direction.

Notably, when the Amazon Synod – held in Rome in October 2019 – voted 128-41 to allow for married priests in the Brazilian Amazon region, Francis rejected it as not being the appropriate time for such a significant change.

Past doctrines

The belief that the pope should express the faith of the people and not simply his own personal opinions is not a new insight from Francis.

The doctrine of papal infallibility, declared at the First Vatican Council in 1870, held that the pope, under certain conditions, could express the faith of the church without error.

The limitations and qualifications of this power include that the pope be speaking not personally but in his official capacity as the head of the church; he must not be in heresy; he must be free of coercion and of sound mind; he must be addressing a matter of faith and morals; and he must consult relevant documents and other Catholics so that what he teaches represents not simply his own opinions but the faith of the church.

The Marian doctrines of the Immaculate Conception and the Assumption offer examples of the importance of consultation. The Immaculate Conception, proclaimed by Pope Pius IX in 1854, is the teaching that Mary, the mother of Jesus, was herself preserved from original sin, a stain inherited from Adam that Catholics believe all other human beings are born with, from the moment of her conception. The Assumption, proclaimed by Pius XII in 1950, is the doctrine that Mary was taken body and soul into heaven at the end of her earthly life.

The documents in which these doctrines were proclaimed stressed that the bishops of the church had been consulted and that the faith of the lay people was being affirmed.

Unity, above all

One of the main duties of the pope is to protect the unity of the Catholic Church. On one hand, making many changes quickly can lead to schism, an actual split in the community.

In 2022, for example, the Global Methodist Church split from the United Methodist Church over same-sex marriage and the ordination of noncelibate gay bishops. There have also been various schisms within the Anglican communion in recent years. The Catholic Church faces similar challenges but so far has been able to avoid schisms by limiting the actual changes being made.

On the other hand, not making reasonable changes that acknowledge positive developments in the culture regarding issues such as the full inclusion of women or the dignity of gays and lesbians can result in the large-scale exit of members.

Pope Leo XIV, I argue, needs to be a spiritual leader, a person of vision, who can build upon the legacy of his immediate predecessors in such a way as to meet the challenges of the present moment. He already stated that he wants a synodal church that is “close to the people who suffer,” signaling a great deal about the direction he will take.

If the new pope is able to update church teachings on some hot-button issues, it will be precisely because Francis set the stage for him.

Dennis Doyle does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Pope Leo XIV faces limits on changing the Catholic Church − but Francis made reforms that set the stage for larger changes – https://theconversation.com/pope-leo-xiv-faces-limits-on-changing-the-catholic-church-but-francis-made-reforms-that-set-the-stage-for-larger-changes-256181

MIL OSI – Global Reports –

May 9, 2025
MIL-OSI Global: How the Take It Down Act tackles nonconsensual deepfake porn − and how it falls short

Source: The Conversation – USA – By Sylvia Lu, Faculty Fellow and Visiting Assistant Professor of Law, University of Michigan

The Take It Down bill, co-authored by U.S. Sen. Ted Cruz, R-Texas, easily passed both houses of Congress. President Trump is expected to sign it into law. Andrew Harnik/Getty Images

In a rare bipartisan move, the U.S. House of Representatives passed the Take It Down Act by a vote of 409-2 on April 28, 2025. The bill is an effort to confront one of the internet’s most appalling abuses: the viral spread of nonconsensual sexual imagery, including AI-generated deepfake pornography and real photos shared as revenge porn.

Now awaiting President Trump’s expected signature, the bill offers victims a mechanism to force platforms to remove intimate content shared without their permission – and to hold those responsible for distributing it to account.

As a scholar focused on AI and digital harms, I see this bill as a critical milestone. Yet it leaves troubling gaps. Without stronger protections and a more robust legal framework, the law may end up offering a promise it cannot keep. Enforcement issues and privacy blind spots could leave victims just as vulnerable.

The Take It Down Act targets “non-consensual intimate visual depictions” – a legal term that encompasses what most people call revenge porn and deepfake porn. These are sexual images or videos, often digitally manipulated or entirely fabricated, circulated online without the depicted person’s consent.

The bill compels online platforms to build a user-friendly takedown process. When a victim submits a valid request, the platform must act within 48 hours. Failure to do so may trigger enforcement by the Federal Trade Commission, which can treat the violation as an unfair or deceptive act or practice. Criminal penalties also apply to those who publish the images: Offenders may be fined and face up to three years in prison if anyone under 18 is involved, and up to two years if the subject is an adult.

A growing problem

Deepfake porn is not just a niche problem. It is a metastasizing crisis. With increasingly powerful and accessible AI tools, anyone can fabricate a hyper-realistic sexual image in minutes. Public figures, ex-partners and especially minors have become regular targets. Women, disproportionately, are the ones harmed.

These attacks dismantle lives. Victims of nonconsensual intimate image abuse suffer harassment, online stalking, ruined job prospects, public shaming and emotional trauma. Some are driven off the internet. Others are haunted repeatedly by resurfacing content. Once online, these images replicate uncontrollably – they don’t simply disappear.

In that context, a swift and standardized takedown process can offer critical relief. The bill’s 48-hour window for response has the potential to reclaim a fragment of control for those whose dignity and privacy were invaded by a click. Despite its promise, unresolved legal and procedural gaps can hinder its effectiveness.

NBC News gives an overview of the Take It Down Act.

Blind spots and shortfalls

The bill targets only public-facing interactive platforms that primarily host user-generated content such as social media platforms. It may not reach the countless hidden private forums or encrypted peer-to-peer networks where such content often first appears. This creates a critical legal gap: When nonconsensual sexual images are shared on closed or anonymous platforms, victims may never even know – or know in time – that the content exists, much less have a chance to request its removal.

Even on platforms covered by the bill, implementation is likely to be challenging. Determining whether the online content depicts the person in question, lacks consent and affects the hard-to-define privacy interests requires careful judgment. This demands legal understanding, technical expertise and time. But platforms must reach that decision within 24 hours or less.

On the other hand, time is a luxury victims do not have. But even with the 48-hour removal window, the content can still spread widely before it is taken down. The bill does not include meaningful incentives for platforms to detect and remove such content proactively. And it provides no deterrent strong enough to discourage most malicious creators from generating these images in the first place.

This takedown mechanism can also be subject to abuse. Critics warn that the bill’s broad language and lack of safeguards could lead to overcensorship, potentially affecting journalistic and other legitimate content. As platforms may be flooded with a mix of real and malicious takedown requests – some filed in bad faith to suppress speech or art – they may resort to poorly designed and privacy-invasive automated monitoring filters that tend to issue blanket rejections or err on the side of removing content that falls outside the scope of the law.

Without clear standards, platforms may act improperly. How – and even whether – the FTC will hold platforms accountable under the act is another open question.

Burden on the victims

The bill also places the burden of action on victims, who must locate the content, complete the paperwork, explain that it was nonconsensual, and submit personal contact information – often while still reeling from the emotional toll.

Moreover, while the bill targets both AI-generated deepfakes and revenge porn involving real images, it fails to account for the complex realities victims face. Many are trapped in unequal relationships and may have “consented” under pressure, manipulation or fear to having intimate content about them posted online. Situations like this fall outside the bill’s legal framing. The bill bars consent obtained through overt threats and coercion, yet it overlooks more insidious forms of manipulation.

Even for those who do engage the takedown process, the risks remain. Victims must submit contact information and a statement explaining that the image was nonconsensual, without legal guarantees that this sensitive data will be protected. This exposure could invite new waves of harassment and exploitation.

Loopholes for offenders

The bill includes liability-evasive conditions and exceptions that could allow distributors to escape liability. If the content was shared with the subject’s consent, served a public concern, or was unintentional or caused no demonstrable harm, they may avoid consequences under the Take It Down Act. If offenders deny causing harm, victims face an uphill battle. Emotional distress, reputational damage and career setbacks are real, but they rarely come with clear documentation or a straightforward chain of cause and effect.

Equally concerning, the bill allows exceptions for publication of such content for legitimate medical, educational or scientific purposes. Though well-intentioned, this language creates a confusing and potentially dangerous loophole. It risks becoming a shield for exploitation masquerading as research or education.

Getting ahead of the problem

The notice and takedown mechanism is fundamentally reactive. It intervenes only after the damage has begun. But deepfake pornography is designed for rapid proliferation. By the time a takedown request is filed, the content may have already been saved, reposted or embedded across dozens of sites – some hosted overseas or buried in decentralized networks. The current bill provides a system that treats the symptoms while leaving the harms to spread.

In my research on algorithmic and AI harms, I have argued that legal responses should move beyond reactive actions. I have proposed a framework that anticipates harm before it occurs – not one that merely responds after the fact. That means incentivizing platforms to take proactive steps to protect the privacy, autonomy, equality and safety of users exposed to harms caused by AI-generated images and tools. It also means broadening accountability to cover more perpetrators and platforms, supported by stronger safeguards and enforcement systems.

The Take It Down Act is a meaningful first step. But to truly protect the vulnerable, I believe that lawmakers should build stronger systems – ones that prevent harm before it happens and treat victims’ privacy and dignity not as afterthoughts but as fundamental rights.

Sylvia Lu does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. How the Take It Down Act tackles nonconsensual deepfake porn − and how it falls short – https://theconversation.com/how-the-take-it-down-act-tackles-nonconsensual-deepfake-porn-and-how-it-falls-short-255809

MIL OSI – Global Reports –

May 9, 2025
MIL-OSI USA: Klobuchar Presses for Bipartisan Path Forward on Safe AI Development, Highlights Need for Legislation to Give Americans Control Over Their Voice and Likeness

US Senate News:

Source: United States Senator Amy Klobuchar (D-Minn)
WATCH KLOBUCHAR’S FULL QUESTIONS HERE
WASHINGTON – At a Senate Commerce Committee hearing titled “Winning the AI Race: Strengthening U.S. Capabilities in Computing and Innovation,” U.S. Senator Amy Klobuchar (D-MN) pressed tech leaders on the future of AI development.
Testifying at the hearing were Sam Altman, Co-Founder and CEO of OpenAI; Lisa Su, CEO and Chair of Advanced Micro Devices; Michael Intrator, CEO and Co-Founder of CoreWeave; and Brad Smith, Vice Chair and President of Microsoft.
“I think David Brooks put it the best when he said, ‘I’ve found it incredibly hard to write about AI because it is literally unknowable whether this technology is leading us to heaven or hell.’ We want it to lead us to heaven, and I think we do that by making sure we have some rules of the road in place so it doesn’t get stymied or set backwards because of scams or because of use by people who want to do us harm,” said Klobuchar.
Klobuchar is a leader on efforts to put in place guardrails around the use and development of AI. Last Congress, Klobuchar and Majority Leader John Thune (R-SD) partnered on the Artificial Intelligence (AI) Research, Innovation, and Accountability Act, which would create baseline accountability for AI deployment in high-risk areas, like managing critical infrastructure. The bill would also boost transparency for AI systems that are used to decide a person’s access to health care or housing, or to decide who to hire and fire.
Last month, Klobuchar reintroduced the bipartisan Nurture Originals, Foster Art, and Keep Entertainment Safe (NO FAKES) Act with Senators Chris Coons (D-DE), Marsha Blackburn (R-TN), and Thom Tillis (R-NC). This legislation aims to protect Americans’ voice and likeness and combat the proliferation of AI deepfakes.
Klobuchar’s and Senator Ted Cruz’s (R-TX) bipartisan TAKE IT DOWN Act passed Congress last week – the bill is now headed to the President’s desk to be signed into law. The TAKE IT DOWN Act would criminalize the publication of non-consensual intimate imagery (NCII), including AI-generated NCII, and require social media and similar websites to have in place procedures to remove such content within 48 hours of notice from a victim.
A rough transcript of Klobuchar’s questions is available below. Video is available HERE for download.
Senator Klobuchar: Thank you very much, Senator Cruz. A lot of exciting things with AI, especially from a state like mine that’s home to the Mayo Clinic, with the potential to unleash scientific research. While we’ve mapped the human genome, we have rare diseases that can be solved, so there’s a lot of positive, but we all know, as you’ve all expressed, there’s challenges that we need to get at with permitting reform. I’m a big believer in that. Energy development, thank you, Mr. Smith, for mentioning this with wind and solar and the potential for more fusion and nuclear, but wind and solar, the price going down dramatically in the last few years, and to get there, we’re going to have to do a lot better.
I think David Brooks put it the best when he said, “I found it incredibly hard to write about AI because it is literally unknowable whether this technology is leading us to heaven or hell.” We want it to lead us to heaven, and I think we do that by making sure we have some rules of the road in place so it doesn’t get stymied or set backwards because of scams or because of use by people who want to do us harm.
As mentioned by Senator Cantwell, Senator Thune, and I have teamed up on legislation to set up basic guardrails for the riskiest non-defense applications of AI. Mr. Altman, do you agree that a risk-based approach to regulation is the best way to place necessary guardrails for AI without stifling innovation?
Sam Altman: I do, that makes a lot of sense to me.
Klobuchar: Okay, thanks. And did you figure that out in your attic?
Altman: No, that was a more recent discovery.
Klobuchar: Thank you very good. Just want to make sure. Our bill directs, Mr. Smith, the Commerce Department, to develop ways of educating consumers on how to safely use AI systems. Do you agree that consumers need to be more educated? This was one of your answers to your five words, so I assume you do.
Brad Smith: Yes, and I think it’s incumbent upon us as companies and across the business community to contribute to that education as well.
Klobuchar: Okay, very good. Back to you, Mr. Altman. The Americans rely on AI, as we know, increasingly, on some high-impact problems, to make them be able to trust that we need to make sure that we can trust the model outputs. The New York Times recently reported, earlier this week, that AI hallucinations, a new word to me, where models generate incorrect or misleading results, are getting worse. That’s their words. What standards or metrics does OpenAI use to evaluate the quality of its training data and model outputs for correctness?
Altman: On the whole, AI hallucinations are getting much better. We have not solved the problem entirely yet, but we’ve made pretty remarkable progress over the last few years. When we first launched ChatGPT, it would hallucinate things all the time. This idea of robustness, being sure you can trust the information, we’ve made huge progress there. We cite sources. The models have gotten much smarter. A lot of people use these systems all the time. And we were worried that if it was not 100, you know, .0% accurate, which is still a challenge with these systems, it would cause a bunch of problems. But users are smart. People understand, you know, what these systems are good at, when to use them, when not. And as that robustness increases, which it will continue to do. People will use it for more and more things, but as an industry, we’ve made pretty remarkable progress in that direction over the last couple of years.
Klobuchar: I know we’ll be watching that. Another challenge that has been, we’ve seen, and Senator Cruz worked and I worked on a bill together for quite a while, and that’s the TAKE IT DOWN Act, and that is that we are increasingly seeing internet activity where kids looking for a boyfriend or girlfriend, maybe they put out a real picture of themselves, it ends up being distributed at their school, or they somehow they someone tries to scam them from financial gain, or its AI, as we’ve increasingly seen, where It’s not even someone photos, but someone puts a fake body on there. And we’ve had about over 20 suicides in one year, of young people, because they felt like their life was ruined, because they were going to be exposed in this way. So this bill we passed, and through the Senate and the House, the First Lady supported it, and it’s headed to the President’s desk. Could you talk about how we can build models that can better detect harmful deep fakes? Mr. Smith
Smith: Yeah. I mean, we’re doing that. OpenAI is doing that, and a number of us are. And I think the goal is to first identify content that is generated by AI, and then, often, it is to identify what kind of content is harmful. And I think we’ve made a lot of strides in our ability to do both of those things. There’s a lot of work that’s going on across the private sector and in partnership with groups like NIC MEC to then collaboratively identify that kind of content. So it can be taken down. We’ve been doing this in some ways for 25 years, since the internet, and we’re going to need to do more of it.
Klobuchar: And on the issue, last question, Mr. Chair, since the last one was about your bill, I figure it’s okay. The newspapers and you testified before the Senate Judiciary Committee, Mr. Smith, about the bill Senator Kennedy and I still think that there’s an issue here about negotiating content rates. We’ve seen some action recently in Canada and other places. Can you talk about those evolving dynamics with AI developers and what’s happening here to make sure that content providers and journalists get paid for their work?
Smith: Yeah, it’s a complicated topic, but I’ll just say a couple of things. First, I think we should all want to see newspapers in some form flourish across the country, including, say, rural counties that increasingly have become news deserts, newspapers have disappeared. Second, and it’s been the issue that we discussed in the Judiciary Committee, there should be an opportunity for newspapers to get together and negotiate collectively. We’ve supported that. That will enable them to basically do better. Third, every time there’s new technology, there is a new generation of a copyright debate. That is taking place now. Some of it will probably be decided by Congress, some by the courts. A lot of it is also being addressed through collaborative action, and we should hope for all of these things. To I’ll just say, strike a balance. We want people to make a living creating content, and we want AI to advance by having access to data.
[Sen. Klobuchar followed up with an additional round of questions.]
Klobuchar: I had one more question that I wanted to ask, and it’s related to just the whole deep fake issue, just because Senator Blackburn and Senator Coons and Senator Tillis and I have worked on this really hard, and Blackburn and Coons are in the lead of the bill. But we have recently seen deep fake videos of Al Roker promoting a cure for high blood pressure, a deep fake of Brad Pitt asking for money from a hospital bed. Sony Music has worked with platforms to remove more than 75,000 songs with unauthorized deep fakes, including voices of Harry Styles Beyonce. I recently met – it’s not just famous people – there is a Grammy-nominated artist from Minnesota, talked to him about what’s going on with digital replicas. So there’s a real concern, and it kind of gets at what Senator Schatz and I were talking about earlier with the news bill. But they just wanted to make you all aware of this legislation, because there were some differences on this, and now we have gotten a coalition, including YouTube, supporting it, as well as the Recording Industry Association, Motion Picture Association, SAG AFTRA. So it’s a big deal, and I’m hoping it’s something that you will all look at, but could you just comment – I would go to you, Mr. Smith first, about protecting people from having their likenesses replicated through AI without permission, and even if you all pledge to do it, our obvious concern is that there will, maybe other companies that wouldn’t, and that’s why I think, as we look at what these guard rails are. The protection of digital people’s digital rights should be part of this.
Smith: No, I think you’re right to point to it. It has become a growing area of concern. During the presidential election last year, both campaigns, both political parties, were concerned about the potential for deep fakes to be created. We worked with both campaigns and both parties to address that. We see it being used in really ways that I would call abusive, including of celebrities and the like. I think it starts with an ability to identify when something has been created by AI and is not a genuine, say, photographic or video image. And we do find that AI is much more capable at doing that than, say, the human eye and human judgment. I think it’s right that there be certain guardrails, and some of these we can apply voluntarily. We’ve been doing that across the industry. OpenAI and Microsoft were both part of that last year. And there are certain uses that probably should be considered across the line and therefore should be unlawful. And I think that’s where the kinds of initiatives that you’re describing have a particularly important role to play.
Klobuchar: And could you look at that legislation?
Smith: Absolutely.
Klobuchar: I appreciate it. Mr. Altman, just same question, same thing.
Altman: Of course, we’d be happy to look at the legislation. I think this is a big issue, and it’s one coming quickly… I think there’s a few areas to attack it. You can talk about AI that generates content, platforms that distribute it, how takedowns work, how we educate society, and how we build in robustness to expect this is going to happen. I do not believe it will be possible to stop the generation of the content. I think open source, open weight models are a great thing on the whole, and something we need to pursue, but it does mean that there’s going to be just a lot of these models floating around that can do this, the mass distribution, I think it’s possible to put some more guardrails in place, and that seems important, I but I don’t want to neglect the sort of societal education piece. I think with every new technology, there’s some sort of, almost always some sort of new scams that come, the sooner we can get people to understand these Be on the lookout for them. Talk about this as a thing that’s coming, and then I think that’s happening. I think the better people are very quickly understanding that content can be AI-generated, and building new kinds of defenses in their own minds about it. But still, you know, if you get a call and it sounds exactly like someone you know and they’re panicked and they need help, or if you see a video like the videos you talked about this gets at us in a very deep psychological way. And I think we need to build societal resilience, because this is coming.
Klobuchar: It’s coming, but there’s got to be some ways to – you’ve got to have some to either enforce it, damages whatever. There’s just not going to be any consequences.
Altman: Absolutely, we should have all of that. Bad actors don’t always follow the laws, and so I think we need an additional shield, or whenever we can have them. But yes, we should absolutely have that.
Klobuchar: All right. Look forward to working with you on it.

MIL OSI USA News –

May 9, 2025
MIL-OSI USA: GVP Sullivan Visits Pratt & Whitney Picket Line as Support Pours in for Striking IAM District 26 Members

Source: US GOIAM Union

IAM Local 700 and 1746 (District 26) members at Pratt & Whitney in Middletown and East Hartford, Conn., are on strike to secure a better contract.

Workers are seeking improved wage security, job security, and retirement security. But, the current company proposal do not address their core issues, despite the company’s high profits.

“I stand behind you and we’re going to fight like hell every day to get what you want,” said IAM Eastern Territory General Vice President David Sullivan.

Watch the video report here.
View photo gallery here.

Union representatives and striking members emphasized the support of IAM and highlighted that the strike is driven by a significant rejection of the company’s offer and a strong desire to protect the future for all generations of workers. The difficulties faced by striking workers, such as the cost of childcare, are also mentioned by several members who are walking the picket lines.

IAM members at Pratt and Whitney have also received an outpouring of support from the highest levels of state government and leadership in the U.S. Senate and House of Representatives. Additionally, the striking members at Pratt and Whitney have drawn community support from other labor organizations.

Pratt and Whitney is a leader in manufacturing engines because of their workers, who are critical to the success of our nation’s manufacturing future. I strongly encourage their leadership and the machinists union to come together to reach a fair deal negotiated in good faith.

— Governor Ned Lamont (@GovNedLamont) May 5, 2025

Proud to stand with members of the machinist union to support their work to achieve a fair & reasonable contract. CT is home to the best trained & most highly qualified in the aerospace workforce. pic.twitter.com/s4Ck17A3d5

— Lt. Gov. Susan Bysiewicz (@LGSusanB) May 6, 2025

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To the hardworking members of IAM Local 700 and Local 1746 fighting for better wages, job security, and pensions: we stand with you.

These workers deserve a fair contract and nothing less. https://t.co/YYXdpziZBu

— Chris Murphy 🟧 (@ChrisMurphyCT) May 5, 2025

Proud to join striking Pratt machinists in East Hartford—standing up for fair pay, pensions, job security & more.

— Richard Blumenthal (@SenBlumenthal) May 6, 2025

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MIL OSI USA News –

May 9, 2025

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