Category: Transport

MIL-OSI USA: SECU Foundation Awards $2 Million Grant to Support Expansion of the North Carolina Aquarium at Fort Fisher

Source: US State of North Carolina

Headline: SECU Foundation Awards $2 Million Grant to Support Expansion of the North Carolina Aquarium at Fort Fisher

SECU Foundation Awards $2 Million Grant to Support Expansion of the North Carolina Aquarium at Fort Fisher
jejohnson6
Thu, 02/27/2025 – 15:38

KURE BEACH

SECU Foundation has awarded a $2 million capital grant to the North Carolina Aquarium Society, contributing to the expansion of the North Carolina Aquarium at Fort Fisher (NCAFF). The development project will increase the interactive space at the state’s most visited aquarium and include a new education center to serve North Carolina students.

Operated under the North Carolina Department of Natural and Cultural Resources, the North Carolina Aquariums include three aquariums and Jennette’s Pier. They welcome more than 1.4 million visitors annually. About 500,000 of those guests visit NCAFF, including tens of thousands of students, who visit on field trips. Through engaging and immersive educational activities, the Aquariums foster a deeper understanding and connection to aquatic environments with the hope that visitors are inspired to protect them.

“We are so pleased to be a part of the expansion of the North Carolina Aquarium at Fort Fisher,” said SECU Foundation Board Vice Chair Mona Moon. “With the SECU Foundation grant and the support of many others in the community, improvements made to this landmark Aquarium will propel it to a world-class facility for our state. With a new education center and other exciting additions to be announced later this year, even more visitors from all corners of our state and beyond can engage with our coastal ecosystems and aquatic environments.”

“On behalf of the North Carolina Aquarium Society, we are immensely grateful for this generous grant from the SECU Foundation,” said Society Board Chair Drew Covert. “Among other exciting renovation plans, this grant will fund the creation of a new educational center – one that extends beyond the Aquarium walls to provide truly immersive experiences for students in North Carolina who need it most.”

“We are honored to have the ongoing support of the North Carolina Aquarium Society and their important collaborative work with partners like the SECU Foundation to bolster the North Carolina Aquariums,” said North Carolina Aquarium Division Director Hap Fatzinger. “The North Carolina Aquarium at Fort Fisher renovation and expansion is the most consequential project since the creation of the marine resource centers nearly 50 years ago. We are excited for what’s ahead and the lasting impact this will have on our state.”

About SECU and SECU Foundation

A not-for-profit financial cooperative owned by its members, and federally insured by the National Credit Union Administration (NCUA), SECU has been providing employees of the state of North Carolina and their families with consumer financial services for 87 years. SECU is the second largest credit union in the United States with $53 billion in assets. It serves more than 2.8 million members through 275 branch offices, 1,100 ATMs, Member Services Support via phone, www.ncsecu.org, and the SECU Mobile App. The SECU Foundation, a 501(c)(3) charitable organization funded by the contributions of SECU members, promotes local community development in North Carolina primarily through high-impact projects in the areas of housing, education, healthcare, and human services. Since 2004, SECU Foundation has made a collective financial commitment of over $300 million for initiatives to benefit North Carolinians statewide.

About North Carolina Aquarium Society

The North Carolina Aquarium Society is a nonprofit (501c3) organization dedicated to supporting the North Carolina Aquariums through private fundraising, membership, and revenue generation. Established in 1986, the Society partners with the Aquariums to enhance exhibits, animal care, education programs, and conservation initiatives beyond what state funding provides.

Feb 26, 2025

MIL-OSI USA: North Carolina Rice Festival to Highlight Gullah-Geechee Culture and Heritage at Brunswick Town/Fort Anderson State Historic Site

Source: US State of North Carolina

Headline: North Carolina Rice Festival to Highlight Gullah-Geechee Culture and Heritage at Brunswick Town/Fort Anderson State Historic Site

North Carolina Rice Festival to Highlight Gullah-Geechee Culture and Heritage at Brunswick Town/Fort Anderson State Historic Site
jejohnson6
Thu, 02/27/2025 – 15:31

On Saturday, March 8, Brunswick Town/Fort Anderson State Historic Site will host the North Carolina Rice Festival. The festival celebrates how rice and Gullah-Geechee culture shaped the North Carolina Lowcountry.

The festival will feature over 70 vendors and three stage areas offering lectures, storytelling, children’s crafts, and live music. A full event schedule is available at www.northcarolinaricefestival.org. Festivities will kick off at 9:30 a.m. with the Gullah-Geechee community riverwalk processional. The event ends at 5:30 p.m.

Admission to the festival is free. Parking is available at the state historic site at 8884 St. Philip’s Rd SE in Winnabow. Shuttles will be available to transport visitors from parking locations to the visitor center. No pets are allowed except for service animals.

About Brunswick Town/Fort Anderson State Historic Site
Brunswick Town/Fort Anderson State Historic Site is a major pre-Revolutionary port on North Carolina’s Cape Fear River, Brunswick was abandoned and burned during the American Revolution and never fully recovered. During the Civil War, Fort Anderson was constructed atop the old village site, and served as part of the Cape Fear River defenses below Wilmington before the fall of the Confederacy. Colonial foundations dot the present-day tour trail, which crosses the earthworks of the Confederate fort. The site is located at 8884 St. Philip’s Rd SE, Winnabow, NC 28479. For more information, visit https://historicsites.nc.gov/all-sites/brunswick-town-and-fort-anderson/plan-your-visit or call (910) 371-6613.

About the North Carolina Department of Natural and Cultural Resources
The N.C. Department of Natural and Cultural Resources (DNCR) manages, promotes, and enhances the things that people love about North Carolina – its diverse arts and culture, rich history, and spectacular natural areas. Through its programs, the department enhances education, stimulates economic development, improves public health, expands accessibility, and strengthens community resiliency.

The department manages over 100 locations across the state, including 27 historic sites, seven history museums, two art museums, five science museums, four aquariums, 35 state parks, four recreation areas, dozens of state trails and natural areas, the North Carolina Zoo, the State Library, the State Archives, the N.C. Arts Council, the African American Heritage Commission, the American Indian Heritage Commission, the State Historic Preservation Office, the Office of State Archaeology, the Highway Historical Markers program, the N.C. Land and Water Fund, and the Natural Heritage Program. For more information, please visit www.dncr.nc.gov.

Feb 26, 2025

MIL-OSI USA: Bentonville Battlefield Anniversary Event Set for March 15-16

Source: US State of North Carolina

Headline: Bentonville Battlefield Anniversary Event Set for March 15-16

Bentonville Battlefield Anniversary Event Set for March 15-16
jejohnson6
Thu, 02/27/2025 – 15:21

Experience history come alive at the Bentonville Battlefield State Historic Site 160th anniversary program March 15-16. Thousands of living historians from across the country will descend on Bentonville Battlefield for one of the nation’s largest battle reenactments.

Advanced tickets to view the daily battle reenactments are now on sale. In addition to the daily ticketed battles, spend the day exploring a host of free activities: inspect the soldier’s camps, smell period cooking, listen to lectures, tour the Harper house, learn about 19th-century medicine, shop the dozens of “sutlers” — vendors selling Civil War related items — or just relax while listening to period music. Bring the family and enjoy a day with us at Bentonville Battlefield. Concessions will be provided by numerous food truck vendors.

In 2015, about 60,000 visitors attended the two-day event commemorating the 150th anniversary of the battle. Visitors are strongly encouraged to purchase tickets well in advance of the event. Advanced tickets are $15. A discounted weekend pass is also available for $25 during advanced sales only. Tickets purchased day-of on site are $20 per day. Children aged 10 and under receive free admission.

For more information and to purchase tickets visit www.bentonvillereenactment.com. Tickets can also be purchased at Bentonville Battlefield or by calling (910) 594-0789.

We encourage the public to arrive early to avoid traffic delays. Also, bring blankets or chairs to watch the battles. Spaces are on a first-come, first-serve basis. The reenactment field will be divided into three general admission sections: front rows for sitting on the ground, middle rows for sitting in chairs, and back rows for standing. The battles begin at 2 p.m. on Saturday and 1:30 p.m. on Sunday, with the reenactment field opening two hours beforehand each day.

The 2025 event is sponsored by the Friends of Bentonville Battlefield, Inc., the Johnston County Visitors Bureau and the North Carolina Department of Natural and Cultural Resources. All proceeds from the event support Bentonville Battlefield State Historic Site.

The Battle of Bentonville, fought March 19-21, 1865, involved 80,000 troops in one of the last major actions of the war. A patched together Confederate army under the command of Joseph Johnston failed to halt Union Gen. William T. Sherman’s advance through eastern North Carolina, eventually leading to the largest Confederate surrender of the war at Bennett Place near Durham weeks later.

Bentonville Battlefield is located at 5466 Harper House Road, Four Oaks, N.C. 27524, three miles north of Newton Grove on S.R. 1008, about one hour from Raleigh and about 45 minutes from Fayetteville. For more information, visit www.nchistoricsites.org/bentonvi/bentonvi.htm or call (910) 594-0789.

About the North Carolina Department of Natural and Cultural Resources
The N.C. Department of Natural and Cultural Resources (DNCR) manages, promotes, and enhances the things that people love about North Carolina – its diverse arts and culture, rich history, and spectacular natural areas. Through its programs, the department enhances education, stimulates economic development, improves public health, expands accessibility, and strengthens community resiliency.

The department manages over 100 locations across the state, including 27 historic sites, seven history museums, two art museums, five science museums, four aquariums, 35 state parks, four recreation areas, dozens of state trails and natural areas, the North Carolina Zoo, the State Library, the State Archives, the N.C. Arts Council, the African American Heritage Commission, the American Indian Heritage Commission, the State Historic Preservation Office, the Office of State Archaeology, the Highway Historical Markers program, the N.C. Land and Water Fund, and the Natural Heritage Program. For more information, please visit www.dncr.nc.gov.

Feb 27, 2025

MIL-OSI USA: 2025 Women’s History Month Programs Planned

Source: US State of North Carolina

Headline: 2025 Women’s History Month Programs Planned

2025 Women’s History Month Programs Planned
jejohnson6
Thu, 02/27/2025 – 15:29

Throughout March, in celebration of Women’s History Month, agencies within the N.C. Department of Natural and Cultural Resources will showcase the remarkable contributions of North Carolina women through special programs and exhibits.

Wednesdays and Saturdays throughout March, 10-11 a.m., Women of Somerset Place Tour — Learn about some of the remarkable women who lived and worked at Somerset Place. The 60-minute special tour will focus on the contributions that enslaved and free women made to the development, maintenance, and infrastructure of Somerset Place. The tour will be offered to commemorate Women’s History Month. Guided tour fees of $2 for adults $1 for children are applicable. Group reservations are required for groups of 15 or more.

March 1, 8, 15, 22, 29, 10 a.m. and 1 p.m., Charlotte Hawkins Brown Museum: Dr. Brown and Women’s Suffrage Tours — Take a tour of Canary Cottage and learn about Dr. Charlotte Hawkins Brown and the fight towards equal and women’s right to vote. These tours are offered on Saturdays in March. Registration for this event can be found at the link here (https://www.eventbrite.com/e/dr-brown-and-the-womens-suffrage-movement-tickets-1249327294569?aff=ebdsshcopyurl&utm-campaign=social&utm-content=attendeeshare&utm-medium=discovery&utm-term=listing&utm-source=cp). Registration is not a purchase of tickets. Tickets must be purchased in person on the day of the tour at the visitor center. Ticket prices are $2/adult (13-64 years), $1/adult (65+), and $1/child (12 and under).

March 7, 6-8:30 p.m., CSS Neuse Museum: Female Spy Dinner Theater — Experience the captivating story of Rose O’Neal Greenhow, brought to life by Emily Lapisardi. This remarkable tale of a Confederate female spy promises to enthrall and engage. Dinner and dessert will precede the presentation. This program is appropriate for ages 12 and up. Tickets are $35 per person. The deadline to register is Feb. 28, at 7 p.m. Limited to 100 guests. Ticket link: https://lp.constantcontactpages.com/ev/reg/53t36wd/lp/89be23c6-4d63-423b-9c47-266338e53a59. For more information, please email cssneusegba@gmail.com or call 252-526-9600, ext. 222. This event is hosted by the Friends of the CSS Neuse Museum.

March 8, 8 p.m., North Carolina Museum of Art Film & Lecture: “Song for Imogene” is a film from female-founded and run North Carolina production company, Honey Head Films. The showing will include an artist talk with the director/writer and lead actress. Tickets $10, $5 for Members.

March 13, noon-1 p.m., State Archives: History for Lunch, “Where Did All the Midwives Go?: Statistical Authority in the Regulation of Midwifery in North Carolina, 1900-1940.” — Register in advance for online participation at https://www.zoomgov.com/webinar/register/WN_ag8T1464Q9igwmEL2k69vg#/registration For more information, contact Adrienne Berney, adrienne.berney@dncr.nc.gov; 919-814-6863.

March 19, Noon-1 p.m., Museum of the Albemarle History for Lunch: Harriet Jacobs, A Woman of Conscience — Amanda Irvin, program coordinator at Historic Edenton State Historic Site, will tell the tragic and inspiring tale of Harriet Jacobs, a woman forced to work in the household of an abusive enslaver. After years of threats to herself and her children, Jacobs self-emaciated and hid in the roof space of her grandmother’s house for nearly seven years before her chance to escape via the Maritime Underground Railroad. Discover the story of a woman determined to fight for herself, her children, and later, for others. For additional information, contact Lori Meads at lori.meads@dncr.nc.gov.

March 21, 10 a.m.-4:30 p.m., North Carolina Maritime Museum in Beaufort: N.C. Whales and Whaling Symposium — The history, biology, conservation, and pedagogy of whales and whaling specific to North Carolina will be covered during the North Carolina Maritime Museum’s annual Whales and Whaling Symposium. This year’s symposium, which features an all-female lineup of speakers, will be held at Fort Macon State Park. The program is free. However, pre-registration required due to limited seating; you must register for each program that you plan on attending individually. Register online at ncmaritimemuseumbeaufort.com or by calling 252-504-7758.

March 29, 10 a.m.-3 p.m., North Carolina Maritime Museum at Southport: Deep Dive Into History: “Stitching the 18th Century” — Join museum educators as they focus on the role and creation of clothing in the 18th century: how it defined your status, gender, and even occupation. Visitors will have the opportunity to interact with a mantua maker (a female-only occupation) as she drafts a gown in a day. There will be a variety of clothing on display for visitors to touch and try on during the drop-in program. It is part of the museum’s Deep Dive series, a program designed to give visitors a deeper understanding of our shared past through costumed interpretation. Each Deep Dive will delve into a specific theme in Lower Cape Fear and maritime history.

About the North Carolina Department of Natural and Cultural Resources
The N.C. Department of Natural and Cultural Resources (DNCR) manages, promotes, and enhances the things that people love about North Carolina – its diverse arts and culture, rich history, and spectacular natural areas. Through its programs, the department enhances education, stimulates economic development, improves public health, expands accessibility, and strengthens community resiliency.

The department manages over 100 locations across the state, including 27 historic sites, seven history museums, two art museums, five science museums, four aquariums, 35 state parks, four recreation areas, dozens of state trails and natural areas, the North Carolina Zoo, the State Library, the State Archives, the N.C. Arts Council, the African American Heritage Commission, the American Indian Heritage Commission, the State Historic Preservation Office, the Office of State Archaeology, the Highway Historical Markers program, the N.C. Land and Water Fund, and the Natural Heritage Program. For more information, please visit www.dncr.nc.gov.

Feb 27, 2025

MIL-OSI Security: Dominican national, deported six times previously, sentenced to over 15 years in prison for trafficking fentanyl and heroin

Source: Office of United States Attorneys

RICHMOND, Va. – A national of the Dominican Republic was sentenced today to 15 years and eight months in prison for possession with intent to distribute fentanyl and heroin and illegally reentering the United States after a felony conviction.

According to court documents, on Jan. 18, 2024, a Trooper with the Virginia State Police (VSP) pulled over Gregorio Gustavo DeJesus Santos on I-85 in Mecklenburg County. During that traffic stop, a narcotics canine alerted to the odor of narcotics. VSP searched the car and found a hidden compartment under the passenger seat that extended into the back seat area. The compartment was empty. The Trooper released DeJesus Santos.

Shortly after arriving in North Carolina, DeJesus Santos traveled back into Virginia, where law enforcement stopped the vehicle for a traffic infraction and, again, a narcotics canine alerted to the presence of narcotics in the vehicle. While searching the vehicle, law enforcement located two packages in the hidden compartment. One of the packages contained 200 grams of fentanyl and the other contained 293 grams of a mixture of fentanyl and heroin.

DeJesus Santos acknowledged as part of his guilty plea that he obtained and redistributed at least three additional kilograms of fentanyl.

DeJesus Santos had been found in the United States and removed on six previous occasions, beginning in 1996 and most recently on Oct. 18, 2022, after he had been convicted of a felony drug charge in federal court in the Southern District of New York and released from prison.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Christopher Heck, Acting Special Agent in Charge of Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Washington, D.C.; and Col. Matt Hanley, Superintendent of Virginia State Police, made the announcement after sentencing by U.S. District Judge David J. Novak.

Assistant U.S. Attorneys Angela Mastandrea and Patrick J. McGorman prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-88.

MIL-OSI Security: Clay County Man Sentenced To 27 Months In Federal Prison On Firearm Charge

Source: Office of United States Attorneys

Jacksonville, Florida –Senior United States District Judge Timothy J. Corrigan has sentenced Jackson Richard Perint (28, Clay County) to two years and three months in federal prison for possessing a firearm as a convicted felon. Perint was also ordered to forfeit a SCCY Industries 9mm pistol and ammunition traceable to the offense. Perint was arrested on April 3, 2024, and released. He violated the conditions of his release and was ordered detained on August 15, 2024.

According to court documents and proceedings, on August 8, 2023, a detective with the Clay County Sheriff’s Office Narcotic’s Unit, acting in an online undercover capacity, arranged a drug transaction with Perint. The next day, Perint arrived by car to a predetermined location. Based on a prior suspension of Perint’s driver license, deputies conducted a traffic stop of his car. During a subsequent search of the car, deputies located a 9mm pistol loaded with 11 rounds of ammunition between the driver’s seat and the center console.

At the time of the offense, Perint had nine previous felony convictions, including possession of a weapon by a convicted felon (2021, 2022). As a convicted felon, Perint is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.

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

MIL-OSI Security: Coast Guard issues Captain of the Port order to Puerto Nuevo Terminal for violating hazardous cargo handling permit in San Juan

Source: United States Coast Guard

02/27/2025 03:50 PM EST

The acting commander of U.S. Coast Guard Sector San Juan, Capt. Robert Stiles, issued a Captain of the Port (COTP) Order to Puerto Nuevo Terminals (PNT) port facility, Wednesday, for unlawfully handling dangerous cargo, specifically ammonium nitrate. This action was taken following a routine examination in which Coast Guard inspectors discovered PNT’s non-compliance with previous Coast Guard regulatory and safety orders which suspended PNT’s permit to handle hazardous cargoes as required by law and due to the facility’s lack of adequate firefighting capability. “This is a serious violation creating a dangerous situation at Puerto Nuevo Terminals, which is located next to a liquified natural gas facility,” said Capt. Robert Stiles, acting Coast Guard Sector San Juan commander and Captain of the Port. “The unlawful handling of ammonium nitrate can pose a serious risk to the safety of critical port infrastructure in San Juan Harbor. We are investigating this matter thoroughly and have taken necessary measures to ensure that the Puerto Nuevo Terminals facility is operating in a safe manner. The Coast Guard is committed to the safety and security of the nation’s ports and navigable waterways, and it is our duty to protect them.”

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MIL-OSI: SECU Foundation Initiates Phase Three Disaster Relief Package of $3.45 Million for Western North Carolina

Source: GlobeNewswire (MIL-OSI)

RALEIGH, N.C., Feb. 27, 2025 (GLOBE NEWSWIRE) — The SECU Foundation Board of Directors approved a third phase of Hurricane Helene disaster relief funding totaling $3.45 million for seven non-profit organizations assisting residents and communities in Western North Carolina (WNC). The funding will help address long-term housing needs, resources for at-risk groups, and organizational capacity to meet increased demand for services. Grantees include:

Baptists on Mission (Wake County) – $2 million to repair and rebuild up to 100 damaged homes across the western region, including drywall replacement, roof repair, HVAC replacement, and new flooring.
Asheville Buncombe Community Christian Ministry (Buncombe County) – $500,000 to increase facility capacity and expand staff resources to onboard and manage a corps of volunteers for delivering regional emergency and disaster relief services.
Note in the Pocket (Wake County) – $250,000 to support human resource expansion and deployment for training and volunteer coordination at WNC agencies and to secure temporary warehouse space to accelerate the timeline for processing donated clothing.
Mountain Projects (Haywood and Jackson Counties) – $200,000 to assist with organizational capacity to provide case management for the increased number of displaced individuals and families seeking emergency services.
Hospitality House of Northwest North Carolina (Watauga County) – $200,000 to assist with increased organizational capacity to provide financial crisis assistance, case management for responding to hurricane-related housing needs, and increased food services for displaced individuals and families in their seven-county service area.
Rutherford Housing Partnership (Rutherford County) – $200,000 to increase capacity to fund urgent home repairs, especially for those without insurance or who will not receive government assistance.
Crossnore Communities for Children (Avery County) – $100,000 to support trauma resiliency efforts for neighboring communities impacted by Hurricane Helene and restoration of the storm-damaged Crossnore campus to address trauma-related impact for the children and foster families it serves.

SECU Foundation initially provided a relief package of $3.75 million, then in December added a second phase of giving at $1.75 million. This third phase brings the total to nearly $9 million for relief and recovery efforts.

“We are so grateful to be able to provide additional funding to assist our Western North Carolina communities,” said SECU Foundation Board Chair Chris Ayers. “The grants made to these seven organizations will help address many crucial areas, including food, housing, and restoration of important services. We look forward to seeing the positive impacts of this funding on our neighbors who have been devastated by Hurricane Helene.”

About SECU and SECU Foundation
A not-for-profit financial cooperative owned by its members, and federally insured by the National Credit Union Administration (NCUA), SECU has been providing employees of the state of North Carolina and their families with consumer financial services for 87 years. SECU is the second largest credit union in the United States with $53 billion in assets. It serves more than 2.8 million members through 275 branch offices, 1,100 ATMs, Member Services Support via phone, www.ncsecu.org, and the SECU Mobile App. The SECU Foundation, a 501(c)(3) charitable organization funded by the contributions of SECU members, promotes local community development in North Carolina primarily through high-impact projects in the areas of housing, education, healthcare, and human services. Since 2004, SECU Foundation has made a collective financial commitment of over $300 million for initiatives to benefit North Carolinians statewide.

Contact: Jama Campbell, Executive Director, secufoundation@ncsecu.org

MIL-OSI: Sunrun Reports Fourth Quarter and Full Year 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

Cash Generation of $34 million in Q4 after safe harbor equipment purchases, third consecutive quarter of positive Cash Generation

Paid down $132 million of recourse debt in Q4 with excess cash

Cash Generation guidance of $200 million to $500 million in 2025

Cash Generation guidance of $40 to $50 million in Q1

Net Earning Assets increased to $6.8 billion, including $947 million of Total Cash

Storage Capacity Installed of 392 Megawatt hours in Q4, exceeding high-end of guidance range and representing 78% year-over-year growth, as storage attachment rates reach 62%

Solar Energy Capacity Installed of 242 Megawatts in Q4, within the guidance range, reaching 7.5 Gigawatts of Networked Solar Energy Capacity

SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“We are growing, generating meaningful cash, increasing our book value of deployed systems, and paying down debt. We are poised to further improve our operating and financial results, and deliver a very strong 2025 with meaningful Cash Generation. Our actions to optimize our product mix, prioritize the highest value geographies and routes to market and an intense focus on cost as we grow have resulted in the highest Net Subscriber Values Sunrun has ever reported,” said Mary Powell, Sunrun’s Chief Executive Officer. “We are improving in every dimension we control – focusing on fast, effective execution, delivering strong financial and operating results, gaining share in a disciplined way, while building a long-term foundation of valuable grid resources.”

“In the fourth quarter, we again set new margin records and delivered the third consecutive quarter of Cash Generation. We continue to execute well in the capital markets, raising more than $4 billion in asset-level debt and tax equity financing during 2024, and more than $800 million in non-recourse debt financing year-to-date. We have extended our runway of tax equity commitments and term sheets, including $1.3 billion added year-to-date,” said Danny Abajian, Sunrun’s Chief Financial Officer. “We have a strong balance sheet with no near-term corporate debt maturities and have paid down recourse parent debt by $186 million since March, including a $132 million paydown using excess cash in Q4. As we increase our Cash Generation, we will continue to further pay down parent recourse debt and are committed to a capital allocation strategy beyond this initial de-leveraging period that drives significant shareholder value.”

Fourth Quarter Updates

Storage Attachment Rates Reach 62%: Customer Additions with storage grew more than 50% during the quarter compared to the prior-year period. Storage attachment rates on installations reached 62% in Q4, up from 45% in the prior-year period, with 392 Megawatt hours installed during the quarter. Sunrun has installed more than 156,000 solar and storage systems, representing over 2.5 Gigawatt hours of stored energy capacity.
Continued Strong Capital Markets Execution: In January 2025, Sunrun priced a $629 million securitization of residential solar and battery systems. The securitization is Sunrun’s thirteenth securitization since 2015 and first issuance in 2025. The oversubscribed transaction was structured with three separate classes of A rated notes, only two of which were publicly offered. The weighted average spread of the notes was 197 basis points, which was an improvement of approximately 38 basis points from our prior securitization in September. Similar to prior transactions, Sunrun raised additional capital in a subordinated non-recourse financing, which increased the cumulative advance rate to above 80% as measured against the initial Contracted Subscriber Value of the portfolio.
Paying Down Recourse Debt: We continue to pay down parent recourse debt. During the fourth quarter, we repurchased $125.5 million in principal of our 2026 Convertible Notes. As of December 31, 2024 we had only $7.7 million outstanding of these notes, which we may repurchase in 2025. Since March 31, 2024 we have paid down recourse debt by $186 million, by repurchasing our 2026 Convertible Notes and reducing borrowings under our recourse Working Capital Facility. We have also increased our Total Cash balance by $164 million and grown Net Earning Assets by $1.5 billion. We expect to further pay down our recourse debt in 2025 by $100 million or more. Aside from the $7.7 million outstanding of our 2026 Convertible Notes, we have no recourse debt maturities until March 2027. Over time we will explore further capital allocation options to maximize shareholder value, based on market conditions and our long-term outlook.
Improving Grid Stability with Virtual Power Plants: During 2024, Sunrun’s virtual power plants (VPPs) successfully supported power grids across the country with a combined instantaneous peak of nearly 80 megawatts—a capacity greater than many traditional fossil-fuel power plants. These innovative programs leveraged Sunrun’s fleet of residential solar and battery systems—the largest in America—empowering customers to generate, store, and share their own solar energy. In 2024, more than 20,000 Sunrun customers participated in 16 virtual power plant programs across nine states and territories. From California and Texas to Puerto Rico and New England, the customers’ batteries supplied on-demand, stored solar energy to augment power resources during hundreds of critical energy events.

Key Operating Metrics

In the fourth quarter of 2024, Customer Additions were 32,932 including 30,709 Subscriber Additions. As of December 31, 2024, Sunrun had 1,048,842 Customers, including 889,186 Subscribers. Customers grew 12% in the fourth quarter of 2024 compared to the fourth quarter of 2023.

Annual Recurring Revenue from Subscribers was approximately $1.6 billion as of December 31, 2024. The Average Contract Life Remaining of Subscribers was 17.6 years as of December 31, 2024.

Subscriber Value was $55,811 in the fourth quarter of 2024, a 11% increase compared to the fourth quarter of 2023. Creation Cost was $36,634 in the fourth quarter of 2024, a 1% decrease compared to the fourth quarter of 2023.

Net Subscriber Value was $19,177 in the fourth quarter of 2024. Total Value Generated was $589 million in the fourth quarter of 2024. On a pro-forma basis assuming a 7.3% discount rate, consistent with capital costs observed in the quarter, Subscriber Value was $50,998 and Net Subscriber Value was $14,364 in the fourth quarter of 2024.

Gross Earning Assets as of December 31, 2024, were $17.8 billion. Net Earning Assets were $6.8 billion, which included $947 million in Total Cash, as of December 31, 2024.

Cash Generation was $34.2 million in the fourth quarter of 2024, the third consecutive quarter of positive Cash Generation.

Storage Capacity Installed was 392.0 Megawatt hours in the fourth quarter of 2024, a 78% increase compared to the fourth quarter of 2023.

Solar Energy Capacity Installed was 242.4 Megawatts in the fourth quarter of 2024, a 7% increase compared to the fourth quarter of 2023. Included in this figure is 232.0 Megawatts of Solar Energy Capacity Installed for Subscribers in the fourth quarter of 2024, an 11% increase compared to the fourth quarter of 2023.

Networked Solar Energy Capacity was 7,531 Megawatts as of December 31, 2024. Included in this figure is 6,436 Megawatts of Networked Solar Energy Capacity for Subscribers as of December 31, 2024.

Networked Storage Capacity was 2.5 Gigawatt hours as of December 31, 2024.

The solar energy systems we deployed in Q4 are expected to offset the emission of 4.8 million metric tons of CO2 over the next thirty years. Over the last twelve months ended December 31, 2024, Sunrun’s systems are estimated to have offset 4.0 million metric tons of CO2.

Outlook

Cash Generation is expected to be in a range of $40 million to $50 million in the first quarter of 2025.

For the full-year 2025, Cash Generation is expected to be in a range of $200 million to $500 million.

Storage Capacity Installed is expected to be in a range of 265 to 275 Megawatt hours in the first quarter of 2025, representing approximately 30% growth year over year at the midpoint.

Solar Energy Capacity Installed is expected to be in a range of 170 to 180 Megawatts in the first quarter of 2025, representing approximately flat year over year growth at the midpoint.

For the full-year 2025, the Company expects robust growth in Storage Capacity Installed year over year, and Solar Energy Capacity Installed is expected to be approximately flat year over year.

Fourth Quarter 2024 GAAP Results

Total revenue was $518.5 million in the fourth quarter of 2024, up $1.9 million, or 0%, from the fourth quarter of 2023. Customer agreements and incentives revenue was $388.6 million, an increase of $67.0 million, or 21%, compared to the fourth quarter of 2023. Solar energy systems and product sales revenue was $129.9 million, a decrease of $65.1 million, or 33%, compared to the fourth quarter of 2023. The increasing mix of Subscribers results in less upfront revenue recognition, as revenue is recognized over the life of the Customer Agreement, which is typically 20 or 25 years.

Total cost of revenue was $421.0 million, a decrease of 13% year-over-year. Total operating expenses were $652.6 million, a decrease of 9% year-over-year, on a pro-forma basis to exclude a non-cash goodwill impairment, which was incurred in the fourth quarter of 2024.

Net loss attributable to common stockholders was $2,813.7 million, or $12.51 per basic and diluted share for the fourth quarter of 2024. Pro forma to exclude non-cash impairment charges, results in non-GAAP net income of $360.9 million or $1.41 per diluted share for the fourth quarter of 2024.

Full Year 2024 GAAP Results

Total revenue was $2,037.7 million in the full year 2024, down $222.1 million, or 10%, from the full year 2023. Customer agreements and incentives revenue was $1,505.2 million, an increase of $318.5 million, or 27%, compared to the full year 2023. Solar energy systems and product sales revenue was $532.5 million, a decrease of $540.6 million, or 50%, compared to the full year 2023.

Total cost of revenue was $1,709.2 million, a decrease of 18% year-over-year. Total operating expenses were $2,610.8 million, a decrease of 15% year-over year, on a pro-forma basis to exclude non-cash goodwill impairment, which was incurred in both the full year 2023 and full year 2024.

During the year, Sunrun recorded a non-cash goodwill impairment charge of approximately $3.1 billion. Due to the decline in our stock price, we wrote down our goodwill balance of $3.1 billion in its entirety during the fourth quarter of 2024. The goodwill primarily arose following the stock-for-stock acquisition of Vivint Solar in October 2020, with the majority arising from and determined based on the market capitalizations at the time of the acquisition. The Company recorded a non-cash goodwill impairment charge of $3.1 billion, or $14.05 per basic share, in our Consolidated Statement of Operations for the full year 2024, which was reflected in the Company’s fourth quarter results.

Net loss attributable to common stockholders was $2,846.2 million, or $12.81 per basic and diluted share for the full year 2024. Pro-forma to exclude non-cash impairment charges, results in non-GAAP net income of $333.7 million or $1.33 per diluted share for the full-year 2024.

Financing Activities

As of February 27, 2025, closed transactions and executed term sheets provide us with expected tax equity to fund over 500 Megawatts of Solar Energy Capacity Installed for Subscribers beyond what was deployed through December 31, 2024. Sunrun also has $680 million in unused commitments available in its non-recourse senior revolving warehouse loan after the January securitization, to fund approximately 230 megawatts of projects for Subscribers.

Conference Call Information

Sunrun is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2024 results and business outlook at 1:30 p.m. Pacific Time today, February 27, 2025. A live audio webcast of the conference call along with supplemental financial information will be accessible via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com. The conference call can also be accessed live over the phone by dialing (877) 407-5989 (toll free) or (201) 689-8434 (toll). An audio replay will be available following the call on the Sunrun Investor Relations website for approximately one month.

About Sunrun

Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com

Non-GAAP Information

This press release includes references to certain non-GAAP financial measures, such as non-GAAP net (loss) income and non-GAAP net (loss) income per share. We believe that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, can provide meaningful supplemental information for investors regarding the performance of our business and facilitate a meaningful evaluation of current period performance on a comparable basis with prior periods. Our management uses these non-GAAP financial measures in order to have comparable financial results to analyze changes in our underlying business from quarter to quarter. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for or superior to the GAAP financial measures presented in this press release and our financial statements and other publicly filed reports. Non-GAAP measures as presented herein may not be comparable to similarly titled measures used by other companies.

Non-GAAP net (loss) income is defined as GAAP net (loss) income adjusted by the non-cash goodwill impairment charge, non-cash adjustment to equity investments, and the debt discount amortization. Management believes the exclusion of this non-cash and non-recurring item provides useful supplemental information to investors and facilitates the analysis of its operating results and comparison of operating results across reporting periods.

Forward Looking Statements

This communication contains forward-looking statements related to Sunrun (the “Company”) within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements related to: the Company’s financial and operating guidance and expectations; the Company’s business plan, trajectory, expectations, market leadership, competitive advantages, operational and financial results and metrics (and the assumptions related to the calculation of such metrics); the Company’s momentum in its business strategies including expectations regarding market share, total addressable market, growth in certain geographies, customer value proposition, market penetration, growth of certain divisions, financing activities, financing capacity, product mix, and ability to manage cash flow and liquidity; the growth of the solar industry; the Company’s financing activities and expectations to refinance, amend, and/or extend any financing facilities; trends or potential trends within the solar industry, our business, customer base, and market; the Company’s ability to derive value from the anticipated benefits of partnerships, new technologies, and pilot programs, including contract renewal and repowering programs; anticipated demand, market acceptance, and market adoption of the Company’s offerings, including new products, services, and technologies; the Company’s strategy to be a margin-focused, multi-product, customer-oriented company; the ability to increase margins based on a shift in product focus; expectations regarding the growth of home electrification, electric vehicles, virtual power plants, and distributed energy resources; the Company’s ability to manage suppliers, inventory, and workforce; supply chains and regulatory impacts affecting supply chains; the Company’s leadership team and talent development; the legislative and regulatory environment of the solar industry and the potential impacts of proposed, amended, and newly adopted legislation and regulation on the solar industry and our business; the ongoing expectations regarding the Company’s storage and energy services businesses and anticipated emissions reductions due to utilization of the Company’s solar energy systems; and factors outside of the Company’s control such as macroeconomic trends, bank failures, public health emergencies, natural disasters, acts of war, terrorism, geopolitical conflict, or armed conflict / invasion, and the impacts of climate change. These statements are not guarantees of future performance; they reflect the Company’s current views with respect to future events and are based on assumptions and estimates and are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from expectations or results projected or implied by forward-looking statements. The risks and uncertainties that could cause the Company’s results to differ materially from those expressed or implied by such forward-looking statements include: the Company’s continued ability to manage costs and compete effectively; the availability of additional financing on acceptable terms; worldwide economic conditions, including slow or negative growth rates and inflation; volatile or rising interest rates; changes in policies and regulations, including net metering, interconnection limits, and fixed fees, or caps and licensing restrictions and the impact of these changes on the solar industry and our business; the Company’s ability to attract and retain the Company’s business partners; supply chain risks and associated costs; realizing the anticipated benefits of past or future investments, partnerships, strategic transactions, or acquisitions, and integrating those acquisitions; the Company’s leadership team and ability to attract and retain key employees; changes in the retail prices of traditional utility generated electricity; the availability of rebates, tax credits and other incentives; the availability of solar panels, batteries, and other components and raw materials; the Company’s business plan and the Company’s ability to effectively manage the Company’s growth and labor constraints; the Company’s ability to meet the covenants in the Company’s investment funds and debt facilities; factors impacting the home electrification and solar industry generally, and such other risks and uncertainties identified in the reports that we file with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements used herein are based on information available to us as of the date hereof, and we assume no obligation to update publicly these forward-looking statements for any reason, except as required by law.

Citations to industry and market statistics used herein may be found in our Investor Presentation, available via the “Investor Relations” section of Sunrun’s website at https://investors.sunrun.com.

Consolidated Balance Sheets (In Thousands)
	As of December 31,
		2024		2023
Assets
Current assets:
Cash	$	574,956	$	678,821
Restricted cash		372,312		308,869
Accounts receivable, net		170,706		172,001
Inventories		402,083		459,746
Prepaid expenses and other current assets		202,579		262,822
Total current assets		1,722,636		1,882,259
Restricted cash		148		148
Solar energy systems, net		15,032,115		13,028,871
Property and equipment, net		121,239		149,139
Goodwill		—		3,122,168
Other assets		3,021,746		2,267,652
Total assets	$	19,897,884	$	20,450,237
Liabilities and total equity
Current liabilities:
Accounts payable	$	354,214	$	230,723
Distributions payable to noncontrolling interests and redeemable noncontrolling interests		41,464		35,180
Accrued expenses and other liabilities		543,752		499,225
Deferred revenue, current portion		129,442		128,600
Deferred grants, current portion		7,900		8,199
Finance lease obligations, current portion		26,045		22,053
Non-recourse debt, current portion		231,665		547,870
Pass-through financing obligation, current portion		—		16,309
Total current liabilities		1,334,482		1,488,159
Deferred revenue, net of current portion		1,208,905		1,067,461
Deferred grants, net of current portion		196,535		195,724
Finance lease obligations, net of current portion		66,139		68,753
Line of credit		384,226		539,502
Non-recourse debt, net of current portion		11,806,181		9,191,689
Convertible senior notes		479,420		392,867
Pass-through financing obligation, net of current portion		—		278,333
Other liabilities		119,846		190,866
Deferred tax liabilities		137,940		122,870
Total liabilities		15,733,674		13,536,224
Redeemable noncontrolling interests		624,159		676,177
Total stockholders’ equity		2,554,207		5,230,228
Noncontrolling interests		985,844		1,007,608
Total equity		3,540,051		6,237,836
Total liabilities, redeemable noncontrolling interests and total equity	$	19,897,884	$	20,450,237

Consolidated Statements of Operations (In Thousands, Except Per Share Amounts)
	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenue:
Customer agreements and incentives	$	388,574		$	321,555		$	1,505,227		$	1,186,706
Solar energy systems and product sales		129,918			195,035			532,492			1,073,107
Total revenue		518,492			516,590			2,037,719			2,259,813
Operating expenses:
Cost of customer agreements and incentives		292,632			287,780			1,169,213			1,077,114
Cost of solar energy systems and product sales		128,361			194,808			539,952			1,019,638
Sales and marketing		150,751			166,760			617,162			740,821
Research and development		8,794			7,663			39,304			21,816
General and administrative		72,045			57,110			245,127			221,067
Goodwill Impairment		3,122,168			—			3,122,168			1,158,000
Total operating expenses		3,774,751			714,121			5,732,926			4,238,456
Loss from operations		(3,256,259	)		(197,531	)		(3,695,207	)		(1,978,643	)
Interest expense, net		(233,385	)		(181,826	)		(848,366	)		(652,989	)
Other income (expense), net		89,829			(157,644	)		161,539			(63,900	)
Loss before income taxes		(3,399,815	)		(537,001	)		(4,382,034	)		(2,695,532	)
Income tax benefit		136			(1,595	)		(26,817	)		(12,691	)
Net loss		(3,399,951	)		(535,406	)		(4,355,217	)		(2,682,841	)
Net loss attributable to noncontrolling interests and redeemable noncontrolling interests		(586,294	)		(185,282	)		(1,509,050	)		(1,078,344	)
Net loss attributable to common stockholders	$	(2,813,657	)	$	(350,124	)	$	(2,846,167	)	$	(1,604,497	)
Net loss per share attributable to common stockholders
Basic	$	(12.51	)	$	(1.60	)	$	(12.81	)	$	(7.41	)
Diluted	$	(12.51	)	$	(1.60	)	$	(12.81	)	$	(7.41	)
Weighted average shares used to compute net loss per share attributable to common stockholders
Basic		224,896			218,461			222,215			216,642
Diluted		224,896			218,461			222,215			216,642

Consolidated Statements of Cash Flows (In Thousands)
	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Operating activities:
Net loss	$	(3,399,951	)	$	(535,406	)	$	(4,355,217	)	$	(2,682,841	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization, net of amortization of deferred grants		162,343			143,024			620,876			531,669
Goodwill impairment		3,122,168			—			3,122,168			1,158,000
Deferred income taxes		136			(1,623	)		(26,817	)		(12,716	)
Stock-based compensation expense		28,869			27,555			112,825			111,781
Interest on pass-through financing obligations		—			4,862			8,837			19,504
Reduction in pass-through financing obligations		—			(9,820	)		(20,787	)		(40,352	)
Unrealized (gain) loss on derivatives		(122,319	)		108,226			(120,008	)		28,105
Other noncash items		105,220			118,956			210,479			261,390
Changes in operating assets and liabilities:
Accounts receivable		5,741			5,762			(14,974	)		15,748
Inventories		(59,735	)		202,055			57,663			324,158
Prepaid expenses and other current assets		(301,380	)		(142,438	)		(771,997	)		(476,628	)
Accounts payable		141,070			(52,514	)		177,449			(108,785	)
Accrued expenses and other liabilities		4,182			(31,986	)		80,588			(56,473	)
Deferred revenue		55,297			47,340			152,762			106,700
Net cash used in operating activities		(258,359	)		(116,007	)		(766,153	)		(820,740	)
Investing activities:
Payments for the costs of solar energy systems		(791,785	)		(651,462	)		(2,699,452	)		(2,587,183	)
Purchase of equity investment		—			(5,000	)		—			(5,000	)
Purchases of property and equipment, net		(627	)		(4,662	)		(1,572	)		(20,960	)
Net cash provided by (used in) investing activities		(792,412	)		(661,124	)		(2,701,024	)		(2,613,143	)
Financing activities:
Proceeds from state tax credits, net of recapture		—			—			5,203			4,033
Proceeds from trade receivable financing		124,261			41,225			124,261			41,225
Repayment of trade receivable financing		—			(41,225	)		—			(41,225	)
Proceeds from line of credit		48,700			473,277			354,256			1,124,675
Repayment of line of credit		(56,998	)		(451,023	)		(509,532	)		(1,090,331	)
Proceeds from issuance of convertible senior notes, net of capped call transaction		—			—			444,822			—
Repurchase of convertible senior notes		(117,235	)		(1,545	)		(346,581	)		(1,545	)
Proceeds from issuance of non-recourse debt		644,950			556,100			4,009,906			3,745,580
Repayment of non-recourse debt		(102,748	)		(175,728	)		(1,794,962	)		(1,575,527	)
Payment of debt fees		(128	)		(412	)		(93,875	)		(47,342	)
Proceeds from pass-through financing and other obligations, net		—			2,100			4,795			8,812
Repayment of pass-through financing obligation		—			—			(240,288	)		—
Payment of finance lease obligations		(6,605	)		(6,484	)		(27,240	)		(23,279	)
Contributions received from noncontrolling interests and redeemable noncontrolling interests		521,480			459,858			1,811,966			1,572,399
Distributions paid to noncontrolling interests and redeemable noncontrolling interests		(70,269	)		(51,578	)		(308,657	)		(225,114	)
Acquisition of noncontrolling interest		(4,761	)		—			(26,195	)		(46,274	)
Proceeds from transfer of investment tax credits		148,586			6,980			705,697			6,980
Payments to redeemable noncontrolling interests and noncontrolling interests of investment tax credits		(148,586	)		(6,980	)		(705,697	)		(6,980	)
Net proceeds related to stock-based award activities		6,923			8,459			18,876			22,611
Net cash provided by financing activities		987,570			813,024			3,426,755			3,468,698
Net change in cash and restricted cash		(63,201	)		35,893			(40,422	)		34,815
Cash and restricted cash, beginning of period		1,010,617			951,945			987,838			953,023
Cash and restricted cash, end of period	$	947,416		$	987,838		$	947,416		$	987,838

Reconciliation between GAAP and Non-GAAP diluted (loss) income per share:
	Three Months Ended December 31, 2024						Year Ended December 31, 2024
	Net (Loss) Income			Diluted EPS			Net (Loss) Income			Diluted EPS
GAAP diluted loss per share	$	(2,813,657	)	$	(12.51	)	$	(2,846,167	)	$	(12.81	)
Debt Discount Amortization		1,131			0.01			6,438			0.03
Non-cash impairment charges ⁽²⁾		3,173,450			14.11			3,173,450			14.28
Non-GAAP diluted income per share ⁽¹⁾	$	360,924		$	1.41		$	333,721		$	1.33

GAAP weighted average shares for diluted EPS		224,896						222,215
Non-GAAP weighted average shares for diluted EPS		256,614						250,622

(1) Non-GAAP diluted income per share excludes the effects of the pro forma adjustment detailed above. Non- GAAP diluted income per share is adjusted to exclude this item, as it is not used by management to evaluate the performance of the business.
(2) Excluding this item of non-recurring, infrequent or unusual nature and its impact on the comparability of our results for the period to prior periods and future expected trends.

Key Operating and Financial Metrics

The following operating metrics are used by management to evaluate the performance of the business. Management believes these metrics, when taken together with other information contained in our filings with the SEC and within this press release, provide investors with helpful information to determine the economic performance of the business activities in a period that would otherwise not be observable from historic GAAP measures. Management believes that it is helpful to investors to evaluate the present value of cash flows expected from subscribers over the full expected relationship with such subscribers (“Subscriber Value”, more fully defined in the definitions appendix below) in comparison to the costs associated with adding these customers, regardless of whether or not the costs are expensed or capitalized in the period (“Creation Cost”, more fully defined in the definitions appendix below). The Company also believes that Subscriber Value, Creation Costs, and Total Value Generated are useful metrics for investors because they present an unlevered view of all of the costs associated with new customers in a period compared to the expected future cash flows from these customers over a 30-year period, based on contracted pricing terms with its customers, which is not observable in any current or historic GAAP-derived metric. Management believes it is useful for investors to also evaluate the future expected cash flows from all customers that have been deployed through the respective measurement date, less estimated costs to maintain such systems and estimated distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors (“Gross Earning Assets”, more fully defined in the definitions appendix below). The Company also believes Gross Earning Assets is useful for management and investors because it represents the remaining future expected cash flows from existing customers, which is not a current or historic GAAP-derived measure.

Various assumptions are made when calculating these metrics. Both Subscriber Value and Gross Earning Assets utilize a 6% rate to discount future cash flows to the present period. Furthermore, these metrics assume that customers renew after the initial contract period at a rate equal to 90% of the rate in effect at the end of the initial contract term. For Customer Agreements with 25-year initial contract terms, a 5-year renewal period is assumed. For a 20-year initial contract term, a 10-year renewal period is assumed. In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system. Estimated cost of servicing assets has been deducted and is estimated based on the service agreements underlying each fund.

*In-period volume metrics:*	Three Months Ended December 31, 2024
Customer Additions		32,932
Subscriber Additions (included within Customer Additions)		30,709
Solar Energy Capacity Installed (in Megawatts)		242.4
Solar Energy Capacity Installed for Subscribers (in Megawatts)		232.0
Storage Capacity Installed (in Megawatt hours)		392.0

*In-period value creation metrics:*	Three Months Ended December 31, 2024
Subscriber Value Contracted Period	$52,035
Subscriber Value Renewal Period	$3,776
Subscriber Value	$55,811
Creation Cost	$36,634
Net Subscriber Value	$19,177
Total Value Generated (in millions)	$588.9

*In-period environmental impact metrics:*	Three Months Ended December 31, 2024
Positive Environmental Impact from Customers (over trailing twelve months, in millions of metric tons of CO2 avoidance)		4.0
Positive Expected Lifetime Environmental Impact from Customer Additions (in millions of metric tons of CO2 avoidance)		4.8

*Period-end metrics:*	December 31, 2024
Customers		1,048,842
Subscribers (subset of Customers)		889,186
Households Served in Low-Income Multifamily Properties		21,129
Networked Solar Energy Capacity (in Megawatts)		7,531
Networked Solar Energy Capacity for Subscribers (in Megawatts)		6,436
Networked Storage Capacity (in Megawatt hours)		2,525
Annual Recurring Revenue (in millions)	$1,644
Average Contract Life Remaining (in years)		17.6
Gross Earning Assets Contracted Period (in millions)	$13,791
Gross Earning Assets Renewal Period (in millions)	$4,043
Gross Earning Assets (in millions)	$17,834
Net Earning Assets (in millions)	$6,766

Figures presented above may not sum due to rounding. For adjustments related to Subscriber Value and Creation Cost, please see the supplemental Creation Cost and Net Subscriber Value calculation memo for each applicable period, which is available on investors.sunrun.com.

Definitions

Deployments represent solar or storage systems, whether sold directly to customers or subject to executed Customer Agreements (i) for which we have confirmation that the systems are installed, subject to final inspection, or (ii) in the case of certain system installations by our partners, for which we have accrued at least 80% of the expected project cost (inclusive of acquisitions of installed systems).

Customer Agreements refer to, collectively, solar or storage power purchase agreements and leases.

Subscriber Additions represent the number of Deployments in the period that are subject to executed Customer Agreements.

Customer Additions represent the number of Deployments in the period.

Solar Energy Capacity Installed represents the aggregate megawatt production capacity of our solar energy systems that were recognized as Deployments in the period.

Solar Energy Capacity Installed for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that were recognized as Deployments in the period that are subject to executed Customer Agreements.

Storage Capacity Installed represents the aggregate megawatt hour capacity of storage systems that were recognized as Deployments in the period.

Creation Cost represents the sum of certain operating expenses and capital expenditures incurred divided by applicable Customer Additions and Subscriber Additions in the period. Creation Cost is comprised of (i) installation costs, which includes the increase in gross solar energy system assets and the cost of customer agreement revenue, excluding depreciation expense of fixed solar assets, and operating and maintenance expenses associated with existing Subscribers, plus (ii) sales and marketing costs, including increases to the gross capitalized costs to obtain contracts, net of the amortization expense of the costs to obtain contracts, plus (iii) general and administrative costs, and less (iv) the gross profit derived from selling systems to customers under sale agreements and Sunrun’s product distribution and lead generation businesses. Creation Cost excludes stock based compensation, amortization of intangibles, and research and development expenses, along with other items the company deems to be non-recurring or extraordinary in nature. The gross margin derived from solar energy systems and product sales is included as an offset to Creation Cost since these sales are ancillary to the overall business model and lowers our overall cost of business. The sales, marketing, general and administrative costs in Creation Costs is inclusive of sales, marketing, general and administrative activities related to the entire business, including solar energy system and product sales. As such, by including the gross margin on solar energy system and product sales as a contra cost, the value of all activities of the Company’s segment are represented in the Net Subscriber Value.

Subscriber Value represents the per subscriber value of upfront and future cash flows (discounted at 6%) from Subscriber Additions in the period, including expected payments from customers as set forth in Customer Agreements, net proceeds from tax equity finance partners, payments from utility incentive and state rebate programs, contracted net grid service program cash flows, projected future cash flows from solar energy renewable energy credit sales, less estimated operating and maintenance costs to service the systems and replace equipment, consistent with estimates by independent engineers, over the initial term of the Customer Agreements and estimated renewal period. For Customer Agreements with 25 year initial contract terms, a 5 year renewal period is assumed. For a 20 year initial contract term, a 10 year renewal period is assumed. In all instances, we assume a 30-year customer relationship, although the customer may renew for additional years, or purchase the system.

Net Subscriber Value represents Subscriber Value less Creation Cost.

Total Value Generated represents Net Subscriber Value multiplied by Subscriber Additions.

Customers represent the cumulative number of Deployments, from the company’s inception through the measurement date.

Subscribers represent the cumulative number of Customer Agreements for systems that have been recognized as Deployments through the measurement date.

Networked Solar Energy Capacity represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date.

Networked Solar Energy Capacity for Subscribers represents the aggregate megawatt production capacity of our solar energy systems that have been recognized as Deployments, from the company’s inception through the measurement date, that have been subject to executed Customer Agreements.

Networked Storage Capacity represents the aggregate megawatt hour capacity of our storage systems that have been recognized as Deployments, from the company’s inception through the measurement date.

Gross Earning Assets is calculated as Gross Earning Assets Contracted Period plus Gross Earning Assets Renewal Period.

Gross Earning Assets Contracted Period represents the present value of the remaining net cash flows (discounted at 6%) during the initial term of our Customer Agreements as of the measurement date. It is calculated as the present value of cash flows (discounted at 6%) that we would receive from Subscribers in future periods as set forth in Customer Agreements, after deducting expected operating and maintenance costs, equipment replacements costs, distributions to tax equity partners in consolidated joint venture partnership flip structures, and distributions to project equity investors. We include cash flows we expect to receive in future periods from tax equity partners, government incentive and rebate programs, contracted sales of solar renewable energy credits, and awarded net cash flows from grid service programs with utilities or grid operators.

Gross Earning Assets Renewal Period is the forecasted net present value we would receive upon or following the expiration of the initial Customer Agreement term but before the 30th anniversary of the system’s activation (either in the form of cash payments during any applicable renewal period or a system purchase at the end of the initial term), for Subscribers as of the measurement date. We calculate the Gross Earning Assets Renewal Period amount at the expiration of the initial contract term assuming either a system purchase or a renewal, forecasting only a 30-year customer relationship (although the customer may renew for additional years, or purchase the system), at a contract rate equal to 90% of the customer’s contractual rate in effect at the end of the initial contract term. After the initial contract term, our Customer Agreements typically automatically renew on an annual basis and the rate is initially set at up to a 10% discount to then-prevailing utility power prices.

Net Earning Assets represents Gross Earning Assets, plus total cash, less adjusted debt and less pass-through financing obligations, as of the same measurement date. Debt is adjusted to exclude a pro-rata share of non-recourse debt associated with funds with project equity structures along with debt associated with the company’s ITC safe harboring facility. Because estimated cash distributions to our project equity partners are deducted from Gross Earning Assets, a proportional share of the corresponding project level non-recourse debt is deducted from Net Earning Assets, as such debt would be serviced from cash flows already excluded from Gross Earning Assets.

Cash Generation is calculated using the change in our unrestricted cash balance from our consolidated balance sheet, less net proceeds (or plus net repayments) from all recourse debt (inclusive of convertible debt), and less any primary equity issuances or net proceeds derived from employee stock award activity (or plus any stock buybacks or dividends paid to common stockholders) as presented on the Company’s consolidated statement of cash flows. The Company expects to continue to raise tax equity and asset-level non-recourse debt to fund growth, and as such, these sources of cash are included in the definition of Cash Generation. Cash Generation also excludes long-term asset or business divestitures and equity investments in external non-consolidated businesses (or less dividends or distributions received in connection with such equity investments). Restricted cash in a reserve account with a balance equal to the amount outstanding of 2026 convertible notes is considered unrestricted cash for the purposes of calculating Cash Generation.

Annual Recurring Revenue represents revenue arising from Customer Agreements over the following twelve months for Subscribers that have met initial revenue recognition criteria as of the measurement date.

Average Contract Life Remaining represents the average number of years remaining in the initial term of Customer Agreements for Subscribers that have met revenue recognition criteria as of the measurement date.

Households Served in Low-Income Multifamily Properties represent the number of individual rental units served in low-income multi-family properties from shared solar energy systems deployed by Sunrun. Households are counted when the solar energy system has interconnected with the grid, which may differ from Deployment recognition criteria.

Positive Environmental Impact from Customers represents the estimated reduction in carbon emissions as a result of energy produced from our Networked Solar Energy Capacity over the trailing twelve months. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.

Positive Expected Lifetime Environmental Impact from Customer Additions represents the estimated reduction in carbon emissions over thirty years as a result of energy produced from solar energy systems that were recognized as Deployments in the period. The figure is presented in millions of metric tons of avoided carbon emissions and is calculated using the Environmental Protection Agency’s AVERT tool. The figure is calculated using the most recent published tool from the EPA, using the current-year avoided emission factor for distributed resources on a state by state basis, leveraging our estimated production figures for such systems, which degrade over time, and is extrapolated for 30 years. The environmental impact is estimated based on the system, regardless of whether or not Sunrun continues to own the system or any associated renewable energy credits.

Total Cash represents the total of the restricted cash balance and unrestricted cash balance from our consolidated balance sheet.

Investor & Analyst Contact:

Patrick Jobin
SVP, Deputy CFO & Investor Relations Officer
investors@sunrun.com

Media Contact:

Wyatt Semanek
Director, Corporate Communications
press@sunrun.com

MIL-OSI: dLocal Reports 2024 Fourth Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

Full Year 2024 results
US$25.6 billion Total Payment Volume, up 45% year-over-year
Revenue of US$746 million, up 15% year-over-year
113% Net Revenue Retention Rate
Gross Profit of US$295 million, up 6% year-over-year
Adjusted EBITDA of US$189 million, down 7% year-over-year

Fourth Quarter 2024
US$7.7 billion Total Payment Volume, up 51% year-over-year and 18% quarter-over-quarter
Revenue of US$204 million, up 9% year-over-year and 10% quarter-over-quarter
106% Net Revenue Retention Rate
Gross Profit of US$84 million, up 20% year-over-year and 7% quarter-over-quarter
Adjusted EBITDA of US$57 million, up 16% year-over-year and 9% quarter-over-quarter

Record TPV of $26 billion, a strong growth to 45% YoY with mix continuing to move to newer more attractive markets, while core markets rebounded from Q3 softness;

Revenue and gross profits hitting record highs of $746 million and $295 million, respectively;

Adjusted EBITDA to GP margins closing out the year at 64%, but improving consistently as the year progressed.

dLocal reports in US dollars and in accordance with IFRS as issued by the IASB

MONTEVIDEO, Uruguay, Feb. 27, 2025 (GLOBE NEWSWIRE) — DLocal Limited (“dLocal”, “we”, “us”, and “our”) (NASDAQ:DLO), a technology – first payments platform today announced its financial results for the fourth quarter ended December 31, 2024..

As we walk through a review of our performance over the past quarter and year, and as we have repeatedly mentioned, we think of five pillars underpinning dLocal’s investment thesis:

A massive addressable market, given the untapped potential of emerging and frontier markets as they digitize payments and merchants go to market throughout the Global South. 85% of the world’s population resides in emerging markets¹, and two thirds of global growth by 2035 will come from there².
Consistent high top line growth, driven by a proven track record of delivering value to the world’s most sophisticated global digital merchants that has allowed us to capture a market leading share of this expanding TAM.
Attractive margin business with potential to deliver operational leverage once we have laid the foundational blocks and further scale benefits kick in.
Strong cash generating financial model as Net Income converts well into FCF.
Investment in product development capabilities to drive growth through new categories, products, feature innovations, and potential M&A activity.

Our FY 2024 results affirm the investment thesis, highlighted by a record TPV of $26 billion, a strong TPV growth of 45% year-over-year, driven by a shift towards newer, more attractive markets, while core markets rebounded from Q3 softness. Additionally, revenue and gross profits reached record highs of $746 million and $295 million, respectively, with an adjusted EBITDA to GP margins closing the year at 64%, showing consistent improvement throughout the year. Furthermore, Net Income to FCF of Own funds³ conversion exited the year at a rate above 100%.

These strong 2024 results should be seen in the context of a weak first quarter followed by progressively stronger quarter-over-quarter performance, and the continuation of an investment cycle aimed at achieving greater scalability for our business.

Building on last quarter’s positive trend, our TPV grew over 50% year-over-year, despite a strong Q4 2023 comparison. Quarter-over-quarter, TPV growth accelerated to nearly 20%, driven by commerce seasonality, and strength in remittances and ride-hailing. In constant currency³, given general weakness in Emerging Markets currencies, those growth rates are even more impressive, about 30 points higher year-over-year.

Revenues surpassed the milestone of over $200 million in Q4, representing a 9% year-over-year growth. In constant currencies⁴, revenue growth for the period would have been around 40% year-over-year.

Our growth continues to reinforce our position as a trusted partner for global companies seeking to do business across emerging markets, with performance coming from a well diversified list of countries, with notable contributions from Argentina, Egypt, Other LatAm and Other Africa and Asia markets. As a result of our expansion into more frontier markets, we also continue to see solid growth in our cross-border volumes.

In terms of profitability, we reached a record gross profit of $84 million, with a net take rate at 1.1%, reflecting the market dynamic where higher volumes drive lower take rates, increase in the payouts share, and the depreciation of emerging market currencies. To offset this, we are driving cost efficiencies through processor and broker renegotiations and improvements in our hedging strategy. We also continue our push into higher take rate markets and verticals, which over the long term, should partially offset the take rate compression.

Despite the ongoing step up in investments in our engineering team, operational capabilities, and license portfolio to support our long-term growth ambitions, our Adjusted EBITDA hit a record $57 million in the quarter, with an adjusted EBITDA over gross profit margin improving quarter-over-quarter to 68%.

Cash generation was also solid, as we continue to increase free cash available to deploy behind our capital allocation strategy. This sustained cash generation increases our flexibility when thinking through M&A, buybacks or re-investing in a disciplined manner back into the business.

In 2024, we added 9 licenses and registrations, including the UK FCA’s Authorised Payment Institution license, which enhances our competitive edge and demonstrates our commitment to compliant practices and regulatory oversight.

To sum up, Q4 marked the successful end to 2024 in terms of consistent TPV growth, controlled take rate decline, and balance of investment for future growth with a healthy margin and free cash profile.

Looking ahead to our 2025 guidance⁵, we expect a strong TPV growth of 35% – 45% year-over-year, with a revenue growth of 25% – 35% year-over-year that shows this sustained momentum of our top line. We see gross profit growth of 20% – 25% year-over-year, and Adjusted EBITDA growth between 20% and 30% year-over-year.

Considering those assumptions, we should expect a net take rate compression while delivering high TPV growth even at our scale. Over the midterm, we will work to maintain strong TPV while recognizing that given the extremely strong levels of TPV retention we deliver, our larger merchants will continue to attain lower pricing tiers. We will strive to offset this effect through growth in higher take rate new verticals, natural mix shift towards higher take rate frontier markets, and new revenue streams through product launches.

This guidance highlights that our combination of revenue growth, margin structure and free cash generation is not that common. There are not that many companies today who are as profitable as we are, growing revenues at the pace we are growing, and consistently generating free cash.

As known, our business thrives in fast-growing, dynamic markets with massive opportunities in digital payments across emerging markets, driven by strong demand and long-term growth trends. However, these markets also bring volatility from macroeconomic shifts, regulatory changes, and currency fluctuations. While we are confident in our long-term high-growth potential, providing mid-term guidance may not accurately reflect the predictability over a multi-year timeframe. For this reason, we have made the decision to discontinue mid-term guidance. We will continue to focus on delivering strong operational execution so as to hit the annual targets we disclose.

Looking ahead to 2025, we are confident in our ability to sustain momentum. Our investments in technology, product innovation, and market expansion position us well for growth. Despite the volatility of emerging markets, our disciplined scaling, local expertise, and commitment to delivering value to merchants will differentiate us. Our strategy focuses on capturing the potential of digital payments in high-growth regions, driving operational efficiencies, and reinforcing market leadership. We are excited about the opportunities ahead and committed to executing with the same rigor and discipline that have defined our success.

¹ Source: Euromonitor International: Reaching the emerging middle class beyond BRIC; ² Source: S&P Global Market Intelligence. ³ Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation; ⁴ Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation; ⁵ please see Full year 2025 outlook on slide 23 of Q4 2024 Earnings Presentation.

Fourth quarter 2024 financial highlights

Total Payment Volume (“TPV”) reached a record US$7.7 billion in the fourth quarter, up 51% year-over-year compared to US$5.1 billion in the fourth quarter of 2023 and up 18% compared to US$6.5 billion in the third quarter of 2024. In constant currencies¹, TPV growth for the period would have been 81% year-over-year.

Revenues amounted to US$204.5 million, up 9% year-over-year compared to US$188.0 million in the fourth quarter of 2023 and up 10% compared to US$185.8 million in the third quarter of 2024. This quarter-over-quarter increase was mostly driven by volume increase in Egypt, as well as positive results in Other LatAm and Other Africa and Asia, with notable performance in South Africa, Turkey, Colombia and Ecuador. In constant currencies1, revenue growth for the period would have been 42% year-over-year.

Gross profit was US$83.7 million in the fourth quarter of 2024, up 20% compared to US$69.7 million in the fourth quarter of 2023 and up 7% compared to US$78.2 million in the third quarter of 2024. The improvement in gross profit quarter-over-quarter was primarily due to volume growth in Argentina, Egypt, Nigeria and Turkey. These positive factors were partially offset by (i) Mexico, given the higher growth of Tier 0 merchants coupled with a shift in the payment mix; (ii) Brazil, given the lower take rates from the new Payment Orchestration option launched in the third quarter of 2024 (which positively allowed for volume recovery versus the prior quarter) and shift in the payment mix; and (iii) Other LatAm markets, that despite delivering positive volume performance, on a quarter-over-quarter comparison was impacted by the strong growth in Q3 from wider FX spreads in certain smaller markets, as disclosed in the previous quarterly results.

As a result, gross profit margin was 41% in this quarter, compared to 37% in the fourth quarter of 2023 and 42% in the third quarter of 2024.

Gross profit over TPV was at 1.1% decreasing from 1.4% in the fourth quarter of 2023 and from 1.2% compared to the third quarter of 2024.

Operating income was US$42.3 million, up 3% compared to US$41.0 million in the fourth quarter of 2023 and up 3% compared to US$41.1 million in the third quarter of 2024, as we resumed the pace of certain investments in building out our capabilities. In this context, operating expenses grew by 44% year-over-year, with most of the growth allocated to Product Development & IT capabilities, with these expenses increasing by 70% year-over-year while combined Sales and Marketing (S&M) and G&A expenses grew by 29%. On the sequential comparison, operating expenses increased 12% quarter-over-quarter, a reflection of (i) growth in combined S&M and G&A expenses, driven by continued investment in operating capabilities and marketing investments; and (ii) slightly down tech and development expenses as increases in headcount were offset by reductions in other IT expenditures.

As a result, Adjusted EBITDA was US$56.9 million, up 16% compared to US$49.2 million in the fourth quarter of 2023 and up 9% compared to US$52.4 million in the third quarter of 2024.

Adjusted EBITDA margin was 28%, compared to the 26% recorded in the fourth quarter of 2023 and 28% in the third quarter of 2024. On the annual comparison, the increase is explained by investments in core areas to drive efficiency and ensure future growth while maintaining our lean and disciplined structure. Adjusted EBITDA over gross profit of 68% decreased compared to 71% in the fourth quarter of 2023 and increased compared to 67% in the third quarter of 2024.

Net financial cost was US$1.1 million, compared to a finance income of US$1.0 million in the fourth quarter of 2023 and a cost of US$10.1 million in the third quarter of 2024, as explained in the Net Income section.

Our effective income tax rate increased to 27% from 8% last quarter, and stands at 20% on a year-to-date basis. In the fourth quarter of 2024, effective income tax rate was impacted by an income tax settlement related to previous periods. Excluding this tax settlement, our effective income tax rate stood at 16% for the fourth quarter and 17% for the year compared to 16% in 2023, as a result of slightly higher local-to-local share of pre-tax income.

Net income for the fourth quarter of 2024 was US$29.7 million, or US$0.10 per diluted share, up 4% compared to a profit of US$28.5 million, or US$0.10 per diluted share, for the fourth quarter of 2023 and up 11% compared to a profit of US$26.8 million, or US$0.09 per diluted share for the third quarter of 2024. During the current period, net income was mostly affected by the positive non-cash mark to market effect related to our Argentine bond investments, lower finance costs partially offset by higher taxes. Adjusted net income for the fourth quarter of 2024 was US$45.8 million, up 13% compared to US$40.6 million for the fourth quarter of 2023 and up 6% compared to US$43.4 million for the third quarter of 2024.

As of December 31, 2024, dLocal had US$425.2 million in cash and cash equivalents, including US$189.0 million of own funds and US$236.1 million of merchants’ funds. The consolidated cash position decreased by US$111.0 million from US$536.2 million as of December 31, 2023. When compared to the US$560.5 million cash position as of September 30, 2024, it decreased by US$135.4 million. The variation quarter-over-quarter is primarily explained by changes in merchant working capital, driven by: (i) increase in trade receivables due to temporary settlement delays before year-end; coupled with (ii) decrease in trade payables due to a shift in settlement periods with certain merchants and higher settlement of accumulated merchant balances.

¹Please see Reconciliation of TPV and Revenue constant currency measures to reported results of Q4 2024 Earnings Presentation.

The following table summarizes our key performance metrics:

	Three months ended December 31			Twelve months ended December 31
	2024	2023	% change	2024	2023	% change
Key Performance metrics	(In millions of US$ except for %)
TPV	7,714	5,111	51%	25,575	17,677	45%
Revenue	204.5	188.0	9%	746.0	650.4	15%
Gross Profit	83.7	69.7	20%	294.7	276.9	6%
Gross Profit margin	41%	37%	4p.p	40%	43%	-3p.p
Adjusted EBITDA	56.9	49.2	16%	188.7	202.3	-7%
Adjusted EBITDA margin	28%	26%	2p.p	25%	31%	-6p.p
Adjusted EBITDA/Gross Profit	68%	71%	-3p.p	64%	73%	-9p.p
Profit	29.7	28.5	4%	120.5	149.1	-19%
Profit margin	15%	15%	-1p.p	16%	23%	-7p.p

Fourth quarter 2024 business highlights

During the fourth quarter of 2024, pay-ins TPV increased 44% year-over-year and 15% quarter-over-quarter to US$5.3 billion, accounting for 69% of the TPV.

Pay-outs TPV increased by 68% year-over-year and 26% quarter-over-quarter to US$2.4 billion, accounting for the remaining 31% of the TPV.

Cross-border TPV increased by 67% year-over-year and 23% quarter-over-quarter to US$3.7 billion. Cross-border volume accounted for 48% of the TPV in the fourth quarter of 2024.

Local-to-local TPV increased by 38% year-over-year and 14% quarter-over-quarter to US$4.0 billion. Local-to-local volume accounted for 52% of the TPV in the fourth quarter of 2024.

LatAm revenue increased 16% year-over-year to US$152.9 million, accounting for 75% of total revenue. On the annual comparison, the growth was primarily driven by (i) volume growth in Argentina; and (ii) strong performance of Other LatAm, particularly in Colombia. This result was partially offset by Brazil due to (i) lower take rates from the new Payment Orchestration option launched in the third quarter of 2024; and (ii) shift in the payment mix. Sequentially, LatAm revenue grew by 5%, mainly driven by the performance of Other LatAm, especially in Colombia and Ecuador. The positive result was offset by (i) Argentina, impacted by the lower FX spreads; (ii) Brazil, as previously explained; and (iii) Mexico, due to higher growth of Tier 0 merchants coupled with a shift in the payment mix.

In the Africa and Asia region, revenue decreased by 9% year-over-year, primarily driven by Nigeria due to the Naira devaluation in February of 2024; partially offset by (i) the strong growth performance in Egypt; and (ii) in Other Africa and Asia, particularly the performance in South Africa in the commerce vertical. Those regions are also the main drivers of the sequential increase.

LatAm gross profit increased by 3% year-over-year and 1% quarter-over-quarter to US$56.4 million, accounting for 67% of total gross profit. Most of the year-over-year increase is explained by the volume growth in Argentina, Mexico, and other LatAm markets, which were mostly offset by Brazil as just explained, and currency devaluations. Sequentially, the growth was mainly driven by Argentina’s positive performance; offset by drivers in Mexico and Brazil, as explained previously. Other Latam markets, which continue to grow TPV, were negatively impacted quarter-over-quarter due to the strong Q3 growth from wider FX spreads in smaller markets, as previously disclosed.

Africa and Asia gross profit increased by 82% year-over-year to US$27.3 million, accounting for the remaining 33% of total gross profit. This annual comparison is explained by TPV growth in Egypt, ramp-up of commerce merchants in South Africa, and positive performance in Other Africa and Asia markets, including Turkey and Vietnam. Sequentially, gross profit increased by 21%, attributable to the positive performance in Egypt, Nigeria and Turkey in categories such as remittances, financial services, ads and streaming.

During the quarter, Revenue from Existing Merchants reached US$198.3 million compared to US$ 179.9 million in the third quarter of 2024. On the annual comparison, Revenue from Existing Merchants increased by 13% and the net revenue retention rate, or NRR, reached 106%.

Revenue from New Merchants accounted for US$6.1 million in the fourth quarter of 2024 compared to US$11.8 million in the same quarter of the prior year.

The tables below present the breakdown of dLocal’s TPV by product and type of flow:

In millions of US$ except for %	Three months ended December 31				Twelve months ended December 31
	2024	*% share*	2023	*% share*	2024	*% share*	2023	*% share*
Pay-ins	5,340	69%	3,701	72%	17,902	70%	12,823	73%
Pay-outs	2,373	31%	1,410	28%	7,673	30%	4,855	27%
Total TPV	7,714	*100*%	5,111	*100*%	25,575	*100*%	17,677	*100*%

In millions of US$ except for %	Three months ended December 31				Twelve months ended December 31
	2024	*% share*	2023	*% share*	2024	*% share*	2023	*% share*
Cross-border	3,740	48%	2,235	44%	11,902	47%	8,670	49%
Local-to-local	3,974	52%	2,876	56%	13,673	53%	9,007	51%
Total TPV	7,714	*100*%	5,111	*100*%	25,575	*100*%	17,677	*100*%

The tables below present the breakdown of dLocal’s revenue by geography:

In millions of US$ except for %	Three months ended December 31				Twelve months ended December 31
	2024	*% share*	2023	*% share*	2024	*% share*	2023	*% share*
Latin America	152.9	75%	131.5	70%	562.2	75%	492.7	76%
Brazil	33.7	16%	50.2	27%	152.0	20%	159.0	24%
Argentina	25.1	12%	10.5	6%	85.5	11%	75.1	12%
Mexico	40.5	20%	35.6	19%	149.2	20%	116.8	18%
Chile	13.5	7%	14.9	8%	51.2	7%	55.7	9%
Other LatAm	40.1	20%	20.3	11%	124.4	17%	86.1	13%

Africa & Asia	51.6	25%	56.5	30%	183.8	25%	157.7	24%
Nigeria	2.9	1%	28.4	15%	13.3	2%	84.0	13%
Egypt	21.4	10%	18.4	10%	94.0	13%	36.7	6%
Other Africa & Asia	27.4	13%	9.7	5%	76.5	10%	37.0	6%

Total Revenue	204.5	*100*%	188.0	*100*%	746.0	*100*%	650.4	*100*%

The tables below present the breakdown of dLocal’s gross profit by geography:

In millions of US$ except for %	Three months ended December 31				Twelve months ended December 31
	2024	*% share*	2023	*% share*	2024	*% share*	2023	*% share*
Latin America	56.4	67%	54.7	79%	214.2	73%	228.7	83%
Brazil	14.8	18%	25.5	37%	67.3	23%	78.8	28%
Argentina	9.2	11%	4.0	6%	28.7	10%	48.7	18%
Mexico	10.9	13%	9.3	13%	42.5	14%	34.7	13%
Chile	9.2	11%	9.1	13%	33.1	11%	34.0	12%
Other LatAm	12.4	15%	7.0	10%	42.6	14%	32.6	12%

Africa & Asia	27.3	33%	15.0	21%	80.5	27%	48.1	17%
Nigeria	2.4	3%	1.5	2%	6.6	2%	5.8	2%
Egypt	16.0	19%	9.6	14%	48.4	16%	26.1	9%
Other Africa & Asia	8.9	11%	3.9	6%	25.5	9%	16.2	6%

Total Gross Profit	83.7	*100*%	69.7	*100*%	294.7	*100*%	276.9	*100*%

Special note regarding Adjusted EBITDA and Adjusted EBITDA Margin

dLocal has only one operating segment. dLocal measures its operating segment’s performance by Revenues, Adjusted EBITDA and Adjusted EBITDA Margin, and uses these metrics to make decisions about allocating resources.

Adjusted EBITDA as used by dLocal is defined as the profit from operations before financing and taxation for the year or period, as applicable, before depreciation of property, plant and equipment, amortization of right-of-use assets and intangible assets, and further excluding the finance income and costs, impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges,other operating gain/loss,other non-recurring costs, and inflation adjustment. dLocal defines Adjusted EBITDA Margin as the Adjusted EBITDA divided by consolidated revenues.

Although Adjusted EBITDA and Adjusted EBITDA Margin may be commonly viewed as non-IFRS measures in other contexts, pursuant to IFRS 8, (“Operating Segments”), Adjusted EBITDA and Adjusted EBITDA Margin are treated by dLocal as IFRS measures based on the manner in which dLocal utilizes these measures. Nevertheless, dLocal’s Adjusted EBITDA and Adjusted EBITDA Margin metrics should not be viewed in isolation or as a substitute for net income for the periods presented under IFRS. dLocal also believes that its Adjusted EBITDA and Adjusted EBITDA Margin metrics are useful metrics used by analysts and investors, although these measures are not explicitly defined under IFRS. Additionally, the way dLocal calculates operating segment’s performance measures may be different from the calculations used by other entities, including competitors, and therefore, dLocal’s performance measures may not be comparable to those of other entities. Finally, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.

The table below presents a reconciliation of dLocal’s Adjusted EBITDA to net income:

$ in thousands	Three months ended December 31		Twelve months ended December 31
	2024	2023	2024	2023
Profit for the period	29,701	28,481	120,469	149,086
Income tax expense	11,090	7,476	30,550	29,428
Depreciation and amortization	4,888	3,604	17,177	12,225
Finance income and costs, net	1,085	(996)	(17,174)	(11,394)
Share-based payment non-cash charges	6,339	4,850	23,780	11,922
Other operating loss¹	1,307	–	5,257	–
Impairment loss / (gain) on financial assets	533	(657)	440	(3,136)
Inflation adjustment	392	6,040	6,655	12,537
Other non-recurring costs²	1,571	434	1,571	1,663
Adjusted EBITDA	56,906	49,232	188,725	202,332

Note: ¹ The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. 2 Other non-recurring costs consist of costs not directly associated with our core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2023 and 2024.

Special note regarding Adjusted Net Income

Adjusted Net Income is a non-IFRS financial measure. As used by dLocal, Adjusted Net Income is defined as the profit for the period (net income) excluding impairment gains/(losses) on financial assets, transaction costs, share-based payment non-cash charges, and other operating (gain)/loss, in line with our Adjusted EBITDA calculation (see detailed methodology for Adjusted EBITDA on page 13). It further excludes the accounting non-cash charges related to the fair value gain from the Argentine dollar-linked bonds, the exchange difference loss from the intercompany loan denominated in USD that we granted to our Argentine subsidiary to purchase the bonds, and the hedging cost associated with the Argentina treasury notes. In addition, it excludes the inflation adjustment based on IFRS rules for hyperinflationary economies. We believe Adjusted Net Income is a useful measure for understanding our results of operations while excluding certain non-cash effects such as currency devaluation, inflation, and hedging costs. Our calculation for Adjusted Net Income may differ from similarly-titled measures presented by other companies and should not be considered in isolation or as a replacement for our measure of profit for the period as presented in accordance with IFRS.

The table below presents a reconciliation of dLocal’s Adjusted net income:

$ in thousands	Three months ended December 31		Twelve months ended December 31
	2024	2023	2024	2023
Net income as reported	29,701	28,481	120,469	149,086
Inflation adjustment	392	6,040	6,655	12,537
Loan – exchange difference	2,332	51,858	22,602	81,024
Argentina Treasury Notes Hedging Costs	5,536	–	9,808	–
Fair value loss / (gain) of financial assets at FVTPL	(5,115)	(50,754)	(38,609)	(78,640)
Impairment loss / (gain) on financial assets	533	(657)	440	(3,135)
Share-based payment non-cash charges	6,339	4,850	23,780	11,922
Other operating loss¹	1,307	–	5,257	–
Other non-recurring costs³	1,571	434	1,571	1,663
Tax effect on adjustments	(1,310)	386	(899)	834
Adjusted net income	45,828	40,638	155,616	175,291

Unaudited quarterly results.

Note: ¹ The company wrote-off certain amounts related to merchants/processors off-boarded by dLocal. ² In Q4 2024, income tax was impacted by an income tax settlement related to previous periods, as disclosed in the Note 12 – Income Tax. ³ Other non-recurring costs consist of costs not directly associated with our core business activities, including costs associated with addressing the allegations made by a short-seller report and certain class action and other legal and regulatory expenses (which include fees from counsel, global expert services and a forensic accounting advisory firm) in 2023 and 2024.

Earnings per share

We calculate basic earnings per share by dividing the profit attributable to owners of the group by the weighted average number of common shares outstanding during the three-month and twelve-month periods ended December 31, 2024 and 2023.

Our diluted earnings per share is calculated by dividing the profit attributable to owners of the group of dLocal by the weighted average number of common shares outstanding during the period plus the weighted average number of common shares that would be issued on conversion of all dilutive potential common shares into common shares.

The following table presents the information used as a basis for the calculation of our earnings per share:

	Three months ended December 31		Twelve months ended December 31
	2024	2023	2024	2023
Profit attributable to common shareholders (USD)	29,682,000	28,515,000	120,416,000	148,964,000
Weighted average number of common shares	280,443,489	290,657,015	290,014,019	291,982,305
Adjustments for calculation of diluted earnings per share	14,417,466	5,008,261	15,122,271	10,976,123
Weighted average number of common shares for calculating diluted earnings per share	294,860,956	295,665,276	305,136,290	302,958,428
Basic earnings per share	0.11	0.10	0.42	0.51
Diluted earnings per share	0.10	0.10	0.39	0.49

This press release does not contain sufficient information to constitute an interim financial report as defined in International Accounting Standards 34, “Interim Financial Reporting” nor a financial statement as defined by International Accounting Standards 1 “Presentation of Financial Statements”. The quarterly financial information in this press release has not been audited, whereas the annual results for the year ended December 31, 2024 and 2023 are audited.

Conference call and webcast
dLocal’s management team will host a conference call and audio webcast on February 27, 2025 at 5:00 p.m. Eastern Time. Please click here to pre-register for the conference call and obtain your dial in number and passcode.

The live conference call can be accessed via audio webcast at the investor relations section of dLocal’s website, at https://investor.dlocal.com/. An archive of the webcast will be available for a year following the conclusion of the conference call. The investor presentation will also be filed on EDGAR at www.sec.gov.

About dLocal
dLocal powers local payments in emerging markets, connecting global enterprise merchants with billions of emerging market consumers in more than 40 countries across Africa, Asia, and Latin America. Through the “One dLocal” platform (one direct API, one platform, and one contract), global companies can accept payments, send pay-outs and settle funds globally without the need to manage separate pay-in and pay-out processors, set up numerous local entities, and integrate multiple acquirers and payment methods in each market.

Definition of selected operational metrics
“API” means application programming interface, which is a general term for programming techniques that are available for software developers when they integrate with a particular service or application. In the payments industry, APIs are usually provided by any party participating in the money flow (such as payment gateways, processors, and service providers) to facilitate the money transfer process.

“Cross-border” means a payment transaction whereby dLocal is collecting in one currency and settling into a different currency and/or in a different geography.

“Local payment methods” refers to any payment method that is processed in the country where the end user of the merchant sending or receiving payments is located, which include credit and debit cards, cash payments, bank transfers, mobile money, and digital wallets.

“Local-to-local” means a payment transaction whereby dLocal is collecting and settling in the same currency.

“Net Revenue Retention Rate” or “NRR” is a U.S. dollar-based measure of retention and growth of dLocal’s merchants. NRR is calculated for a period or year by dividing the Current Period/Year Revenue by the Prior Period/Year Revenue. The Prior Period/Year Revenue is the revenue billed by us to all our customers in the prior period. The Current Period/Year Revenue is the revenue billed by us in the current period to the same customers included in the Prior Period/Year Revenue. Current Period/Year Revenue includes revenues from any upselling and cross-selling across products, geographies, and payment methods to such merchant customers, and is net of any contractions or attrition, in respect of such merchant customers, and excludes revenue from new customers on-boarded in the preceding twelve months. As most of dLocal revenues come from existing merchants, the NRR rate is a key metric used by management, and we believe it is useful for investors in order to assess our retention of existing customers and growth in revenues from our existing customer base.

“Pay-in” means a payment transaction whereby dLocal’s merchant customers receive payment from their customers.

“Pay-out” means a payment transaction whereby dLocal disburses money in local currency to the business partners or customers of dLocal’s merchant customers.

“Revenue from New Merchants” means the revenue billed by us to merchant customers that we did not bill revenues in the same quarter (or period) of the prior year.

“Revenue from Existing Merchants” means the revenue billed by us in the last twelve months to the merchant customers that we billed revenue in the same quarter (or period) of the prior year.

“TPV” dLocal presents total payment volume, or TPV, which is an operating metric of the aggregate value of all payments successfully processed through dLocal’s payments platform. Because revenue depends significantly on the total value of transactions processed through the dLocal platform, management believes that TPV is an indicator of the success of dLocal’s global merchants, the satisfaction of their end users, and the scale and growth of dLocal’s business.

Rounding: We have made rounding adjustments to some of the figures included in this interim report. Accordingly, numerical figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

Forward-looking statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events, including guidance in respect of total payment volume, revenue, gross profit and Adjusted EBITDA. Forward-looking statements regarding dLocal and amounts stated as guidance are based on current management expectations and involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and “Cautionary Statement Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof. In addition, dLocal is unable to present a quantitative reconciliation of forward-looking guidance for Adjusted EBITDA, because dLocal cannot reliably predict certain of their necessary components, such as impairment gains/(losses) on financial assets, transaction costs, and inflation adjustment.

dLocal Limited
Certain financial information
Consolidated Condensed Interim Statements of Comprehensive Income for the three-month and twelve-month periods ended December 31, 2024 and 2023
(All amounts in thousands of U.S. Dollars except share data or as otherwise indicated)

	Three months ended December 31		Twelve months ended December 31
	2024	2023	2024	2023
Continuing operations
Revenues	204,491	188,005	745,974	650,351
Cost of services	(120,780)	(118,286)	(451,301)	(373,492)
Gross profit	83,711	69,719	294,673	276,859

Technology and development expenses	(6,822)	(4,024)	(25,625)	(12,650)
Sales and marketing expenses	(5,598)	(4,710)	(21,626)	(17,120)
General and administrative expenses	(27,183)	(20,641)	(101,225)	(70,568)
Impairment (loss)/gain on financial assets	(533)	657	(440)	3,136
Other operating (loss)/gain	(1,307)	–	(5,257)	–
Operating profit	42,268	41,001	140,500	179,657
Finance income	12,036	57,913	66,875	128,228
Finance costs	(13,121)	(56,917)	(49,701)	(116,834)
Inflation adjustment	(392)	(6,040)	(6,655)	(12,537)
Other results	(1,477)	(5,044)	10,519	(1,143)
Profit before income tax	40,791	35,957	151,019	178,514
Income tax expense	(11,090)	(7,476)	(30,550)	(29,428)
Profit for the period	29,701	28,481	120,469	149,086

Profit attributable to:
Owners of the Group	29,682	28,515	120,416	148,964
Non-controlling interest	19	(34)	53	122
Profit for the period	29,701	28,481	120,469	149,086

Earnings per share (in USD)
Basic Earnings per share	0.11	0.10	0.42	0.51
Diluted Earnings per share	0.10	0.10	0.39	0.49

Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange difference on translation on foreign operations	(4,417)	(9,054)	(11,188)	(7,713)
Other comprehensive income for the period, net of tax	(4,417)	(9,054)	(11,188)	(7,713)
Total comprehensive income for the period, net of tax	25,284	19,427	109,281	141,373

Total comprehensive income for the period
Owners of the Group	25,311	19,463	109,290	141,255
Non-controlling interest	(27)	(36)	(9)	118
Total comprehensive income for the period	25,284	19,427	109,281	141,373

dLocal Limited
Certain financial information
Consolidated Condensed Interim Statements of Financial Position as of December 31, 2024 and December 31, 2023
(All amounts in thousands of U.S. dollars)

	December 31, 2024	December 31, 2023
ASSETS
Current Assets
Cash and cash equivalents	425,172	536,160
Financial assets at fair value through profit or loss	129,319	102,677
Trade and other receivables	496,713	363,374
Derivative financial instruments	2,874	2,040
Other assets	18,805	11,782
Total Current Assets	1,072,883	1,016,033

Non-Current Assets
Financial assets at fair value through profit or loss	–	1,710
Trade and other receivables	18,044	–
Deferred tax assets	5,367	2,217
Property, plant and equipment	3,377	2,917
Right-of-use assets	3,645	3,689
Intangible assets	63,318	57,887
Other assets	4,695	–
Total Non-Current Assets	98,446	68,420
TOTAL ASSETS	1,171,329	1,084,453

LIABILITIES
Current Liabilities
Trade and other payables	597,787	602,493
Lease liabilities	1,137	626
Tax liabilities	21,515	20,800
Derivative financial instruments	6,227	948
Financial liabilities	50,455	–
Provisions	500	362
Total Current Liabilities	677,621	625,229

Non-Current Liabilities
Deferred tax liabilities	1,858	753
Lease liabilities	2,863	3,331
Total Non-Current Liabilities	4,721	4,084
TOTAL LIABILITIES	682,342	629,313

EQUITY
Share Capital	570	591
Share Premium	186,769	173,001
Treasury Shares	(200,980)	(99,936)
Capital Reserve	33,438	21,575
Other Reserves	(20,934)	(9,808)
Retained earnings	490,024	369,608
Total Equity Attributable to owners of the Group	488,887	455,031
Non-controlling interest	100	109
TOTAL EQUITY	488,987	455,140
TOTAL EQUITY AND LIABILITIES	1,171,329	1,084,453

dLocal Limited
Certain interim financial information
Consolidated Statements of Cash flows for the three-month and twelve-month periods ended December 31, 2024 and 2023
(All amounts in thousands of U.S. dollars)

	Three months ended December 31		Twelve months ended December 31
	2024	2023	2024	2023
Cash flows from operating activities
Profit before income tax	40,791	35,957	151,019	178,514
Adjustments:
Interest Income from financial instruments	(6,921)	(7,159)	(28,266)	(49,588)
Interest charges for lease liabilities	370	110	501	578
Other interests charges	739	2,503	3,758	5,623
Finance expense related to derivative financial instruments	(627)	5,497	19,462	28,013
Net exchange differences	5,914	50,100	24,787	82,620
Fair value loss/(gain) on financial assets at FVPL	(3,922)	(50,754)	(37,416)	(78,640)
Amortization of Intangible assets	4,364	3,251	15,511	10,816
Depreciation and disposals of PP&E and right-of-use	652	353	1,884	1,409
Share-based payment expense, net of forfeitures	6,339	4,850	23,780	11,922
Other operating gain	786	–	4,736	–
Net Impairment loss/(gain) on financial assets	533	2,796	440	318
Inflation adjustment and other financial results	(5,704)	9,041	(17,063)	9,041
	43,313	56,546	163,133	200,626
Changes in working capital
Increase in Trade and other receivables	(109,487)	(51,154)	(162,645)	(123,246)
Decrease / (Increase) in Other assets	4,128	13,258	5,427	45,007
Increase / (Decrease) in Trade and Other payables	(70,700)	52,654	(6,957)	194,619
Increase / (Decrease) in Tax Liabilities	(3,835)	(6,591)	(3,184)	(10,967)
Increase / (Decrease) in Provisions	222	(275)	138	(1,111)
Cash (used) / generated from operating activities	(136,359)	64,438	(4,088)	304,928
Income tax paid	(4,773)	(2,996)	(28,696)	(11,475)
Net cash (used) / generated from operating activities	(141,132)	61,442	(32,784)	293,453

Cash flows from investing activities
Acquisitions of Property, plant and equipment	(427)	21	(1,705)	(965)
Additions of Intangible assets	(5,699)	(4,758)	(20,942)	(17,260)
Acquisition of financial assets at FVPL	(14,852)	(15,847)	(121,468)	(117,517)
Collections of financial assets at FVPL	–	3,721	108,097	1,487
Interest collected from financial instruments	6,921	7,159	28,266	49,588
Payments for investments in other assets at FVPL	(10,000)	–	(10,000)	–
Net cash (used in) / generated investing activities	(24,057)	(9,704)	(17,752)	(84,667)

Cash flows from financing activities
Repurchase of shares	–	–	(101,067)	(97,929)
Share-options exercise paid	358	–	1,853	153
Interest payments on lease liability	(370)	(110)	(501)	(578)
Principal payments on lease liability	(112)	(315)	(552)	(1,103)
Finance expense paid related to derivative financial instruments	(8)	(7,640)	(15,017)	(28,443)
Net proceeds from financial liabilities	33,653	–	50,428	–
Interest payments on financial liabilities	(1,633)	–	(2,281)	–
Other finance expense paid	(327)	(2,851)	(1,450)	(5,971)
Net cash used in by financing activities	31,561	(10,916)	(68,587)	(133,871)
Net increase in cash flow	(133,628)	40,822	(119,123)	74,915

Cash and cash equivalents at the beginning of the period	560,533	498,165	536,160	468,092
Net (decrease)/increase in cash flow	(133,628)	40,822	(119,123)	74,915
Effects of exchange rate changes on inflation and cash and cash equivalents	(1,732)	(2,827)	8,135	(6,847)
Cash and cash equivalents at the end of the period	425,172	536,160	425,172	536,160

Investor Relations Contact:
investor@dlocal.com

Media Contact:
media@dlocal.com

MIL-OSI: Talen Energy Reports Full Year 2024 Results, Exceeds 2024 Guidance and Reaffirms 2025 Guidance

Source: GlobeNewswire (MIL-OSI)

Earnings Release Highlights

Full year GAAP Net Income (Loss) Attributable to Stockholders of $998 million.
Full year Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million, exceeding the 2024 guidance midpoints.
Reaffirming 2025 guidance; 2026 outlook unchanged.
Reached reliability-must-run (“RMR”) settlement agreement with PJM and key stakeholders to run Brandon Shores and H.A. Wagner generation facilities through May 31, 2029.
Repurchased approximately 13 million shares in 2024 (22% of total outstanding shares).

HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Talen Energy Corporation (“Talen,” the “Company,” “we,” or “our”) (NASDAQ: TLN), an independent power producer dedicated to powering the future, today reported its full year 2024 financial and operating results.

“Talen had an exciting year focused on unlocking value from existing assets. Our fleet ran well this year, earning $770 million of Adjusted EBITDA and $283 million of Adjusted Free Cash Flow. We sold our data center campus to AWS and announced a major agreement providing power directly to them, making Talen the first power company to do so. We are actively executing under this arrangement and pursuing commercial and regulatory solutions for the Susquehanna ISA amendment,” said Talen President and Chief Executive Officer Mac McFarland.

“We sold our ERCOT assets earlier in the year, realizing significant value that was largely returned to our shareholders, and in Q4, we reached a settlement with PJM and other stakeholders to continue running our Brandon Shores and H.A. Wagner generation facilities through May 2029, supporting grid reliability in Maryland.” McFarland continued. “We have simplified our capital structure and prioritized shareholder returns, repurchasing 22% of our outstanding shares this year. We remain focused on maximizing value and cash flow per share.”

Summary of Financial and Operating Results (Unaudited)

_{(Millions of Dollars)}	Year Ended December 31, 2024
GAAP Net Income (Loss) Attributable to Stockholders		$998
Adjusted EBITDA		770
Adjusted Free Cash Flow		283

	Year Ended December 31, 2024		Year Ended December 31, 2023
Total Generation (TWh) ^(a)	36.3		32.5
Carbon-Free Generation	50	%	55	%
OSHA TRIR ^(b)	0.34		0.58
Fleet EFOF ^(c)	2.2	%	5.5	%

__________________
^{(a) Total generation is net of station use consumption, where applicable, includes volumes produced by Susquehanna in support of Nautilus operations and includes generation from ERCOT assets through April 2024.}
^{(b) OSHA Total Recordable Incident Rate (“OSHA TRIR”) is the number of recordable incidents x 200,000 / total number of manhours worked. Only includes Talen-operated generation facilities (i.e., excludes Conemaugh and Keystone).}
^{(c) Fleet Equivalent Forced Outage Factor (“Fleet EFOF”) is the percentage of a given period in which a generating unit is not available due to forced outages and forced de-rates. Represents all generation facilities, including our portion of partially-owned facilities.}

For the year ended December 31, 2024, we reported GAAP Net Income (Loss) Attributable to Stockholders of $998 million, Adjusted EBITDA of $770 million and Adjusted Free Cash Flow of $283 million. 2024 Adjusted EBITDA and Adjusted Free Cash Flow exceeded the 2024 guidance midpoints of $765 million and $275 million, respectively.

Given the impacts of fresh start accounting and the implementation of the plan of reorganization in the second quarter 2023, our full year 2024 results are not comparable to 2023.

Full year 2024 results were supported by strong operational performance across the generation fleet, the benefits from hedging activities, the impact of the Nuclear PTC, and disciplined cost management, despite the absence of earnings from the ERCOT generation portfolio that was sold in May 2024.

Our generation fleet continued to run reliably and safely, with a Fleet EFOF of 2.2% and an OSHA TRIR of 0.34. Total generation was 36.3 TWh, with 50% contributed from carbon-free nuclear generation at our Susquehanna nuclear facility. Also, our PJM gas-fired assets were dispatched more frequently during times of peak load than they were in 2023.

Reaffirming 2025 Guidance; 2026 Outlook Unchanged

_{(Millions of Dollars)}	Range
2025E Adjusted EBITDA	$925 – $1,175
2025E Adjusted Free Cash Flow	$395 – $595

_{(Millions of Dollars)}	Range
2026E Adjusted EBITDA	$1,130 – $1,530
2026E Adjusted Free Cash Flow	$535 – $895

RMR Arrangements

In December 2024, we reached an agreement with PJM, FERC staff, Maryland PSC and public utilities on the terms of RMR arrangements for our Brandon Shores and H.A. Wagner generation facilities. On January 27, 2025, we filed with FERC the resulting Joint Offers of Settlement regarding both facilities’ RMR Continuing Operations Rates Schedules, and they remain subject to FERC approval. If approved, the proposed RMR arrangements will extend the operating life of these facilities through May 31, 2029, or until such time as the necessary transmission upgrades are placed into service. Beginning June 1, 2025, we expect to receive $145 million annually for Brandon Shores and $35 million for H.A. Wagner with some performance incentives. Additionally, we expect to receive reimbursement for variable costs and approved project investments.

Update on Share Repurchase Program

Since the start of 2024, we have repurchased approximately 22% of our outstanding shares for a total of $1.95 billion, with $1.1 billion of remaining share repurchase program capacity through year-end 2026. During the fourth quarter 2024, we repurchased approximately 5 million shares of stock from our largest shareholder. All share repurchase amounts are excluding transaction costs.

Balance Sheet and Liquidity

We are focused on maintaining net leverage below our target of 3.5x net debt-to-Adjusted EBITDA, along with ample liquidity. As of February 21, 2025, we had total available liquidity of approximately $1.2 billion, comprised of $474 million of unrestricted cash and $700 million of available capacity under the revolving credit facility. Our current net leverage ratio, utilizing the 2024 Adjusted EBITDA and net debt balance as of February 21, 2025, is approximately 3.3x.

Update on Hedging Activities

As of December 31, 2024, including the impact of the Nuclear PTC, we had hedged approximately 89% of our expected generation volumes for 2025 and 33% for 2026. The Company’s hedging program is a key component of our comprehensive risk policy and supports the objective of increasing cash flow stability while maintaining upside optionality.

As an update on nuclear fuel supply activities, the nuclear fuel cycle is fully contracted through the 2027 fuel load, almost entirely contracted through 2028, and over 70% contracted through 2029. These percentages are based on total nuclear fuel costs across all phases and assume current market pricing for the portion not yet under contract.

Earnings Call

The Company will hold an earnings call on Thursday, February 27, 2025, at 4:30 p.m. EST (3:30 p.m. CST). To listen to the earnings call, please register in advance for the webcast here. For participants joining the call via phone, please register here prior to the start time to receive dial-in information. For those unable to participate in the live event, a digital replay of the earnings call will be archived for approximately one year and available on Talen’s Investor Relations website at https://ir.talenenergy.com/news-events/events.

About Talen

Talen Energy (NASDAQ: TLN) is a leading independent power producer and energy infrastructure company dedicated to powering the future. We own and operate approximately 10.7 gigawatts of power infrastructure in the United States, including 2.2 gigawatts of nuclear power and a significant dispatchable fossil fleet. We produce and sell electricity, capacity, and ancillary services into wholesale U.S. power markets, with our generation fleet principally located in the Mid-Atlantic and Montana. Our team is committed to generating power safely and reliably and delivering the most value per megawatt produced. Talen is also powering the digital infrastructure revolution. We are well-positioned to capture this significant growth opportunity, as data centers serving artificial intelligence increasingly demand more reliable, clean power. Talen is headquartered in Houston, Texas. For more information, visit https://www.talenenergy.com/.

Investor Relations:

Ellen Liu
Senior Director, Investor Relations
InvestorRelations@talenenergy.com

Media:

Taryne Williams
Director, Corporate Communications
Taryne.Williams@talenenergy.com

Forward-Looking Statements

This communication contains forward-looking statements within the meaning of the federal securities laws, which statements are subject to substantial risks and uncertainties. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this communication, or incorporated by reference into this communication, are forward-looking statements. Throughout this communication, we have attempted to identify forward-looking statements by using words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecasts,” “goal,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” or other forms of these words or similar words or expressions or the negative thereof, although not all forward-looking statements contain these terms. Forward-looking statements address future events and conditions concerning, among other things, capital expenditures, earnings, litigation, regulatory matters, hedging, liquidity and capital resources and accounting matters. Forward-looking statements are subject to substantial risks and uncertainties that could cause our future business, financial condition, results of operations or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this communication. All of our forward-looking statements include assumptions underlying or relating to such statements that may cause actual results to differ materially from expectations, and are subject to numerous factors that present considerable risks and uncertainties.

TALEN ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS

	Successor						Predecessor
_{(Millions of Dollars, except share data)}	Year Ended December 31, 2024			May 18 through December 31, 2023			January 1 through May 17, 2023
Capacity revenues	$	192		$	133		$	108
Energy and other revenues		1,881			1,156			1,042
Unrealized gain (loss) on derivative instruments		42			55			60
Operating Revenues		2,115			1,344			1,210

Fuel and energy purchases		(694	)		(424	)		(176	)
Nuclear fuel amortization		(123	)		(108	)		(33	)
Unrealized gain (loss) on derivative instruments		20			(3	)		(123	)
Energy Expenses		(797	)		(535	)		(332	)

Operating Expenses
Operation, maintenance and development		(592	)		(358	)		(285	)
General and administrative		(163	)		(93	)		(51	)
Depreciation, amortization and accretion		(298	)		(165	)		(200	)
Impairments		(1	)		(3	)		(381	)
Other operating income (expense), net		(38	)		(30	)		(37	)
Operating Income (Loss)		226			160			(76	)
Nuclear decommissioning trust funds gain (loss), net		178			108			57
Interest expense and other finance charges		(238	)		(176	)		(163	)
Reorganization income (expense), net		—			—			799
Gain (loss) on sale of assets, net		884			7			50
Other non-operating income (expense), net		61			95			10
Income (Loss) Before Income Taxes		1,111			194			677
Income tax benefit (expense)		(98	)		(51	)		(212	)
Net Income (Loss)		1,013			143			465
Less: Net income (loss) attributable to noncontrolling interest		15			9			(14	)
Net Income (Loss) Attributable to Stockholders (Successor) / Member (Predecessor)	$	998		$	134		$	479
Per Common Share (Successor)
Net Income (Loss) Attributable to Stockholders – Basic	$	18.40		$	2.27		N/A
Net Income (Loss) Attributable to Stockholders – Diluted	$	17.67		$	2.26		N/A
Weighted-Average Number of Common Shares Outstanding – Basic (in thousands)		54,254			59,029		N/A
Weighted-Average Number of Common Shares Outstanding – Diluted (in thousands)		56,486			59,399		N/A

TALEN ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

	Successor
_{(Millions of Dollars, except share data)}	December 31, 2024			December 31, 2023
Assets
Cash and cash equivalents	$	328		$	400
Restricted cash and cash equivalents		37			501
Accounts receivable		123			137
Inventory, net		302			375
Derivative instruments		66			89
Other current assets		184			52
Total current assets		1,040			1,554
Property, plant and equipment, net		3,154			3,839
Nuclear decommissioning trust funds		1,724			1,575
Derivative instruments		5			6
Other noncurrent assets		183			147
Total Assets	$	6,106		$	7,121

Liabilities and Equity
Long-term debt, due within one year	$	17		$	9
Accrued interest		18			32
Accounts payable and other accrued liabilities		266			344
Derivative instruments		—			32
Other current liabilities		154			69
Total current liabilities		455			486
Long-term debt		2,987			2,811
Derivative instruments		7			11
Postretirement benefit obligations		305			368
Asset retirement obligations and accrued environmental costs		468			469
Deferred income taxes		362			407
Other noncurrent liabilities		135			35
Total Liabilities	$	4,719		$	4,587
Commitments and Contingencies

Stockholders’ Equity
Common stock ($0.001 par value 350,000,000 shares authorized) ^(a)	$	—		$	—
Additional paid-in capital		1,725			2,346
Accumulated retained earnings (deficit)		(326	)		134
Accumulated other comprehensive income (loss)		(12	)		(23	)
Total Stockholders’ Equity		1,387			2,457
Noncontrolling interests		—			77
Total Equity		1,387			2,534
Total Liabilities and Equity	$	6,106		$	7,121

__________________

^{(a) 45,961,910 and 59,028,843 shares issued and outstanding as of December 31, 2024 (Successor) and December 31, 2023 (Successor), respectively.}

TALEN ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

	Successor						Predecessor
_{(Millions of Dollars)}	Year Ended December 31, 2024			May 18 through December 31, 2023			January 1 through May 17, 2023
Operating Activities
Net income (loss)	$	1,013		$	143		$	465
Non-cash reconciliation adjustments:
(Gain) loss on AWS Data Campus Sale and ERCOT Sale		(886	)		—			—
Depreciation, amortization and accretion		285			157			208
NDT funds (gain) loss, net (excluding interest and fees)		(130	)		(78	)		(43	)
Nuclear fuel amortization		123			108			33
Unrealized (gains) losses on derivative instruments		(69	)		(40	)		65
Deferred income taxes		(46	)		55			195
Impairments		1			3			381
(Gain) loss on sales of assets, net		—			(7	)		(50	)
Reorganization (income) expense, net		—			—			(933	)
Other		(26	)		7			7
Changes in assets and liabilities:
Inventory, net		67			(68	)		10
Accounts receivable		14			8			261
Other assets		(61	)		147			98
Accounts payable and accrued liabilities		(69	)		(49	)		(69	)
Accrued interest		(15	)		28			(124	)
Other liabilities		55			(12	)		(42	)
Net cash provided by (used in) operating activities		256			402			462
Investing Activities
NDT funds investment purchases		(2,295	)		(1,290	)		(959	)
NDT funds investment sale proceeds		2,263			1,265			949
Proceeds from AWS Data Campus Sale and ERCOT Sale		1,398			—			—
Nuclear fuel expenditures		(104	)		(45	)		(49	)
Property, plant and equipment expenditures		(85	)		(116	)		(138	)
Equity investments in affiliates		(10	)		(5	)		(8	)
Proceeds from the sale of assets		2			8			46
Other investing activities		2			12			2
Net cash provided by (used in) investing activities		1,171			(171	)		(157	)

TALEN ENERGY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

	Successor						Predecessor
_{(Millions of Dollars)}	Year Ended December 31, 2024			May 18 through December 31, 2023			January 1 through May 17, 2023
Financing Activities
Share repurchases		(1,958	)		—			—
TES debt issuance		849			—			—
TES debt repayments		(479	)		—			—
Cumulus Digital TLF repayment		(182	)		(15	)		—
Repurchase of noncontrolling interest		(125	)		(19	)		—
Cash settlement of restricted stock units		(32	)		—			—
Exercise or repurchase of warrants		(16	)		(40	)		—
Deferred financing costs		(13	)		(7	)		(74	)
LMBE-MC TLB payments		—			(294	)		(7	)
TLB-1 proceeds, net		—			288			—
Repayment of prepetition secured indebtedness		—			—			(3,898	)
Financing proceeds at Emergence, net of discount		—			—			2,219
Contributions from member		—			—			1,393
Payment of make-whole premiums on prepetition secured indebtedness		—			—			(152	)
Derivatives with financing elements		—			—			(20	)
Other		(7	)		3			—
Net cash provided by (used in) financing activities		(1,963	)		(84	)		(539	)
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash and Cash Equivalents		(536	)		147			(234	)
Beginning of period cash and cash equivalents and restricted cash and cash equivalents		901			754			988
End of period cash and cash equivalents and restricted cash and cash equivalents	$	365		$	901		$	754

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted Free Cash flow, which we use as measures of our performance and liquidity, are not financial measures prepared under GAAP. Non-GAAP financial measures do not have definitions under GAAP and may be defined and calculated differently by, and not be comparable to, similarly titled measures used by other companies. Non-GAAP measures are not intended to replace the most comparable GAAP measures as indicators of performance. Generally, a non-GAAP financial measures is a numerical measure of financial performance, financial position, or cash flows that excludes (or includes) amounts that are included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP. Management cautions readers not to place undue reliance on the following non-GAAP financial measures, but to also consider them along with their most directly comparable GAAP financial measures. Non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analyzing our results as reported under GAAP.

Adjusted EBITDA

We use Adjusted EBITDA to: (i) assist in comparing operating performance and readily view operating trends on a consistent basis from period to period without certain items that may distort financial results; (ii) plan and forecast overall expectations and evaluate actual results against such expectations; (iii) communicate with our Board of Directors, shareholders, creditors, analysts, and the broader financial community concerning our financial performance; (iv) set performance metrics for our annual short-term incentive compensation; and (v) assess compliance with our indebtedness.

Adjusted EBITDA is computed as net income (loss) adjusted, among other things, for certain: (i) nonrecurring charges; (ii) non-recurring gains; (iii) non-cash and other items; (iv) unusual market events; (v) any depreciation, amortization, or accretion; (vi) mark-to-market gains or losses; (vii) gains and losses on the nuclear facility decommissioning trust (“NDT”); (viii) gains and losses on asset sales, dispositions, and asset retirement; (ix) impairments, obsolescence, and net realizable value charges; (x) interest expense; (xi) income taxes; (xii) legal settlements, liquidated damages, and contractual terminations; (xiii) development expenses; (xiv) noncontrolling interests, except where otherwise noted; and (xv) other adjustments. Such adjustments are computed consistently with the provisions of our indebtedness to the extent that they can be derived from the financial records of the business. Pursuant to TES’s debt agreements, Cumulus Digital contributes to Adjusted EBITDA beginning in the first quarter 2024, following termination of the Cumulus Digital credit facility and associated cash flow sweep.

Additionally, we believe investors commonly adjust net income (loss) information to eliminate the effect of nonrecurring restructuring expenses and other non-cash charges, which can vary widely from company to company and from period to period and impair comparability. We believe Adjusted EBITDA is useful to investors and other users of our financial statements to evaluate our operating performance because it provides an additional tool to compare business performance across companies and between periods. Adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to such items described above. These adjustments can vary substantially from company to company and period to period depending upon accounting policies, book value of assets, capital structure, and the method by which assets were acquired.

Adjusted Free Cash Flow

Adjusted Free Cash Flow is utilized by our chief operating decision makers to evaluate cash flow activities. Adjusted Free Cash Flow is computed as Adjusted EBITDA reduced by capital expenditures (including nuclear fuel but excluding development, growth, and (or) conversion capital expenditures), cash payments for interest and finance charges, cash payments for taxes (excluding income taxes paid from the NDT, taxes paid or deductions taken as a result of strategic asset sales, and benefits of the Nuclear PTC utilized to reduce taxes paid), and pension contributions.

We believe Adjusted Free Cash Flow is useful to investors and other users of our financial statements in evaluating our operating performance because it provides them with an additional tool to determine a company’s ability to meet future obligations and to compare business performance across companies and across periods. Adjusted Free Cash Flow is widely used by investors to measure a company’s levered cash flow without regard to items such as ARO settlements; nonrecurring development, growth and conversion expenditures; and cash proceeds or payments for the sale or purchase of assets, which can vary substantially from company to company and from period to period depending upon accounting methods, book value of assets, capital structure, and the method by which assets were acquired.

Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation

The following table presents a reconciliation of the GAAP financial measures of “Net Income (Loss)” presented on the Consolidated Statements of Operations to the non-GAAP financial measures of Adjusted EBITDA and Adjusted Free Cash Flow:

	Successor						Predecessor
_{(Millions of Dollars)}	Year Ended December 31, 2024			May 18 through December 31, 2023			January 1 through May 17, 2023
Net Income (Loss)	$	1,013		$	143		$	465
Adjustments
Interest expense and other finance charges		238			176			163
Income tax (benefit) expense		98			51			212
Depreciation, amortization and accretion		298			165			200
Nuclear fuel amortization		123			108			33
Reorganization (gain) loss, net ^(a)		—			—			(799	)
Unrealized (gain) loss on commodity derivative contracts		(62	)		(52	)		63
Nuclear decommissioning trust funds (gain) loss, net		(178	)		(108	)		(57	)
Stock-based compensation expense		33			19			—
Long-term incentive compensation expense		21			2			—
(Gain) loss on asset sales, net ^(b)		(884	)		(7	)		(50	)
Non-cash impairments ^(c)		1			3			381
Legal settlements and litigation costs ^(d)		(10	)		(84	)		1
Unusual market events ^(d)		(1	)		(19	)		14
Net periodic defined benefit cost		14			2			(3	)
Operational and other restructuring activities ^{(e) (f)}		76			48			17
Development expenses		1			7			10
Non-cash inventory net realizable value, obsolescence, and other charges ^(g)		20			4			56
Noncontrolling interest		(21	)		(42	)		(14	)
Other		(10	)		10			3
Total Adjusted EBITDA	$	770		$	426		$	695

Capital expenditures, net		(177	)		(112	)		(96	)
Interest and finance charge payments		(252	)		(132	)		(173	)
Tax payments		(4	)		(5	)		(5	)
Pension contributions		(54	)		(8	)		(3	)
Total Adjusted Free Cash Flow	$	283		$	169		$	418

_______________

^{(a) See Note 4 to the FY 2024 Financial Statements for additional information.}
^{(b) See Note 20 to the FY 2024 Financial Statements for additional information.}
^{(c) See Note 10 to the FY 2024 Financial Statements for additional information.}
^{(d) See Note 12 to the FY 2024 Financial Statements for additional information.}
^{(e) The year ended December 31, 2024 (Successor) primarily includes the effects of nonrecurring ERCOT hedge settlements that occurred after the ERCOT Sale and severance payments associated with cost reduction initiatives.}
^{(f) The periods from May 18 through December 31, 2023 (Successor) and from January 1 through May 17, 2023 (Predecessor) include the effects of nonrecurring costs associated with exit from the Restructuring, severance costs associated with cost reduction initiatives, and nonrecurring post-Restructuring strategic initiative costs.}
^{(g) See Note 8 to the FY 2024 Financial Statements for additional information.}

Adjusted EBITDA / Adjusted Free Cash Flow Reconciliation: 2025 Guidance

	2025E
_{(Millions of dollars)}	Low			High
Net Income (Loss)	$	155		$	375

Adjustments
Interest expense and other finance charges		235			245
Income tax (benefit) expense		60			80
Depreciation, amortization and accretion		295			295
Nuclear fuel amortization		105			105
Unrealized (gain) loss on commodity derivative contracts		75			75
Adjusted EBITDA	$	925		$	1,175

Capital expenditures, net	$	(195	)	$	(205	)
Interest and finance charge payments		(215	)		(225	)
Tax payments		(50	)		(70	)
Pension contributions		(70	)		(80	)
Adjusted Free Cash Flow	$	395		$	595

_______________

^{Note: Figures are rounded to the nearest $5 million.}

MIL-OSI: Flywire to Attend Upcoming Investor Conferences

Source: GlobeNewswire (MIL-OSI)

BOSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Flywire Corporation (Nasdaq: FLYW)(“Flywire” or the “Company”) a global payments enablement and software company, today announced that the Company will be attending the following upcoming investor conferences:

On Monday, March 3, 2025, the Company will attend the Raymond James Institutional Investors Conference in Orlando, FL. They will participate in investor meetings.
On Wednesday, March 5, 2025, the Company will attend the Morgan Stanley Technology, Media & Telecom Conference in San Francisco, CA. They will participate in a fireside chat discussion which will begin at 12:20pm PST.
On Tuesday, March 11, 2025, the Company will attend the Wolfe FinTech Forum in New York, NY. They will participate in a fireside chat discussion which will begin at 8:40am EST.

The fireside chat discussions will be webcast live from Flywire’s investor relations website at https://ir.flywire.com/. A replay of the webcasts will be available on the investor relations website for 90 days following the discussions.

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

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

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

Contacts
Investor Relations:
Masha Kahn
ir@Flywire.com

Media:
Sarah King
media@flywire.com

MIL-OSI: Inuvo Reports Record Fourth Quarter 2024 Revenue of $26.2 Million, 26% Year-Over-Year Growth and Net Income

Source: GlobeNewswire (MIL-OSI)

Q4 2024 Net Income of $141 thousand and Adjusted EBITDA of $1.2 million

Inuvo management to host conference call today at 4:15 PM ET

LITTLE ROCK, Ark., Feb. 27, 2025 (GLOBE NEWSWIRE) — Inuvo, Inc. (NYSE American: INUV), a leading provider of artificial intelligence AdTech solutions, today provided a business update and announced its financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights:

Revenue was a record $26.2 million, a 26% increase compared to $20.8 million in Q4 2023
Gross profit increased 20% to $21.8 million, compared to $18.2 million in Q4 2023
Net income was $141 thousand, compared to net loss of $2.4 million for Q4 2023
Adjusted EBITDA was $1.2 million, compared to a loss of $1.2 million for Q4 2023

Full Year 2024 Financial Highlights:

Revenue increased 13% to $83.8 million, compared to $73.9 million in 2023
Gross profit increased 13% to $71.8 million, compared to $63.4 million in 2023
Net loss decreased by 45% to a loss of $5.8 million, compared to a net loss of $10.4 million in 2023
Adjusted EBITDA loss improved sixfold to $816,000 compared to $5.3 million in 2023
$230,000 in Net Cash from Operating activities was generated in 2024

2024 Operational Highlights:

Secured a Master Services Agreement with one of the largest retailers in the world
Signed 33 new agencies/brands and one new platform during the year
Secured a $10.0 million credit line in July
Launched enhancements to the IntentKey Self-Serve Platform, an advanced AI agent specifically designed for audience modeling

Richard Howe, CEO of Inuvo, stated, “Q4 2024 was a record-breaking quarter, delivering 26% year-over-year growth and generating $26.2 million in revenue—our largest quarter ever. This strong performance contributed to a 13% revenue increase for the full fiscal year. Over the past 18 quarters, we have sustained an approximately 7% compounded quarterly growth rate. This year, all our key financial metrics had strong year-over-year improvements. Notably, in Q4, we achieved positive net income and adjusted EBITDA.”

Mr. Howe continued, “We made a number of significant technological advancements in 2024, most notably the enhancements to the IntentKey Self-Serve Platform. This groundbreaking innovation democratizes advertising by allowing anyone of any caliber to describe and then immediately execute targeting, giving the AI nothing other than some simple audience descriptions.”

Financial Results for the Fourth Quarter and Full Year Ended December 31, 2024

Net revenue for the fourth quarter of 2024 totaled $26.2 million, compared to $20.8 million for the same period last year, a 26% year-over-year increase. The higher revenue was due to increasing demand within both Platforms and Agencies & Brands. Net revenue for the year ended December 31, 2024 totaled $83.8 million, compared to $73.9 million during the same period in 2023, a 13% year-over-year increase.

Cost of revenue for the fourth quarter of 2024, totaled $4.4 million compared to $2.6 million for the same period last year. Cost of revenue for the full year ended December 31, 2024, totaled $12.0 million, as compared to $10.5 million for the same period last year. The increase in the cost of revenue for the three months and full year ended December 31, 2024, as compared to the same period last year, was due to higher revenue within a Platform client this year.

Gross profit for the fourth quarter of 2024 and full year ended December 31, 2024 totaled $21.8 million and $71.8 million, respectively, as compared $18.2 million and $63.4 million, respectively, for the same periods last year. Gross profit margin for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately 83.1% and 85.6%, respectively, as compared to 87.3% and 85.8%, respectively, for the same periods last year.

Operating expenses for the fourth quarter of 2024 totaled $21.5 million, compared to $20.6 million for the same period last year. Operating expenses for the full year ended December 31, 2024 totaled $77.3 million, compared to $73.8 million for the same period last year. The higher operating expenses for the year ended December 31, 2024 was primarily driven by a 14.8% increase in Marketing costs compared to the same period in 2023. This increase was largely attributable to higher revenue from Platform advertisers.

Net interest expense/income for the fourth quarter of 2024 and the full year ended December 31, 2024 was approximately an expense of $103 thousand and an income of $267 thousand, respectively, compared to an income of approximately $8 thousand and an expense of $30 thousand for the same periods last year, respectively. The higher interest expense this year was due to increased borrowing from our line of credit.

Other expense/income for both the fourth quarter of 2024 and the full year ended December 31, 2024 was income of approximately $27 thousand, respectively, compared to income of approximately $0 and $15 thousand for the same periods last year, respectively. The income for this year was due to setup charges for new Platform partners. Last year’s income was due to unrealized and realized gains on trading securities.

Net income for the fourth quarter of 2024 was $141 thousand, or $0.00 per basic and diluted share, as compared to net loss of $2.4 million, or $0.02 per basic and diluted share, for the same period last year. Net loss for the full year ended December 31, 2024 totaled $5.8 million, or $0.04 per basic and diluted share, as compared to net loss of $10.4 million, or $0.08 per basic and diluted share, for the same period last year.

Adjusted EBITDA [see reconciliation table below] was approximately $1.2 million in the fourth quarter of 2024, compared to an Adjusted EBITDA loss of approximately $1.2 million for the same period last year. Adjusted EBITDA was a loss of approximately $816 thousand for the full year ended December 31, 2024, compared to a loss of approximately $5.3 million for the same period last year.

Liquidity and Capital Resources:

On December 31, 2024, Inuvo had $2.5 million in cash and cash equivalents, an unused working capital facility of $10.0 million and no debt.

As of February 21, 2025, Inuvo had 142,795,483 common shares issued and outstanding.

Conference Call Details:
Date: Thursday, February 27, 2025
Time: 4:15 p.m. Eastern Standard Time
Toll-free Dial-in Number: 1-800-717-1738
International Dial-in Number: 1-646-307-1865
Conference ID: 11158080
Webcast Link: HERE

A telephone replay will be available through Thursday, March 13, 2025. To access the replay, please dial 1- 844-512-2921 (domestic) or 1-412-317-6671 (international). At the system prompt, please enter the code 11158080 followed by the # sign. You will then be prompted for your name, company, and phone number. Playback will then automatically begin.

About Inuvo

Inuvo^®, Inc. (NYSE American: INUV) is a market leader in Artificial Intelligence built for advertising. Its IntentKey AI solution is a first-of-its-kind proprietary and patented technology capable of identifying and actioning to the reasons why consumers are interested in products, services, or brands, not who those consumers are. To learn more, visit www.inuvo.com.

Safe Harbor / Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including, without limitation risks detailed from time to time in our filings with the Securities and Exchange Commission (the “SEC”), and represent our views only as of the date they are made and should not be relied upon as representing our views as of any subsequent date. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Inuvo, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 as filed on February 27, 2025, and our other filings with the SEC. Inuvo cannot provide assurances that the assumptions upon which these forward-looking statements are based will prove to have been correct. Should one of these risks materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and investors are cautioned not to place undue reliance on these forward-looking statements, which are current only as of this date. Inuvo does not intend to update or revise any forward-looking statements made herein or any other forward-looking statements as a result of new information, future events or otherwise. Inuvo further expressly disclaims any written or oral statements made by a third-party regarding the subject matter of this press release. The information which appears on our websites and our social media platforms is not part of this press release.

Inuvo Company Contact:
Wally Ruiz
Chief Financial Officer
Tel (501) 205-8397
wallace.ruiz@inuvo.com

Investor Relations:
David Waldman / Natalya Rudman
Crescendo Communications, LLC
Tel: (212) 671-1020
inuv@crescendo-ir.com

(tables follow)

INUVO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended						Twelve Months Ended
	December 31			December 31			December 31			December 31
		2024			2023			2024			2023
Net revenue	$	26,189,924		$	20,842,095		$	83,793,859		$	73,911,528
Cost of revenue		4,433,905			2,643,543			12,033,777			10,477,272
Gross profit		21,756,019			18,198,552			71,760,082			63,434,256
Operating expenses:		83.1	%		87.3	%		85.6	%		85.8	%
Marketing costs		17,122,706			15,212,600			59,663,061			51,982,572
Compensation		2,703,309			3,591,109			12,065,783			13,793,309
General and administrative		1,709,887			1,821,821			5,545,049			8,050,590
Total operating expenses		21,535,902			20,625,530			77,273,893			73,826,771
Operating income (loss)		220,117			(2,426,978	)		(5,513,811	)		(10,392,515	)
Interest expense (income), net		102,910			(7,884	)		266,772			29,570
Other income		26,812			–			26,812			14,668
Income tax expense (benefit)		2,678			(17,764	)		8,030			(17,764	)
Net income (loss)		141,341			(2,401,330	)		(5,761,801	)		(10,389,653	)
Other comprehensive income:
Unrealized loss on marketable securities		–			–			–			84,868
Comprehensive income (loss)	$	141,341		$	(2,401,330	)	$	(5,761,801	)	$	(10,304,785	)

Net loss per share, basic and diluted	$0.00			($0.02		)	($0.04		)	($0.08		)
Weighted average shares outstanding:
Basic		140,494,192			127,381,051			139,968,374			131,116,370
Diluted		140,494,192			127,381,051			139,968,374			131,116,370

INUVO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS


	December 31		December 31
	2024		2023
Assets

Cash and cash equivalent	$	2,459,245	$	4,440,454
Accounts receivable, net		12,545,771		9,226,956
Prepaid expenses and other current assets		639,805		1,076,121
Total current assets		15,644,821		14,743,531

Property and equipment, net		1,792,903		1,680,788

Goodwill		9,853,342		9,853,342
Intangible assets, net of accumulated amortization		3,897,875		4,664,791
Other assets		1,006,990		1,431,692

Total assets	$	32,195,931	$	32,374,144

Liabilities and Stockholders’ Equity

Current liabilities
Accounts payable	$	8,422,351	$	6,432,120
Accrued expenses and other current liabilities		9,463,537		8,100,354
Total current liabilities		17,885,888		14,532,474

Long-term liabilities		835,271		859,484

Total stockholders’ equity		13,474,772		16,982,186
Total liabilities and stockholders’ equity	$	32,195,931	$	32,374,144

RECONCILIATION OF LOSS FROM CONTINUING OPERATIONS BEFORE TAXES TO ADJUSTED EBITDA
(unaudited)

	Three Months Ended					Twelve Months Ended
		December 31	December 31			December 31			December 31
		2024		2023			2024			2023
Net income (loss)		141,341		(2,401,330	)	$	(5,761,801	)	$	(10,389,653	)
Interest expense (income), net		102,910		(7,884	)		266,772			29,570
Income tax expense (benefit)		2,678		(17,764	)		8,030			(17,764	)
Depreciation and amortization on PP&E		446,608		425,106			1,745,261			1,670,868
Amortization		123,412		264,523			824,272			1,080,690
EBITDA		816,949		(1,737,349	)		(2,917,466	)		(7,626,289	)
Stock-based compensation		413,911		514,613			1,501,444			1,986,296
Non recurring items:
Unrealized loss on marketable securities										14,668
Doubtful account reserve										361,097
Impairment & amortization of services agreement							600,000
Adjusted EBITDA		1,230,860		(1,222,736	)		(816,022	)		(5,264,228	)

Reconciliation of Operating Loss to EBITDA and Adjusted EBITDA

We present EBITDA and Adjusted EBITDA as a supplemental measure of our performance. We defined EBITDA as Net loss plus (i) interest expense, (ii) income tax expense, (iii) depreciation, and (iv) amortization. We further define Adjusted EBITDA as EBITDA plus (v) stock-based compensation and (vi) certain identified expenses that are not expected to recur or be representative of future ongoing operation of the business. These adjustments are itemized above. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate for supplemental analysis. In evaluating EBITDA and Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same or similar to some of the adjustments in the presentation. Our presentation of EBITDA and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items.

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

Source: GlobeNewswire (MIL-OSI)

Full year SaaS revenue of $230.7 million, representing 43% year-over-year growth, 44% on a constant currency basis
Full year Total revenue of $330.5 million, representing 22% year-over-year growth, 22% on a constant currency basis
Total ARR of $327.0 million, representing 24% year-over-year growth, 25% adjusted for FX

JERSEY CITY, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“Our fourth quarter was an outstanding close to 2024, and we are pleased with the team’s steady focus and broad-based execution,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Our results this year – as well as our outlook for 2025 – reflect the growing demand from companies around the world for platform solutions that enable them to prepare, secure and optimize their data for AI, as well as our ongoing improvement in effectively and efficiently delivering on that demand. Today, AvePoint stands at the forefront of addressing the pivotal challenges in data security, governance, and resilience, and we are excited for the many opportunities we see in 2025 and beyond to continue driving shareholder value.”

Fourth Quarter 2024 Financial Highlights

Revenue: Total revenue was $89.2 million, up 20% from the fourth quarter of 2023 and up 20% on a constant currency basis. Within total revenue, SaaS revenue was $64.8 million, up 43% from the fourth quarter of 2023 and up 44% on a constant currency basis.
Gross Profit: GAAP gross profit was $67.3 million, compared to $55.0 million for the fourth quarter of 2023. Non-GAAP gross profit was $67.3 million, compared to $56.1 million for the fourth quarter of 2023. Non-GAAP gross margin was 75.5%, compared to 75.2% for the fourth quarter of 2023.
Operating Income/(Loss): GAAP operating income was $4.9 million, compared to $0.9 million for the fourth quarter of 2023. Non-GAAP operating income was $14.5 million, compared to $10.3 million for the fourth quarter of 2023.

Full Year 2024 Financial Highlights

Revenue: Total revenue was $330.5 million, up 22% from the full year 2023 and up 22% on a constant currency basis. Within total revenue, SaaS revenue was $230.7 million, up 43% from the full year 2023 and up 44% on a constant currency basis.
Gross Profit: GAAP gross profit was $248.0 million, compared to $194.4 million for the full year 2023. Non-GAAP gross profit was $250.2 million, compared to $198.5 million for the full year 2023. Non-GAAP gross margin was 75.7%, compared to 73.0% for the full year 2023.
Operating Income/(Loss): GAAP operating income was $7.2 million, compared to a GAAP operating loss of $(15.4) million for the full year 2023. Non-GAAP operating income was $47.6 million, compared to $22.2 million for the full year 2023.
Cash and short-term investments: $290.9 million as of December 31, 2024.
Cash from operations: For the twelve months ended December 31, 2024, the Company generated $88.9 million of cash from operations, compared to $34.7 million in the prior year period.

Fourth Quarter 2024 Key Performance Indicators and Recent Business Highlights

ARR as of December 31, 2024 was $327.0 million, representing growth of 24% year-over-year. Adjusted for FX, ARR grew 25% year-over-year.
Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%.
Introduced first-to-market benchmarking capabilities within AvePoint tyGraph for Microsoft 365 Copilot to provide organizations critical insights into their AI adoption and usage patterns.
Announced the launch of AvePoint’s AI Lab in Singapore, to advance AI-driven research and innovation that will address global industry challenges and embed AI across the AvePoint Confidence Platform.
Named to the inaugural Forbes America’s Best Companies List, which recognizes the top 300 companies in the U.S. across over 60 measures, including financial performance, customer and employee satisfaction, cybersecurity, and more.

Financial Outlook

For the first quarter of 2025, the Company expects:

Total revenues of $87.8 million to $89.8 million, or year-over-year growth of 18% to 21%. On a constant currency basis, the Company expects revenue growth of 19% to 22%.
Non-GAAP operating income of $11.1 million to $12.1 million.

For the full year 2025, the Company expects:

Total ARR of $401.3 million to $407.3 million, or year-over-year growth of 23% to 25%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.
Total revenues of $380.0 million to $388.0 million, or year-over-year growth of 15% to 17%. On a constant currency basis, the Company expects revenue growth of 17% to 19%.
Non-GAAP operating income of $52.3 million to $55.3 million.

Quarterly Conference Call

AvePoint will host a conference call today, February 27, 2025, to review its fourth quarter and full year 2024 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 8306574. Investors can also join by webcast by visiting https://www.avepoint.com/ir/events-and-presentations. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

About AvePoint

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

Non-GAAP Financial Measures and Other Key Metrics

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

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

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

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

Disclosure Information

AvePoint uses its Investor Relations website (https://avepoint.com/ir) as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC’s website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

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

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

AvePoint, Inc. Condensed Consolidated Statements of Income (In thousands, except per share amounts) (Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Revenue:
SaaS	$	64,847		$	45,260		$	230,667		$	160,961
Term license and support		9,432			12,270			44,560			52,744
Services		12,228			13,788			44,036			44,795
Maintenance		2,676			3,306			11,219			13,325
Total revenue		89,183			74,624			330,482			271,825
Cost of revenue:
SaaS		11,405			9,338			41,544			35,924
Term license and support		382			505			1,584			1,946
Services		9,980			9,576			38,757			38,807
Maintenance		154			199			641			783
Total cost of revenue		21,921			19,618			82,526			77,460
Gross profit		67,262			55,006			247,956			194,365
Operating expenses:
Sales and marketing		32,410			29,127			122,869			112,105
General and administrative		17,127			15,592			69,222			61,271
Research and development		12,872			9,409			48,699			36,340
Total operating expenses		62,409			54,128			240,790			209,716
Income (loss) from operations		4,853			878			7,166			(15,351	)
Other expense, net		(23,458	)		(1,687	)		(31,565	)		(3,263	)
Loss before income taxes		(18,605	)		(809	)		(24,399	)		(18,614	)
Income tax (benefit) expense		(1,427	)		(5,245	)		4,743			2,887
Net (loss) income	$	(17,178	)	$	4,436		$	(29,142	)	$	(21,501	)
Net income (loss) attributable to noncontrolling interest		7			167			(52	)		224
Net (loss) income available to common stockholders	$	(17,185	)	$	4,269		$	(29,090	)	$	(21,725	)
Earnings per share:
Basic	$	(0.09	)	$	0.02		$	(0.16	)	$	(0.12	)
Diluted	$	(0.09	)	$	0.02		$	(0.16	)	$	(0.12	)
Weighted average shares outstanding:
Basic		186,605			181,152			183,721			182,257
Diluted		186,605			198,570			183,721			182,257

AvePoint, Inc. Condensed Consolidated Balance Sheets (In thousands, except par value)

	December 31,			December 31,
	2024			2023
Assets
Current assets:
Cash and cash equivalents	$	290,735		$	223,162
Short-term investments		167			3,721
Accounts receivable, net		87,365			85,877
Prepaid expenses and other current assets		16,528			12,824
Total current assets		394,795			325,584
Property and equipment, net		5,289			5,118
Goodwill		17,715			19,156
Intangible assets, net		8,889			10,546
Operating lease right-of-use assets		15,954			13,908
Deferred contract costs		59,838			54,675
Other assets		16,575			13,595
Total assets	$	519,055		$	442,582
Liabilities, mezzanine equity, and stockholders’ equity
Current liabilities:
Accounts payable	$	2,352		$	1,384
Accrued expenses and other current liabilities		76,135			53,766
Current portion of deferred revenue		144,468			121,515
Total current liabilities		222,955			176,665
Long-term operating lease liabilities		9,909			9,383
Long-term portion of deferred revenue		8,840			7,741
Earn-out shares liabilities		—			18,346
Other liabilities		6,403			5,603
Total liabilities		248,107			217,738
Commitments and contingencies
Mezzanine equity
Redeemable noncontrolling interest		—			6,038
Total mezzanine equity		—			6,038
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000 shares authorized, 194,071 and 184,652 shares issued and outstanding as of December 31, 2024 and 2023, respectively		19			18
Additional paid-in capital		779,007			667,881
Accumulated other comprehensive income		576			3,196
Accumulated deficit		(510,448	)		(460,496	)
Noncontrolling interest		1,794			8,207
Total stockholders’ equity		270,948			218,806
Total liabilities, mezzanine equity, and stockholders’ equity	$	519,055		$	442,582

AvePoint, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Year Ended
	December 31,
	2024			2023
Operating activities
Net loss	$	(29,142	)	$	(21,501	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		5,382			4,687
Operating lease right-of-use assets expense		6,270			6,234
Foreign currency remeasurement loss		866			—
Stock-based compensation		39,059			36,048
Deferred income taxes		498			(864	)
Other		(67	)		1,068
Change in value of earn-out and warrant liabilities		37,276			11,454
Changes in operating assets and liabilities:
Accounts receivable		(4,898	)		(19,448	)
Prepaid expenses and other current assets		(3,350	)		(2,773	)
Deferred contract costs and other assets		(8,482	)		(7,687	)
Accounts payable, accrued expenses, operating lease liabilities and other current liabilities		16,046			609
Deferred revenue		29,436			26,867
Net cash provided by operating activities		88,894			34,694
Investing activities
Maturities of investments		5,353			2,620
Purchases of investments		(1,819	)		(3,497	)
Capitalization of internal-use software		(1,211	)		(1,434	)
Purchase of property and equipment		(3,044	)		(2,087	)
Issuance of notes receivables		(1,750	)		(1,250	)
Other investing activities		(130	)		—
Net cash used in investing activities		(2,601	)		(5,648	)
Financing activities
Repurchase of common stock		(33,053	)		(39,036	)
Proceeds from warrant exercises		17,182			—
Proceeds from stock option exercises		11,033			5,569
Redemption of redeemable noncontrolling interest		(6,130	)		—
Purchase of public warrants		(3,991	)		—
Company earn-out shares settled in cash		(572	)		—
Repayments of finance leases		(6	)		(64	)
Payments of debt issuance costs		—			(136	)
Net cash used in financing activities		(15,537	)		(33,667	)
Effect of exchange rates on cash		(3,183	)		595
Net decrease in cash and cash equivalents		67,573			(4,026	)
Cash and cash equivalents at beginning of period		223,162			227,188
Cash and cash equivalents at end of period	$	290,735		$	223,162
Supplemental disclosures of cash flow information
Income taxes paid	$	6,882		$	6,112
Company earn-out shares issuance	$	53,871		$	—

AvePoint, Inc. Non-GAAP Reconciliations (In thousands) (Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
Non-GAAP operating income
GAAP operating income (loss)	$	4,853		$	878		$	7,166		$	(15,351	)
Stock-based compensation expense		9,252			9,073			39,059			36,048
Amortization of acquired intangible assets		356			350			1,420			1,456
Non-GAAP operating income	$	14,461		$	10,301		$	47,645		$	22,153
Non-GAAP operating margin		16.2	%		13.8	%		14.4	%		8.1	%



Non-GAAP gross profit
GAAP gross profit	$	67,262		$	55,006		$	247,956		$	194,365
Stock-based compensation expense		(201	)		869			1,315			3,161
Amortization of acquired intangible assets		239			239			961			964
Non-GAAP gross profit	$	67,300		$	56,114		$	250,232		$	198,490
Non-GAAP gross margin		75.5	%		75.2	%		75.7	%		73.0	%

Non-GAAP sales and marketing
GAAP sales and marketing	$	32,410		$	29,127		$	122,869		$	112,105
Stock-based compensation expense		(2,281	)		(2,251	)		(8,965	)		(9,518	)
Amortization of acquired intangible assets		(117	)		(111	)		(459	)		(492	)
Non-GAAP sales and marketing	$	30,012		$	26,765		$	113,445		$	102,095
Non-GAAP sales and marketing as a % of revenue		33.7	%		35.9	%		34.3	%		37.6	%

Non-GAAP general and administrative
GAAP general and administrative	$	17,127		$	15,592		$	69,222		$	61,271
Stock-based compensation expense		(5,032	)		(4,787	)		(20,483	)		(19,338	)
Non-GAAP general and administrative	$	12,095		$	10,805		$	48,739		$	41,933
Non-GAAP general and administrative as a % of revenue		13.6	%		14.5	%		14.7	%		15.4	%

Non-GAAP research and development
GAAP research and development	$	12,872		$	9,409		$	48,699		$	36,340
Stock-based compensation expense		(2,140	)		(1,166	)		(8,296	)		(4,031	)
Non-GAAP research and development	$	10,732		$	8,243		$	40,403		$	32,309
Non-GAAP research and development as a % of revenue		12.0	%		11.0	%		12.2	%		11.9	%

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

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter Revenue Increased 30% to a Record $19.6 Million, Producing $6.7 Million of Cash Flow from Operations

Full Year 2024 Revenue Increased 25% to $75.2 Million, Generating GAAP EPS of $0.50

BOCA RATON, Fla., Feb. 27, 2025 (GLOBE NEWSWIRE) — Red Violet, Inc. (NASDAQ: RDVT), a leading analytics and information solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2024.

“We are proud to announce record-breaking financial results for 2024, including record revenue in the fourth quarter, which marks a significant achievement as we defied the historic seasonality we typically experience during that quarter,” stated Derek Dubner, red violet’s CEO. “The market is recognizing what we have known all along—we have built the leading technology platform with superior solutions and unique capabilities that outperform even our larger competitors. Our ability to consistently deliver value to our customers fuels our exceptional growth and profitability, and we remain committed to pushing the boundaries of innovation and penetrating our markets to further expand our leadership. With strong momentum, we are well-positioned for 2025 and beyond.”

Fourth Quarter Financial Results

For the three months ended December 31, 2024 as compared to the three months ended December 31, 2023:

Total revenue increased 30% to $19.6 million.
Gross profit increased 43% to $13.7 million. Gross margin increased to 70% from 64%.
Adjusted gross profit increased 37% to $16.1 million. Adjusted gross margin increased to 82% from 78%.
Net income was $0.9 million compared to a net loss of $1.1 million, which resulted in earnings of $0.06 per basic and diluted share. Net income margin was 4% compared to a net loss margin of 7%.
Adjusted EBITDA increased 68% to $4.5 million. Adjusted EBITDA margin increased to 23% from 18%.
Adjusted net income increased 390% to $1.3 million, which resulted in adjusted earnings of $0.10 and $0.09 per basic and diluted share, respectively.
Cash from operating activities increased 59% to $6.7 million.
Cash and cash equivalents were $36.5 million as of December 31, 2024.

Full Year Financial Results

For the year ended December 31, 2024 as compared to the year ended December 31, 2023:

Total revenue increased 25% to $75.2 million.
Gross profit increased 33% to $51.8 million. Gross margin increased to 69% from 65%.
Adjusted gross profit increased 30% to $61.2 million. Adjusted gross margin increased to 81% from 78%.
Net income was $7.0 million compared to $13.5 million (inclusive of a one-time deferred income tax benefit of $10.3 million in 2023), which resulted in earnings of $0.51 and $0.50 per basic and diluted share, respectively. Net income margin decreased to 9% from 22%.
Adjusted EBITDA increased 44% to $23.6 million. Adjusted EBITDA margin increased to 31% from 27%.
Adjusted net income increased 42% to $11.5 million, which resulted in adjusted earnings of $0.83 and $0.82 per basic and diluted share, respectively.
Cash from operating activities increased 59% to $24.0 million.

Fourth Quarter and Recent Business Highlights

Added 183 customers to IDI™ during the fourth quarter, ending the year with 8,926 customers.
Added 18,451 users to FOREWARN^® during the fourth quarter, ending the year with 303,418 users. Over 525 REALTOR^® Associations are now contracted to use FOREWARN.
Continued growth in the onboarding of higher-tier customers, with 96 customers contributing over $100,000 of revenue in 2024 compared to 72 customers in 2023.
Demonstrating strong operational performance, financial resilience, and a disciplined approach to capital allocation focused on shareholder value, we repurchased 292,744 shares of common stock in 2024 at an average price of $19.81 per share. Additionally, in the fourth quarter, we announced a special cash dividend of $0.30 per share payable February 14, 2025, all while continuing ongoing investments in innovation, infrastructure, and market expansion.

Conference Call

In conjunction with this release, red violet will host a conference call and webcast today at 4:30pm ET to discuss its quarterly and full year results and provide a business update. Please click here to pre-register for the conference call and obtain your dial in number and passcode. To access the live audio webcast, visit the Investors section of the red violet website at www.redviolet.com. Please login at least 15 minutes prior to the start of the call to ensure adequate time for any downloads that may be required. Following the completion of the conference call, an archived webcast of the conference call will be available on the Investors section of the red violet website at www.redviolet.com.

About red violet^®

At red violet, we build proprietary technologies and apply analytical capabilities to deliver identity intelligence. Our technology powers critical solutions, which empower organizations to operate with confidence. Our solutions enable the real-time identification and location of people, businesses, assets and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Our intelligent platform, CORE™, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. Our solutions are used today to enable frictionless commerce, to ensure safety, and to reduce fraud and the concomitant expense borne by society. For more information, please visit www.redviolet.com.

Company Contact:
Camilo Ramirez
Red Violet, Inc.
561-757-4500
ir@redviolet.com

Investor Relations Contact:
Steven Hooser
Three Part Advisors
214-872-2710
ir@redviolet.com

Use of Non-GAAP Financial Measures

Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and free cash flow (“FCF”). Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable financial measure based on US GAAP, excluding interest income, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income (loss), the most directly comparable financial measure based on US GAAP, excluding share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and discrete tax items, and including the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements,” as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as “expects,” “plans,” “projects,” “will,” “may,” “anticipate,” “believes,” “should,” “intends,” “estimates,” and other words of similar meaning. Such forward looking statements are subject to risks and uncertainties that are often difficult to predict, are beyond our control and which may cause results to differ materially from expectations, including whether we will continue pushing the boundaries of innovation and penetrating our markets to further expand our leadership and whether we are well-positioned for 2025 and beyond. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed above together with the additional factors under the heading “Forward-Looking Statements” and “Risk Factors” in red violet’s Form 10-K for the year ended December 31, 2023 filed on March 7, 2024, as may be supplemented or amended by the Company’s other SEC filings, including the Form 10-K for year ended December 31, 2024 expected to be filed today. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.


RED VIOLET, INC. CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)

	December 31, 2024			December 31, 2023
ASSETS:
Current assets:
Cash and cash equivalents	$	36,504		$	32,032
Accounts receivable, net of allowance for doubtful accounts of $188 and $159 as of December 31, 2024 and 2023, respectively		8,061			7,135
Prepaid expenses and other current assets		1,627			1,113
Total current assets		46,192			40,280
Property and equipment, net		545			592
Intangible assets, net		35,997			34,403
Goodwill		5,227			5,227
Right-of-use assets		1,901			2,457
Deferred tax assets		7,496			9,514
Other noncurrent assets		1,173			517
Total assets	$	98,531		$	92,990
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current liabilities:
Accounts payable	$	2,127		$	1,631
Accrued expenses and other current liabilities		2,881			1,989
Current portion of operating lease liabilities		406			569
Deferred revenue		712			690
Dividend payable		4,181			–
Total current liabilities		10,307			4,879
Noncurrent operating lease liabilities		1,592			1,999
Total liabilities		11,899			6,878
Shareholders’ equity:
Preferred stock—$0.001 par value, 10,000,000 shares authorized, and 0 shares issued and outstanding, as of December 31, 2024 and 2023		–			–
Common stock—$0.001 par value, 200,000,000 shares authorized, 13,936,329 and 13,980,274 shares issued, and 13,936,329 and 13,970,846 shares outstanding, as of December 31, 2024 and 2023		14			14
Treasury stock, at cost, 0 and 9,428 shares as of December 31, 2024 and 2023		–			(188	)
Additional paid-in capital		87,488			94,159
Accumulated deficit		(870	)		(7,873	)
Total shareholders’ equity		86,632			86,112
Total liabilities and shareholders’ equity	$	98,531		$	92,990

RED VIOLET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except share data)

	Year Ended December 31,
	2024		2023
Revenue	$	75,189	$	60,204
Costs and expenses⁽¹⁾:
Cost of revenue (exclusive of depreciation and amortization)		13,997		13,069
Sales and marketing expenses		17,835		13,833
General and administrative expenses		25,875		22,446
Depreciation and amortization		9,562		8,352
Total costs and expenses		67,269		57,700
Income from operations		7,920		2,504
Interest income		1,400		1,334
Income before income taxes		9,320		3,838
Income tax expense (benefit)		2,317		(9,691	)
Net income	$	7,003	$	13,529
Earnings per share:
Basic	$	0.51	$	0.97
Diluted	$	0.50	$	0.96
Weighted average shares outstanding:
Basic		13,864,797		13,974,125
Diluted		14,125,825		14,134,021


(1) Share-based compensation expense in each category:
Sales and marketing expenses	$	606	$	462
General and administrative expenses		5,342		4,924
Total	$	5,948	$	5,386

RED VIOLET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands)

	Year Ended December 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	7,003		$	13,529
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		9,562			8,352
Share-based compensation expense		5,948			5,386
Write-off of long-lived assets		85			6
Provision for bad debts		342			1,088
Noncash lease expenses		556			576
Deferred income tax expense (benefit)		2,018			(9,801	)
Changes in assets and liabilities:
Accounts receivable		(1,268	)		(2,688	)
Prepaid expenses and other current assets		(514	)		(342	)
Other noncurrent assets		(656	)		84
Accounts payable		496			(598	)
Accrued expenses and other current liabilities		936			100
Deferred revenue		22			20
Operating lease liabilities		(570	)		(641	)
Net cash provided by operating activities		23,960			15,071
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(169	)		(122	)
Capitalized costs included in intangible assets		(9,398	)		(9,024	)
Net cash used in investing activities		(9,567	)		(9,146	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Taxes paid related to net share settlement of vesting of restricted stock units		(4,068	)		(1,992	)
Repurchases of common stock		(5,853	)		(3,711	)
Net cash used in financing activities		(9,921	)		(5,703	)
Net increase in cash and cash equivalents	$	4,472		$	222
Cash and cash equivalents at beginning of period		32,032			31,810
Cash and cash equivalents at end of period	$	36,504		$	32,032
SUPPLEMENTAL DISCLOSURE INFORMATION:
Cash paid for interest	$	–		$	–
Cash paid for income taxes	$	607		$	82
Share-based compensation capitalized in intangible assets	$	1,627		$	1,851
Retirement of treasury stock	$	10,065		$	5,559
Right-of -use assets obtained in exchange of operating lease liabilities	$	–		$	1,919
Operating lease liabilities arising from obtaining right-of-use assets	$	–		$	1,919
Dividend declared not yet paid	$	4,181		$	–

Use and Reconciliation of Non-GAAP Financial Measures

Management evaluates the financial performance of our business on a variety of key indicators, including non-GAAP metrics of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF. Adjusted EBITDA is a non-GAAP financial measure equal to net income (loss), the most directly comparable financial measure based on US GAAP, excluding interest income, income tax (benefit) expense, depreciation and amortization, share-based compensation expense, litigation costs, and write-off of long-lived assets and others. We define adjusted EBITDA margin as adjusted EBITDA as a percentage of revenue. Adjusted net income is a non-GAAP financial measure equal to net income (loss), the most directly comparable financial measure based on US GAAP, excluding share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and discrete tax items, and including the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. We define adjusted gross profit as revenue less cost of revenue (exclusive of depreciation and amortization), and adjusted gross margin as adjusted gross profit as a percentage of revenue. We define FCF as net cash provided by operating activities reduced by purchase of property and equipment and capitalized costs included in intangible assets.

The following is a reconciliation of net income (loss), the most directly comparable US GAAP financial measure, to adjusted EBITDA:

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)	2024			2023			2024			2023
Net income (loss)	$	863		$	(1,070	)	$	7,003		$	13,529
Interest income		(368	)		(387	)		(1,400	)		(1,334	)
Income tax (benefit) expense		(124	)		562			2,317			(9,691	)
Depreciation and amortization		2,481			2,211			9,562			8,352
Share-based compensation expense		1,496			1,328			5,948			5,386
Litigation costs		117			–			124			49
Write-off of long-lived assets and others		3			19			92			77
Adjusted EBITDA	$	4,468		$	2,663		$	23,646		$	16,368
Revenue	$	19,565		$	15,061		$	75,189		$	60,204

Net income (loss) margin		4	%		(7	%)		9	%		22	%
Adjusted EBITDA margin		23	%		18	%		31	%		27	%

The following is a reconciliation of net income (loss), the most directly comparable US GAAP financial measure, to adjusted net income:

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands, except share data)	2024			2023			2024			2023
Net income (loss)	$	863		$	(1,070	)	$	7,003		$	13,529
Share-based compensation expense		1,496			1,328			5,948			5,386
Amortization of share-based compensation capitalized in intangible assets		299			263			1,152			969
Discrete tax items⁽¹⁾		–			–			–			(10,272	)
Tax effect of adjustments⁽²⁾		(1,336	)		(251	)		(2,587	)		(1,526	)
Adjusted net income	$	1,322		$	270		$	11,516		$	8,086
Earnings per share:
Basic	$	0.06		$	(0.08	)	$	0.51		$	0.97
Diluted	$	0.06		$	(0.08	)	$	0.50		$	0.96
Adjusted earnings per share:
Basic	$	0.10		$	0.02		$	0.83		$	0.58
Diluted	$	0.09		$	0.02		$	0.82		$	0.57
Weighted average shares outstanding:
Basic		13,900,091			13,985,426			13,864,797			13,974,125
Diluted⁽³⁾		14,366,545			14,307,797			14,125,825			14,134,021

(1)	During the three months ended September 30, 2023, a one-time income tax benefit of $10.3 million was recognized as a result of the release of the valuation allowance previously recorded on our deferred tax asset and cumulative research and development tax credit, which were excluded to calculate the adjusted net income.

(2)	The tax effect of adjustments is calculated using the expected federal and state statutory tax rate. The expected federal and state income tax rate was approximately 26.00% for the three and twelve months ended December 31, 2024, and 25.75% for the three and twelve months ended December 31, 2023.

(3)	For the three months ended December 31, 2023, diluted weighted average shares outstanding for adjusted diluted earnings per share are calculated by the inclusion of unvested RSUs, which were not included in US GAAP diluted weighted average shares outstanding due to the Company’s net loss position for such period.

The following is a reconciliation of gross profit, the most directly comparable US GAAP financial measure, to adjusted gross profit:

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)	2024			2023			2024			2023
Revenue	$	19,565		$	15,061		$	75,189		$	60,204
Cost of revenue (exclusive of depreciation and amortization)		(3,472	)		(3,337	)		(13,997	)		(13,069	)
Depreciation and amortization of intangible assets		(2,431	)		(2,154	)		(9,349	)		(8,119	)
Gross profit		13,662			9,570			51,843			39,016
Depreciation and amortization of intangible assets		2,431			2,154			9,349			8,119
Adjusted gross profit	$	16,093		$	11,724		$	61,192		$	47,135

Gross margin		70	%		64	%		69	%		65	%
Adjusted gross margin		82	%		78	%		81	%		78	%

The following is a reconciliation of net cash provided by operating activities, the most directly comparable US GAAP measure, to FCF:

	Three Months Ended December 31,						Year Ended December 31,
(Dollars in thousands)	2024			2023			2024			2023
Net cash provided by operating activities	$	6,691		$	4,204		$	23,960		$	15,071
Less:
Purchase of property and equipment		(17	)		(24	)		(169	)		(122	)
Capitalized costs included in intangible assets		(2,280	)		(2,103	)		(9,398	)		(9,024	)
Free cash flow	$	4,394		$	2,077		$	14,393		$	5,925

In order to assist readers of our consolidated financial statements in understanding the operating results that management uses to evaluate the business and for financial planning purposes, we present non-GAAP measures of adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF as supplemental measures of our operating performance. We believe they provide useful information to our investors as they eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. In addition, we use them as an integral part of our internal reporting to measure the performance and operating strength of our business.

We believe adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are relevant and provide useful information frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours and are indicators of the operational strength of our business. We believe adjusted EBITDA eliminates the uneven effect of considerable amounts of non-cash depreciation and amortization, share-based compensation expense and the impact of other non-recurring items, providing useful comparisons versus prior periods or forecasts. Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of revenue. We believe adjusted net income provides additional means of evaluating period-over-period operating performance by eliminating certain non-cash expenses and other items that might otherwise make comparisons of our ongoing business with prior periods more difficult and obscure trends in ongoing operations. Adjusted net income is a non-GAAP financial measure equal to net income (loss), excluding share-based compensation expense, amortization of share-based compensation capitalized in intangible assets, and discrete tax items, and including the tax effect of adjustments. We define adjusted earnings per share as adjusted net income divided by the weighted average shares outstanding. Our adjusted gross profit is a measure used by management in evaluating the business’s current operating performance by excluding the impact of prior historical costs of assets that are expensed systematically and allocated over the estimated useful lives of the assets, which may not be indicative of the current operating activity. Our adjusted gross profit is calculated by using revenue, less cost of revenue (exclusive of depreciation and amortization). We believe adjusted gross profit provides useful information to our investors by eliminating the impact of non-cash depreciation and amortization, and specifically the amortization of software developed for internal use, providing a baseline of our core operating results that allow for analyzing trends in our underlying business consistently over multiple periods. Adjusted gross margin is calculated as adjusted gross profit as a percentage of revenue. We believe FCF is an important liquidity measure of the cash that is available, after capital expenditures, for operational expenses and investment in our business. FCF is a measure used by management to understand and evaluate the business’s operating performance and trends over time. FCF is calculated by using net cash provided by operating activities, less purchase of property and equipment and capitalized costs included in intangible assets.

Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF are not intended to be performance measures that should be regarded as an alternative to, or more meaningful than, financial measures presented in accordance with US GAAP. In addition, FCF is not intended to represent our residual cash flow available for discretionary expenses and is not necessarily a measure of our ability to fund our cash needs. The way we measure adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted earnings per share, adjusted gross profit, adjusted gross margin, and FCF may not be comparable to similarly titled measures presented by other companies, and may not be identical to corresponding measures used in our various agreements.

SUPPLEMENTAL METRICS

The following metrics are intended as a supplement to the financial statements found in this release and other information furnished or filed with the SEC. These supplemental metrics are not necessarily derived from any underlying financial statement amounts. We believe these supplemental metrics help investors understand trends within our business and evaluate the performance of such trends quickly and effectively. In the event of discrepancies between amounts in these tables and the Company’s historical disclosures or financial statements, readers should rely on the Company’s filings with the SEC and financial statements in the Company’s most recent earnings release.

We intend to periodically review and refine the definition, methodology and appropriateness of each of these supplemental metrics. As a result, metrics are subject to removal and/or changes, and such changes could be material.


	(Unaudited)
(Dollars in thousands)	Q1’23			Q2’23			Q3’23			Q4’23			Q1’24			Q2’24			Q3’24			Q4’24
Customer metrics
IDI – billable customers⁽¹⁾		7,256			7,497			7,769			7,875			8,241			8,477			8,743			8,926
FOREWARN – users⁽²⁾		131,348			146,537			168,356			185,380			236,639			263,876			284,967			303,418
Revenue metrics
Contractual revenue %⁽³⁾		75	%		79	%		79	%		82	%		78	%		74	%		77	%		77	%
Gross revenue retention %⁽⁴⁾		94	%		94	%		94	%		92	%		93	%		94	%		94	%		96	%
Other metrics
Employees – sales and marketing	61			63			65			71			76			86			93			95
Employees – support	10			9			9			9			10			10			11			11
Employees – infrastructure	27			26			27			27			29			27			29			28
Employees – engineering	47			47			47			51			51			56			58			57
Employees – administration	25			25			25			25			25			25			26			25

(1)	We define a billable customer of IDI as a single entity that generated revenue in the last three months of the period. Billable customers are typically corporate organizations. In most cases, corporate organizations will have multiple users and/or departments purchasing our solutions, however, we count the entire organization as a discrete customer.

(2)	We define a user of FOREWARN as a unique person that has a subscription to use the FOREWARN service as of the last day of the period. A unique person can only have one user account.

(3)	Contractual revenue % represents revenue generated from customers pursuant to pricing contracts containing a monthly fee and any additional overage divided by total revenue. Pricing contracts are generally annual contracts or longer, with auto renewal.

(4)	Gross revenue retention is defined as the revenue retained from existing customers, net of reinstated revenue, and excluding expansion revenue. Revenue is measured once a customer has generated revenue for six consecutive months. Revenue is considered lost when all revenue from a customer ceases for three consecutive months; revenue generated by a customer after the three-month loss period is defined as reinstated revenue. Gross revenue retention percentage is calculated on a trailing twelve-month basis. The numerator of which is revenue lost during the period due to attrition, net of reinstated revenue, and the denominator of which is total revenue based on an average of total revenue at the beginning of each month during the period, with the quotient subtracted from one. Our gross revenue retention calculation excludes revenue from idiVERIFIED, which is purely transactional and currently represents less than 3% of total revenue.

MIL-OSI: PubMatic Announces Fourth Quarter and Fiscal Year Ended 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

FY Revenue of $291.3 million, up 9% over 2023;

Delivered FY 2024 net income of $12.5 million or 4% margin;

FY adjusted EBITDA increased 23% over 2023 and was $92.3 million or 32% margin;

Revenue in Q4 from CTV more than doubled year over year and represented 20% of total revenue;

Supply Path Optimization represented 53% of total activity in 2024;

Repurchased 4.3 million shares in 2024, representing 7.9% of fully diluted shares as of December 31, 2024

NO-HEADQUARTERS/REDWOOD CITY, Calif., Feb. 27, 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 fourth quarter and fiscal year ended December 31, 2024.

“Revenue growth in the year more than doubled over 2023, driven by strength in CTV, emerging revenue streams, and marquee customers choosing PubMatic to build and scale their ad businesses. Our revenue mix is evolving; in the fourth quarter, CTV more than doubled to 20% of total revenue. These achievements mark an inflection point in our underlying business that highlights critical scale on our platform and a significant shift in ad buying toward channels with the highest consumer engagement such as CTV, mobile app and commerce media,” said Rajeev Goel, co-founder and CEO at PubMatic. “Today, our omnichannel platform serves publishers, media buyers, commerce media networks, and curation/data providers, all of which are turning to sell side technology for critical end-to-end solutions needed to build their ad businesses. As we look to 2025, we expect accelerated growth in our underlying business as ad buyers seek premium, brand safe, curated inventory in the open internet.”

Fiscal Year 2024 Financial Highlights

Revenue for the full year 2024 was $291.3 million, an increase of 9% over $267.0 million in 2023;
Gross profit was $190.2 million, or 65% margin, an improvement of 250 basis points over 2023;
Revenue from omnichannel video in 2024 grew 37% over the same period last year;
Net dollar-based retention¹ was 107% for the year ended December 31, 2024;
GAAP net income was $12.5 million with a margin of 4%, or $0.23 per diluted share in 2024, an increase over net income² of $8.9 million with a margin of 3%, or $0.16 per diluted share in 2023;
Adjusted EBITDA was $92.3 million, or 32% margin, an increase over adjusted EBITDA of $75.3 million, or 28% margin, in 2023;
Non-GAAP net income was $42.5 million, or $0.78 per non-GAAP diluted share in 2024, an increase over non-GAAP net income of $32.0 million, or $0.57 per non-GAAP diluted share in 2023;
Net cash provided by operating activities in 2024 was $73.4 million, compared to $81.1 million in the full year 2023;
Generated free cash flow of $34.9 million in 2024, down 34% over 2023;
Ended 2024 with total cash, cash equivalents, and marketable securities of $140.6 million with no debt, a decrease of 20% over the full year 2023; and
Through December 31, 2024, used $134.6 million in cash to repurchase 8.3 million shares of Class A common stock with $40.4 million available from the 2024 repurchase program.

Fourth Quarter 2024 Financial Highlights

Revenue in the fourth quarter of 2024 was $85.5 million, an increase of 1% over $84.6 million in the same period of 2023;
GAAP net income was $13.9 million with a margin of 16%, or $0.26 per diluted share in the fourth quarter, compared to GAAP net income of $18.7 million with a margin of 22%, or $0.34 per diluted share in the same period of 2023;
Adjusted EBITDA was $37.6 million, or 44% margin, compared to $38.9 million, or 46% margin in the same period of 2023;
Non-GAAP net income was $21.4 million, or $0.41 per non-GAAP diluted share in the fourth quarter, compared to non-GAAP net income of $24.4 million, or $0.45 per non-GAAP diluted share in the same period of 2023; and
Net cash provided by operating activities was $18.0 million, compared to $28.7 million in the same period of 2023.

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.

“In 2024, we delivered record share of revenue for CTV, mobile app and emerging revenues, and achieved an all-time high of Supply Path Optimization activity. We also significantly expanded our margins, once again, demonstrating the strength of our durable model and our strategic commitment to steward both operational excellence and targeted investments for growth,” said Steve Pantelick, CFO at PubMatic. “In Q4, strong growth in the underlying business helped offset softer spending from the large DSP buyer we previously called out mid year. Going forward, we are taking a conservative approach as it relates to this buyer, and expect total revenues to grow year over year in the second half of the year once we lap this impact at the end of Q2 2025. Our underlying business, which excludes revenue from this DSP and political, is targeted to grow 15%+ and represent over two thirds of total company revenues in 2025.”

Business Highlights

Omnichannel platform drives revenue in key secular growth areas

Full year revenue from high value formats and channels, mobile and omnichannel video³, grew 17% over 2023.
In Q4, revenue from omnichannel video, which includes CTV, grew 37% year-over-year.
CTV reached scale, and was 20% of revenue in the fourth quarter, driven by growing inventory supply, SPO relationships, and strength in political advertising.
Revenue from mobile app grew 16% over 2023 as we scaled to over 900 mobile app publishers.

High consumer engagement channels fuel ad demand and sell-side data curation

New and expanded partnerships announced in 2024 with premium streaming brands including Roku, Dish Media, Disney+ Hotstar, TCL and Xumo. We now work with 80% of the top 30 streaming publishers.
The number of Activate customers grew nearly 6x over 2023.
Supply Path Optimization represented 53% of total activity on our platform in 2024, up from 45% in 2023.
Connect drives more performant, targeted ad campaigns across the open internet, offering 190 data sets to ad buyers on PubMatic. Connect is a leading platform for data providers and curators to integrate first-party data, package inventory, sell to, and optimize outcomes for ad buyers.

Focused investments drive long-term growth opportunities

More than doubled total addressable market to over $120 billion via products that address four key stakeholders across the digital advertising ecosystem: publishers, media buyers, curators and data providers, and commerce media networks.
Contribution from emerging revenue streams, which expand beyond ad monetization services, doubled from 2023.

Recent product launches

Launched CTV Marketplaces, offering ad buyers pre-curated CTV inventory available only on PubMatic, built directly from our sell side technology. CTV Marketplaces allows publishers to unlock more value from their inventory and provides ad buyers off-the-shelf, easy to buy premium content and targeted audiences, including curated live sports inventory.
Launched Creative Category Manager, a generative AI solution that scans and classifies each video ad creative on granular criteria. First used to unlock millions of dollars in political ad spend, it drove significant CTV revenue. This gen AI solution will soon expand to other use cases and verticals.
Launched PubMatic Assistant, a gen AI powered reporting tool that allows publishers to request any report or data using simple plain language text queries. As a result, publishers can streamline analytics, enhance productivity and unlock new growth opportunities by uncovering insights in big data. This powerful tool removes barriers to adoption and drives increased platform usage.

2024 operating priorities drove profitable growth

Aligned with our growth investments, increased global headcount in 2024 by 11% over 2023, adding new team members across product management, engineering and go-to-market teams to accelerate long-term revenue growth.
Infrastructure optimization initiatives and investments drove nearly 263 trillion impressions processed in 2024, an increase of 25% over 2023.
Cost of revenue per million impressions processed decreased 18% on a trailing twelve month period, as compared to the prior period.
Scaled adoption of generative AI drove increased engineering productivity by 15%+ which led to faster software development, testing and release processes.

Financial Outlook

Q1 outlook includes the continued headwind from one of our top DSP buyers that revised its auction approach in late May 2024. Adjusted EBITDA expectation assumes a negative FX impact predominately from Euro and Pound Sterling expenses. It also 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 first quarter of 2025, we expect the following:

Revenue to be in the range of $61 million to $63 million.
Adjusted EBITDA to be in the range of $5 million to $7 million.

Although we provide guidance for adjusted EBITDA and free cash flow, 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 Thursday, February 27, 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, net cash provided by operating activities, and net income, we believe that adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP earnings per share and free cash flow, each a non-GAAP measure, are useful in evaluating our operating performance. We define adjusted EBITDA as net income adjusted for stock-based compensation expense, depreciation and amortization, unrealized loss and impairment of equity investment, interest income, acquisition-related and other expenses, and provision for income taxes. Adjusted EBITDA margin represents adjusted EBITDA calculated as a percentage of revenue. We define non-GAAP net income as net income adjusted for unrealized loss on equity investments, stock-based compensation expense, acquisition-related and other expenses, 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 and net income, we use adjusted EBITDA and non-GAAP net income 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 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 provision for 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 and non-GAAP net income in conjunction with GAAP financial measures for planning purposes, including the preparation of our annual operating budget, as a measure of operating performance 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 does not include: (a) unrealized losses resulting from our equity investment; (b) the potentially dilutive impact of stock-based compensation; (c) income tax effects for stock-based compensation and unrealized losses from our equity investment; or (d) acquisition-related and other expenses.

Because of these and other limitations, you should consider adjusted EBITDA and non-GAAP net income along with other GAAP-based financial performance measures, including net income 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 first quarter of 2025, our expectations regarding our adjusted EBITDA, free cash flow, capital expenditures, future hiring, future market growth, our long-term revenue growth, target revenue 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 resumption of conflict between Israel and Palestine, and the related measures taken in response by the global community; the impacts of inflation as well as fiscal tightening and volatile interest rates; public health crises, including the resulting global economic 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 From 10-Q, copies of are available on our investor relations website at https://investors.pubmatic.com and on the SEC website at www.sec.gov. All information in this press release is as of February 27, 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)

	December 31, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	100,452		$	78,509
Marketable securities		40,135			96,835
Accounts receivable, net		424,814			375,468
Prepaid expenses and other current assets		10,145			11,143
Total current assets		575,546			561,955
Property, equipment and software, net		58,522			60,729
Operating lease right-of-use assets		44,402			21,102
Acquisition-related intangible assets, net		4,284			5,864
Goodwill		29,577			29,577
Deferred tax assets		24,864			13,880
Other assets, non-current		2,324			2,136
TOTAL ASSETS	$	739,519		$	695,243
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	386,602		$	347,673
Accrued liabilities		26,365			25,684
Operating lease liabilities, current		5,843			6,236
Total current liabilities		418,810			379,593
Operating lease liabilities, non-current		39,538			15,607
Other liabilities, non-current		3,908			3,844
TOTAL LIABILITIES		462,256			399,044
Stockholders’ Equity
Common stock		6			6
Treasury stock		(146,796	)		(71,103	)
Additional paid-in capital		275,304			230,419
Accumulated other comprehensive loss		(636	)		(4	)
Retained earnings		149,385			136,881
TOTAL STOCKHOLDERS’ EQUITY		277,263			296,199
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	739,519		$	695,243


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

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Revenue	$	85,502	$	84,600	$	291,256	$	267,014
Cost of revenue⁽¹⁾		24,935		24,208		101,027		99,229
Gross profit		60,567		60,392		190,229		167,785
Operating expenses:⁽¹⁾
Technology and development		7,831		6,846		33,263		26,727
Sales and marketing		23,763		20,353		95,369		82,803
General and administrative⁽²⁾		14,171		12,780		57,670		56,219
Total operating expenses		45,765		39,979		186,302		165,749
Operating income		14,802		20,413		3,927		2,036
Total other income, net		3,618		2,632		13,847		8,469
Income before income taxes		18,420		23,045		17,774		10,505
Provision for income taxes		4,521		4,343		5,270		1,624
Net income	$	13,899	$	18,702	$	12,504	$	8,881
Net income per share attributable to common stockholders:
Basic	$	0.29	$	0.37	$	0.25	$	0.17
Diluted	$	0.26	$	0.34	$	0.23	$	0.16
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		47,993		50,659		49,213		51,760
Diluted		52,623		54,940		54,294		56,027

⁽¹⁾Stock-based compensation expense includes the following:
STOCK BASED COMPENSATION EXPENSE (In thousands) (unaudited)

	Three Months Ended December 31,				Year Ended December 31,
		2024		2023		2024		2023
Cost of revenue	$	438	$	383	$	1,855	$	1,472
Technology and development		1,625		1,137		6,313		4,346
Sales and marketing		3,247		2,589		13,407		10,462
General and administrative		4,099		3,228		16,101		12,582
Total stock-based compensation	$	9,409	$	7,337	$	37,676	$	28,862

⁽²⁾On June 30, 2023, a Demand Side Platform buyer of our platform filed for Chapter 11 bankruptcy. As a result of this bankruptcy, we recorded incremental bad debt expense of $5.7 million which is reflected in our GAAP net income and adjusted EBITDA results for the year ended December 31, 2023.


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

	December 31,
		2024			2023
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income	$	12,504		$	8,881
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		45,352			44,770
Stock-based compensation		37,676			28,862
Provision for doubtful accounts		—			5,675
Deferred income taxes		(10,984	)		(13,406	)
Accretion of discount on marketable securities		(4,117	)		(4,093	)
Non-cash lease expense		6,801			6,145
Other		(25	)		45
Changes in operating assets and liabilities:
Accounts receivable		(49,345	)		(75,716	)
Prepaid expenses and other current assets		(5,826	)		3,918
Accounts payable		38,096			79,687
Accrued liabilities		9,627			3,035
Operating lease liabilities		(6,531	)		(5,789	)
Other liabilities, non-current		197			(893	)
Net cash provided by operating activities		73,425			81,121
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of and deposits on property and equipment		(17,592	)		(10,601	)
Capitalized software development costs		(20,936	)		(17,687	)
Purchases of marketable securities		(142,016	)		(140,603	)
Proceeds from sales of marketable securities		—			18,873
Proceeds from maturities of marketable securities		202,858			111,000
Net cash provided by (used in) investing activities		22,314			(39,018	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of business combination indemnification claims holdback		(2,148	)		—
Proceeds from issuance of common stock for employee stock purchase plan		2,368			1,869
Proceeds from exercise of stock options		1,765			1,549
Principal payments on finance lease obligations		(131	)		(126	)
Payments to acquire treasury stock		(75,332	)		(59,268	)
Net cash used in financing activities		(73,478	)		(55,976	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		22,261			(13,873	)
Effect of foreign currency on cash		(318	)		—
CASH AND CASH EQUIVALENTS – Beginning of year		78,509			92,382
CASH AND CASH EQUIVALENTS – End of year	$	100,452		$	78,509


RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDA AND NON-GAAP NET INCOME (In thousands, except per share amounts) (unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of net income:
Net income	$	13,899		$	18,702		$	12,504		$	8,881
Add back (deduct):
Stock-based compensation		9,409			7,337			37,676			28,862
Depreciation and amortization		11,421			11,039			45,352			44,770
Interest income		(1,604	)		(2,515	)		(8,477	)		(8,828	)
Provision for income taxes		4,521			4,343			5,270			1,624
Adjusted EBITDA¹	$	37,646		$	38,906		$	92,325		$	75,309

Revenue	$	85,502		$	84,600		$	291,256		$	267,014
Adjusted EBITDA margin		44	%		46	%		32	%		28	%

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of net income per share:
Net income	$	13,899		$	18,702		$	12,504		$	8,881
Add back (deduct):
Stock-based compensation		9,409			7,337			37,676			28,862
Adjustment for income taxes		(1,865	)		(1,590	)		(7,728	)		(5,695	)
Non-GAAP net income¹	$	21,443		$	24,449		$	42,452		$	32,048
GAAP diluted EPS	$	0.26		$	0.34		$	0.23		$	0.16
Non-GAAP diluted EPS	$	0.41		$	0.45		$	0.78		$	0.57
GAAP weighted average shares outstanding—diluted		52,623			54,940			54,294			56,027
Non-GAAP weighted average shares outstanding—diluted		52,623			54,940			54,294			56,027


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

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Reconciliation of cash provided by operating activities:
Net cash provided by operating activities	$	18,048		$	28,674		$	73,425		$	81,121
Less: Purchases of property and equipment		(4,324	)		(5,177	)		(17,592	)		(10,601	)
Less: Capitalized software development costs		(4,868	)		(3,962	)		(20,936	)		(17,687	)
Free cash flow	$	8,856		$	19,535		$	34,897		$	52,833

¹ Net income, Adjusted EBITDA, and Non-GAAP net income for the twelve months ended December 31, 2024 include other income of $4.0 million related to our efforts to build and test integrations with the Google Privacy Sandbox.

¹ Net dollar-based retention is calculated by starting with the revenue from publishers in the trailing twelve months ended December 31, 2023 (“Prior Period Revenue”). We then calculate the revenue from these same publishers in the trailing twelve months ended December 31, 2024 (“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.
² Fiscal year 2023 GAAP net income includes approximately $5.7 million of incremental bad debt expense related to the bankruptcy of a Demand Side Platform buyer of our platform.
³ Omnichannel video spans across desktop, mobile and CTV devices.

MIL-OSI: American Coastal Insurance Corporation Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2024

Source: GlobeNewswire (MIL-OSI)

Company to Host Quarterly Conference Call at 5:00 P.M. ET on February 27, 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., Feb. 27, 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 fourth quarter and year ended December 31, 2024.


($ in thousands, except for per share data)	Three Months Ended								Year Ended
($ in thousands, except for per share data)	December 31,								December 31,
		2024			2023		Change			2024			2023		Change
Gross premiums written	$	140,739		$	128,260		9.7	%	$	647,805		$	635,709		1.9	%
Gross premiums earned		162,710			159,094		2.3			638,608			604,683		5.6
Net premiums earned		73,492			49,141		49.6			273,990			262,060		4.6
Total revenue		79,267			51,251		54.7			296,657			264,400		12.2
Income from continuing operations, net of tax		5,868			17,380		(66.2	)		76,319			85,204		(10.4	)
Income (loss) from discontinued operations, net of tax		(922	)		(3,096	)	70.2			(601	)		224,707		NM
Consolidated net income	$	4,946		$	14,284		(65.4	)%	$	75,718		$	309,911		NM

Net income available to ACIC stockholders per diluted share
Continuing Operations	$	0.12		$	0.38		(68.4	)%	$	1.55		$	1.92		(19.3	)%
Discontinued Operations	$	(0.02	)	$	(0.07	)	71.4			(0.01	)		5.06		NM
Total	$	0.10		$	0.31		(67.7	)%	$	1.54		$	6.98		NM

Reconciliation of net income to core income:
Plus: Non-cash amortization of intangible assets and goodwill impairment	$	608		$	811		(25.0	)%	$	2,639		$	3,247		(18.7	)%
Less: Income (loss) from discontinued operations, net of tax		(922	)		(3,096	)	70.2			(601	)		224,707		NM
Less: Net realized losses on investment portfolio		—			(2	)	NM			(124	)		(6,789	)	98.2
Less: Unrealized gains on equity securities		454			22		NM			1,996			814		NM
Less: Net tax impact ⁽¹⁾		32			166		(80.7	)%		161			1,937		(91.7	)
Core income⁽²⁾		5,990			18,005		(66.7	)		76,925			92,489		(16.8	)
Core income per diluted share ⁽²⁾	$	0.12		$	0.39		(69.2	)%	$	1.56		$	2.08		(25.0	)%

Book value per share									$	4.89		$	3.61		35.5	%

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:

“American Coastal, our insurance subsidiary, remains a leader in the Florida commercial residential market. The Company remained profitable in the 2024 fourth quarter with a combined ratio of 91.9%, despite the devastating impact and full catastrophe retention from Hurricane Milton, leading to a 67.5% combined ratio for the full year. This underscores the strength of our reinsurance strategy in safeguarding our balance sheet while mitigating the financial impact of catastrophic events.

Furthermore, American Coastal’s written premium increased 9.7% from the prior year fourth quarter and renewal retention remained steady. In December, we announced the launch of our apartment program, and, to date, we have received hundreds of high-quality submissions from our six broker partners, affirming the strong demand for American Coastal’s products.”

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						Year Ended
($ in thousands)	December 31,						December 31,
		2024			2023			2024			2023
Income from continuing operations, net of tax	$	5,868		$	17,380		$	76,319		$	85,204
Return on equity based on GAAP income from continuing operations, net of tax ⁽¹⁾		10.4	%		98.6	%		33.7	%		120.8	%

Income (loss) from discontinued operations, net of tax	$	(922	)	$	(3,096	)	$	(601	)	$	224,707
Return on equity based on GAAP income (loss) from discontinued operations, net of tax ⁽¹⁾		(1.6	)%		(17.6	)%		(0.3	)%	NM

Consolidated net income	$	4,946		$	14,284		$	75,718		$	309,911
Return on equity based on GAAP net income ⁽¹⁾		8.7	%		81.0	%		33.5	%	NM

Core income	$	5,990		$	18,005		$	76,925		$	92,489
Core return on equity ⁽¹⁾⁽²⁾		10.6	%		102.1	%		34.0	%		131.1	%

⁽¹⁾	Return on equity for the three months and years ended December 31, 2024 and 2023 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 on a consolidated basis and attributable to Interboro Insurance Company (“IIC”), now captured within discontinued operations, are shown below.


($ in thousands)	Three Months Ended					Year Ended
($ in thousands)	December 31,					December 31,
	2024		2023		Change	2024		2023		Change
Consolidated
Loss ratio, net⁽¹⁾	40.5	%	13.7	%	26.8 pts	25.3	%	17.8	%	7.5 pts
Expense ratio, net⁽²⁾	51.4	%	46.2	%	5.2 pts	42.2	%	43.1	%	(0.9) pts
Combined ratio (CR)⁽³⁾	91.9	%	59.9	%	32.0 pts	67.5	%	60.9	%	6.6 pts
Effect of current year catastrophe losses on CR	27.8	%	(0.8	)%	28.6 pts	9.3	%	4.9	%	4.4 pts
Effect of prior year favorable development on CR	(1.8	)%	(3.0	)%	1.2 pts	(1.4	)%	(4.9	)%	3.5 pts
Underlying combined ratio⁽⁴⁾	65.9	%	63.7	%	2.2 pts	59.6	%	60.9	%	(1.3) pts

IIC
Loss ratio, net⁽¹⁾	73.4	%	78.5	%	(5.1) pts	71.2	%	81.6	%	(10.4) pts
Expense ratio, net⁽²⁾	47.1	%	39.0	%	8.1 pts	43.4	%	50.8	%	(7.4) pts
Combined ratio (CR)⁽³⁾	120.5	%	117.5	%	3.0 pts	114.6	%	132.4	%	(17.8) pts
Effect of current year catastrophe losses on CR	0.8	%	10.6	%	(9.8) pts	4.1	%	12.6	%	(8.5) pts
Effect of prior year favorable development on CR	(0.7	)%	13.2	%	(13.9) pts	(3.6	)%	2.0	%	(5.6) pts
Underlying combined ratio⁽⁴⁾	120.4	%	93.7	%	26.7 pts	114.1	%	117.8	%	(3.7) 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								Year Ended
	December 31,								December 31,
		2024			2023		Change			2024			2023		Change
Loss and LAE	$	29,794		$	6,710		$	23,084	$	69,319		$	46,678		$	22,641
% of Gross earned premiums		18.3	%		4.2	%	14.1 pts			10.9	%		7.7	%	3.2 pts
% of Net earned premiums		40.5	%		13.7	%	26.8 pts			25.3	%		17.8	%	7.5 pts
Less:
Current year catastrophe losses	$	20,405		$	(406	)	$	20,811	$	25,561		$	12,783		$	12,778
Prior year reserve favorable development		(1,325	)		(1,482	)		157		(3,704	)		(12,694	)		8,990
Underlying loss and LAE ⁽¹⁾	$	10,714		$	8,598		$	2,116	$	47,462		$	46,589		$	873
% of Gross earned premiums		6.6	%		5.4	%	1.2 pts			7.4	%		7.7	%	(0.3) pts
% of Net earned premiums		14.5	%		17.5	%	(3.0) pts			17.3	%		17.8	%	(0.5) 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								Year Ended
	December 31,								December 31,
		2024			2023		Change			2024			2023		Change
Policy acquisition costs	$	26,514		$	13,138		$	13,376	$	70,990		$	75,436		$	(4,446	)
General and administrative		11,277			9,561			1,716		44,756			37,559			7,197
Total Operating Expenses	$	37,791		$	22,699		$	15,092	$	115,746		$	112,995		$	2,751
% of Gross earned premiums		23.2	%		14.3	%	8.9 pts			18.1	%		18.7	%	(0.6) pts
% of Net earned premiums		51.4	%		46.2	%	5.2 pts			42.2	%		43.1	%	(0.9) pts

Quarterly Financial Results

Net income for the fourth quarter of 2024 was $4.9 million, or $0.10 per diluted share, compared to $14.3 million, or $0.31 per diluted share, for the fourth quarter of 2023. Of this income, $5.9 million is attributable to continuing operations for the three months ended December 31, 2024, a decrease of $11.5 million from net income of $17.4 million for the same period in 2023. Quarter-over-quarter revenues increased, driven by a decrease in ceded premiums earned, and an increase in gross premiums earned and net investment income. This was offset by increased expenses quarter-over-quarter, driven by an increase in loss and LAE and policy acquisition costs, as described below. The Company’s loss from discontinued operations, also contributed to this change in net income, with the loss decreasing $2.2 million quarter-over-quarter, as the deconsolidation of the Company’s former subsidiary, United Property and Casualty Insurance Company (“UPC”), is not impacting the Company in 2024.

The Company’s total gross written premium increased $12.5 million, or 9.7%, to $140.7 million for the fourth quarter of 2024, from $128.3 million for the fourth quarter of 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.


($ in thousands)	Three Months Ended December 31,
		2024		2023	Change $		Change %
Direct Written and Assumed Premium by State
Florida	$	135,661	$	128,260	$	7,401	5.8	%
New York		—		—		—	—
Total direct written premium by state		135,661		128,260		7,401	5.8
Assumed premium		5,078		—		5,078	100.0
Total gross written premium by state	$	140,739	$	128,260	$	12,479	9.7	%

Gross Written Premium by Line of Business
Commercial property	$	140,739	$	128,260	$	12,479	9.7	%
Personal property		—		—		—	—
Total gross written premium by line of business	$	140,739	$	128,260	$	12,479	9.7	%

Loss and LAE increased by $23.1 million, or 344.8%, to $29.8 million for the fourth quarter of 2024, from $6.7 million for the fourth quarter of 2023. Loss and LAE expense as a percentage of net earned premiums increased 26.8 points to 40.5% for the fourth quarter of 2024, compared to 13.7% for the fourth quarter of 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the fourth quarter of 2024 would have been 6.6%, a 1.2 point increase from the fourth quarter of 2023.

Policy acquisition costs increased by $13.4 million, or 102.3%, to $26.5 million for the fourth quarter of 2024, from $13.1 million for the fourth quarter of 2023, primarily due to a decrease in reinsurance commission income attributable to the change in our quota share reinsurance cession rate from 40% to 20% effective June 1, 2024. In addition, our management fees attributable to our commercial property premiums increased as the result of additional premiums written quarter-over-quarter.

General and administrative expenses increased by $1.7 million, or 17.7%, to $11.3 million for the fourth quarter of 2024, from $9.6 million for the fourth quarter of 2023, driven by increased overhead costs, such as amortization of capitalized software, equipment costs and salaries, and external spend for audit, actuarial and legal services.

IIC Quarterly Results Highlights

Net loss attributable to IIC totaled $633 thousand for the fourth quarter of 2024 compared to a net loss of $274 thousand for the fourth quarter of 2023. Drivers of the quarter-over-quarter increase included: an increase in general and administrative expenses of $406 thousand as the result of increased costs such as software licensing costs and salary expenses, offset by increased revenues of $355 thousand, which were driven by an increase in gross earned premiums of $1.4 million, offset by increased ceded premiums earned of $1.0 million.

Annual Financial Results

Net income attributable to the Company for the year ended December 31, 2024 was $75.7 million, or $1.54 per diluted share, compared to net income of $309.9 million, or $6.98 per diluted share, for the year ended December 31, 2023. Drivers of net income during 2024 included increased gross premiums earned partially offset by increased ceded premiums earned. Net investment income also increased, driving additional total revenues year-over-year. This increase in revenue was offset by increased expenses year-over-year, driven by increases in losses and LAE incurred and general and administrative expenses, partially offset by decreased policy acquisition costs. During 2024, the Company experienced a net loss attributable to discontinued operations of $601 thousand, compared to $224.7 million of net income attributable to discontinued operations during 2023, as the deconsolidation of the Company’s former subsidiary, UPC, is not impacting the Company in 2024.

The Company’s total gross written premium increased by $12.1 million, or 1.9%, to $647.8 million for the year ended December 31, 2024, from $635.7 million for the year ended December 31, 2023. The breakdown of the quarter-over-quarter changes in both direct written and assumed premiums by state and gross written premium by line of business are shown in the table below.


($ in thousands)	Year Ended December 31,
		2024		2023		Change $		Change %
Direct Written and Assumed Premium by State ⁽¹⁾
Florida	$	642,727	$	635,602		$	7,125	1.1	%
New York		—		—			—	—
Texas		—		(9	)		9	(100.0	)
Total direct written premium by state		642,727		635,593			7,134	1.1
Assumed premium ⁽²⁾		5,078		116			4,962	4,277.6
Total gross written premium by state	$	647,805	$	635,709		$	12,096	1.9	%

Gross Written Premium by Line of Business
Commercial property	$	647,805	$	635,709		$	12,096	1.9	%
Personal property		—		—			—	—
Total gross written premium by line of business	$	647,805	$	635,709		$	12,096	1.9	%

⁽¹⁾	The Company ceased writing in Texas as of May 31, 2022.
⁽²⁾	Assumed premium written for 2023 and 2024 primarily included commercial property business assumed from unaffiliated insurers.

Loss and LAE increased by $22.6 million, or 48.4%, to $69.3 million for the year ended December 31, 2024, from $46.7 million for the year ended December 31, 2023. Loss and LAE expense as a percentage of net earned premiums increased 7.5 points to 25.3% for the year ended December 31, 2024, compared to 17.8% for the year ended December 31, 2023. Excluding catastrophe losses and reserve development, the Company’s gross underlying loss and LAE ratio for the year ended December 31, 2024, would have been 7.4%, a decrease of 0.3 points from 7.7% for the year ended December 31, 2023.

Policy acquisition costs decreased by $4.4 million, or 5.9%, to $71.0 million for the year ended December 31, 2024, from $75.4 million for the year ended December 31, 2023, primarily due to an increase in ceding commission income as the result of the Company including quota share reinsurance coverage in their core catastrophe reinsurance programs beginning June 1, 2023. This resulted in ceding commission income for the full year ended December 31, 2024, compared to only seven months of the year ended December 31, 2023. This was partially offset by increased external management fees and premium taxes related to the Company’s increased commercial lines gross written premium.

General and administrative expenses increased by $7.2 million, or 19.1%, to $44.8 million for the year ended December 31, 2024, from $37.6 million for the year ended December 31, 2023, driven by increased overhead costs, such as amortization of capitalized software and salaries, as well as external spend for audit, actuarial and legal services.

IIC Annual Results Highlights

Net loss attributable to IIC totaled $1.3 million for the year ended December 31, 2024, compared to a net loss of $3.0 million for the year ended December 31, 2023. Drivers of the year-over-year decreased loss included: an increase in net premiums earned of $6.5 million, driven by an increase in gross premiums earned of $5.1 million, while ceded premiums earned decreased $1.4 million. This was partially offset by increased expenses of $3.9 million, driven by an increase in loss and LAE incurred of $2.6 million, which was driven by current year non-catastrophe losses, and an increase in general and administrative expenses of $853 thousand as the result of increased costs, such as software licensing costs and salary expenses. IIC’s policy acquisition costs also increased $426 thousand, driven by the increase in premiums described above.

Reinsurance Costs as a Percentage of Gross Earned Premium

Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 were as follows:


	2024	2023
Non-at-Risk	(0.3) %	(0.2) %
Quota Share	(16.2) %	(31.4) %
All Other	(38.3) %	(37.4) %
Total Ceding Ratio	(54.8) %	(69.0) %

Ceded premiums earned related to the Company’s catastrophe excess of loss contracts remained relatively flat quarter-over-quarter. The Company’s utilization of quota share reinsurance coverage resulted in less excess of loss coverage needed for the 2023-2024 catastrophe year; however, the cost savings associated with this reduction in necessary coverage were offset by rate increases on catastrophe excess of loss coverage for the same period. This utilization of quota share reinsurance coverage increased the Company’s ceding ratio overall during 2023. Effective June 1, 2024, the Company decreased its quota share reinsurance coverage from 40% to 20%, lowering the Company’s quota share ceding ratio and overall ceding ratio.

Reinsurance costs as a percentage of gross earned premium in the fourth quarter of 2024 and 2023 for IIC, captured within discontinued operations, were as follows:


	IIC
	2024	2023
Non-at-Risk	(2.4) %	(2.7) %
Quota Share	— %	— %
All Other	(28.4) %	(20.9) %
Total Ceding Ratio	(30.8) %	(23.6) %

Investment Portfolio Highlights

The Company’s cash, restricted cash and investment holdings increased from $311.9 million at December 31, 2023, to $540.8 million at December 31, 2024. This increase is 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 82.3% of total investments at December 31, 2024, compared to 89.4% of total investments at December 31, 2023. The Company’s fixed maturity investments had a modified duration of 2.2 years at December 31, 2024, compared to 3.4 years at December 31, 2023.

Book Value Analysis

Book value per common share increased 35.5% from $3.61 at December 31, 2023, to $4.89 at December 31, 2024. Underlying book value per common share increased 31.2% from $3.97 at December 31, 2023, to $5.21 at December 31, 2024. An increase in the Company’s retained earnings as a result of net income for the year ended December 31, 2024, 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 December 31, 2024.


($ in thousands, except for share and per share data)	December 31, 2024			December 31, 2023
	December 31, 2024			December 31, 2023
Book Value per Share
Numerator:
Common stockholders’ equity	$	235,660		$	168,765
Denominator:
Total Shares Outstanding		48,204,962			46,777,006
Book Value Per Common Share	$	4.89		$	3.61

Book Value per Share, Excluding the Impact of AOCI
Numerator:
Common stockholders’ equity	$	235,660		$	168,765
Less: Accumulated other comprehensive loss		(15,666	)		(17,137	)
Stockholders’ Equity, excluding AOCI	$	251,326		$	185,902
Denominator:
Total Shares Outstanding		48,204,962			46,777,006
Underlying Book Value Per Common Share⁽¹⁾	$	5.21		$	3.97

⁽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 will sell and Forza will acquire 100% of the issued and outstanding stock of the Company’s subsidiary, IIC. Forza’s application to acquire IIC was approved by the New York Department of Financial Services on February 13, 2025. The Company and Forza have agreed to close on April 1, 2025.

In addition, on February 27, 2023, the Florida Department of Financial Services was appointed as receiver of the Company’s former subsidiary, UPC. As such, prior year financial results and Consolidated Balance Sheet components have been reclassified to reflect continuing and discontinued operations appropriately.

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						Year Ended
	December 31,						December 31,
		2024			2023			2024			2023
REVENUE:
Gross premiums written	$	140,739		$	128,260		$	647,805		$	635,709
Change in gross unearned premiums		21,971			30,834			(9,197	)		(31,026	)
Gross premiums earned		162,710			159,094			638,608			604,683
Ceded premiums earned		(89,218	)		(109,953	)		(364,618	)		(342,623	)
Net premiums earned		73,492			49,141			273,990			262,060
Net investment income		5,321			2,075			20,795			8,300
Net realized investment losses		—			(2	)		(124	)		(6,789	)
Net unrealized gains on equity securities		454			22			1,996			814
Other revenue		—			15			—			15
Total revenues	$	79,267		$	51,251		$	296,657		$	264,400
EXPENSES:
Losses and loss adjustment expenses		29,794			6,710			69,319			46,678
Policy acquisition costs		26,514			13,138			70,990			75,436
General and administrative expenses		11,277			9,561			44,756			37,559
Interest expense		2,784			2,719			11,996			10,875
Total expenses		70,369			32,128			197,061			170,548
Income before other income		8,898			19,123			99,596			93,852
Other income (loss)		(11	)		1,071			2,063			2,228
Income before income taxes		8,887			20,194			101,659			96,080
Provision for income taxes		3,019			2,814			25,340			10,876
Income from continuing operations, net of tax	$	5,868		$	17,380		$	76,319		$	85,204
Income (loss) from discontinued operations, net of tax		(922	)		(3,096	)		(601	)		224,707
Net income	$	4,946		$	14,284		$	75,718		$	309,911
OTHER COMPREHENSIVE INCOME:
Change in net unrealized gains (losses) on investments		(4,049	)		6,696			3,355			5,998
Reclassification adjustment for net realized investment losses		—			2			124			6,808
Income tax benefit related to items of other comprehensive income		—			—			—			—
Total comprehensive income	$	897		$	20,982		$	79,197		$	322,717

Weighted average shares outstanding
Basic		48,095,488			44,713,148			47,831,412			43,596,432
Diluted		49,589,458			45,712,715			49,362,985			44,388,804

Earnings available to ACIC common stockholders per share
Basic
Continuing operations	$	0.12		$	0.39		$	1.60		$	1.96
Discontinued operations		(0.02	)		(0.07	)		(0.01	)		5.15
Total	$	0.10		$	0.32		$	1.59		$	7.11
Diluted
Continuing operations	$	0.12		$	0.38		$	1.55		$	1.92
Discontinued operations		(0.02	)		(0.07	)		(0.01	)		5.06
Total	$	0.10		$	0.31		$	1.54		$	6.98

Dividends declared per share	$	0.50		$	—		$	0.50		$	—


Consolidated Balance Sheets In thousands, except share amounts

	December 31, 2024			December 31, 2023
ASSETS
Investments, at fair value:
Fixed maturities, available-for-sale	$	281,001		$	138,387
Equity securities		36,794			—
Other investments		23,623			16,487
Total investments	$	341,418		$	154,874
Cash and cash equivalents		137,036			138,930
Restricted cash		62,357			18,070
Accrued investment income		2,964			1,767
Property and equipment, net		5,736			3,658
Premiums receivable, net		46,564			45,924
Reinsurance recoverable on paid and unpaid losses		263,419			340,820
Ceded unearned premiums		160,893			155,301
Goodwill		59,476			59,476
Deferred policy acquisition costs		40,282			21,149
Intangible assets, net		5,908			8,548
Other assets		16,816			36,718
Assets held for sale		73,243			77,143
Total Assets	$	1,216,112		$	1,062,378
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Unpaid losses and loss adjustment expenses	$	322,087		$	347,738
Unearned premiums		285,354			276,157
Reinsurance payable on premiums		83,130			—
Payments outstanding		699			706
Accounts payable and accrued expenses		86,140			74,783
Operating lease liability		3,323			739
Other liabilities		757			672
Notes payable, net		149,020			148,688
Liabilities held for sale		49,942			44,130
Total Liabilities	$	980,452		$	893,613
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; 48,417,045 and 46,989,089 issued, respectively; 48,204,962 and 46,777,006 outstanding, respectively		5			5
Additional paid-in capital		436,524			423,717
Treasury shares, at cost; 212,083 shares		(431	)		(431	)
Accumulated other comprehensive loss		(15,666	)		(17,137	)
Retained earnings (deficit)		(184,772	)		(237,389	)
Total Stockholders’ Equity	$	235,660		$	168,765
Total Liabilities and Stockholders’ Equity	$	1,216,112		$	1,062,378

MIL-OSI: ARRAY Technologies, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2024

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024 Financial Highlights

Revenue of $275.2 million
Gross Margin of 28.5%
Adjusted gross margin⁽¹⁾ of 29.8%
Net loss to common shareholders of $(141.2) million
- Net loss to common shareholders inclusive of $74.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
Adjusted EBITDA⁽¹⁾ of $45.2 million
Net loss per basic and diluted share of $(0.93)
Adjusted net income per diluted share⁽¹⁾ of $0.16

Full Year 2024 Financial Highlights

Revenue of $915.8 million
Gross Margin of 32.5%
Adjusted gross margin ⁽¹⁾ of 34.1%
Net loss to common shareholders of $(296.1) million
- Net loss to common shareholders inclusive of $236.0 million non-cash goodwill impairment charge and $91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
Adjusted EBITDA⁽¹⁾ of $173.6 million
Net loss per basic and diluted share of $(1.95)
Adjusted net income per diluted share⁽¹⁾ of $0.60
Free cash flow⁽¹⁾ of $135.4 million
Total executed contracts and awarded orders at December 31, 2024 were $2.0 billion

ALBUQUERQUE, N.M., Feb. 27, 2025 (GLOBE NEWSWIRE) — ARRAY Technologies (NASDAQ: ARRY) (“ARRAY” or the “Company”), a global leader in utility-scale solar tracking, today announced financial results for its fourth quarter and full year ended December 31, 2024.

“ARRAY delivered strong fourth quarter and full year 2024 results, we exceeded the mid-point of our fourth quarter revenue guidance and achieved record gross margin on the full year. Our ongoing focus on operational execution continues to translate into robust profitability and healthy cash flow. We finished 2024 with an orderbook of $2 billion, representing 10% year-on-year growth. We are pleased with our results, which delivered significant progress in both market share and commercial growth. Thank you to our employees for their continued focus and hard work. Additionally, we are on track to deliver 100% domestic content solar trackers by the first half of 2025. Our OmniTrack™ product continues to gain traction in the market, and now accounts for over 20% of our orderbook. We are excited about our investment in Swap Robotics, a disruptive technology driving automation in PV installations. We believe the integration of Swap Robotics technology into our product portfolio will drive project efficiencies and cost savings for our customers,” said Chief Executive Officer, Kevin G. Hostetler.

Mr. Hostetler continued, “While persistent headwinds, including permitting and interconnection delays, shortages of high-voltage circuit breakers and transformers, and labor constraints—continue to impact project timelines in the United States, we experienced the market stabilizing by year-end, in contrast to the delays experienced in the middle of the year. In Europe, we anticipate modest growth in 2025 as we are well positioned to capture additional market share. However, in Brazil, macro factors such as currency devaluation, volatile interest rates, and newly introduced tariffs on solar components have impacted growth. For 2025, at the midpoint of our guidance, ARRAY expects to deliver over 20% year-over-year revenue growth. We are optimistic about future demand growth for utility-scale solar energy both domestically and internationally and confident that our value proposition in the industry will continue to propel growth for years to come.”

First Quarter and Full Year 2025 Guidance

Given the uncertainty in the utility-scale solar energy market and headwinds we experienced during 2024 which pushed out project timelines, we are providing guidance for the first quarter of 2025. It is not our intention to provide quarterly guidance in the future. For the quarter ending March 31, 2025, the Company expects:

Revenue to be in the range of $260 million to $270 million
Adjusted EBITDA margin⁽²⁾ to be in the range of 11% to 13%

For the year ending December 31, 2025, the Company expects:

Revenue to be in the range of $1.05 billion to $1.15 billion
Adjusted EBITDA⁽²⁾ to be in the range of $180 million to $200 million
Adjusted net income per share⁽²⁾ to be in the range of $0.60 to $0.70

Supplemental Presentation and Conference Call Information

ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (February 27, 2025) at 5:00 p.m. (ET). The conference call can be accessed live over the phone by dialing (877)-869-3847 (domestic) or (201)-689-8261 (international) and entering the passcode 13750627 or via webcast of the live conference call by logging onto the Investor Relations sections of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)-660-6853 (domestic), or (201)-612-7415 (international) with the passcode 13750627. The replay will be available until 11:59 p.m. (ET) on March 13, 2025. The online replay will be available for 30 days on the same website immediately following the call.

About ARRAY Technologies, Inc.

ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology – relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.

Investor Relations Contact:
Keith Jennings
505-437-0010
investors@arraytechinc.com

Media Contact:
Nicole Stewart
505-589-8257

Forward-Looking Statements

This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology or product developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “anticipates,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.

ARRAY’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Ukraine-Russia war, attacks on shipping in the Red Sea, conflict in the Middle East, and inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Non-GAAP Financial Information

This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.

We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) impairment of long-lived assets, (xii) goodwill impairment, (xiii) certain legal expenses, and (xiv) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) preferred accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) impairment of long-lived assets, (viii) goodwill impairment, (ix) certain legal expenses, (x) other costs, and (xi) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, (iii) other costs and (iv) income tax expense adjustments. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment and cash payments for the acquisition of right-of-use assets.

A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this presentation. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.

We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.

Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.

We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.

You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.

⁽¹⁾ A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.
⁽²⁾ A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 outlook, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.

Array Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) (in thousands, except per share and share amounts)

	December 31,
		2024			2023
ASSETS
Current assets
Cash and cash equivalents	$	362,992		$	249,080
Restricted cash		1,149			—
Accounts receivable, net		275,838			332,152
Inventories		200,818			161,964
Prepaid expenses and other		157,927			89,085
Total current assets		998,724			832,281

Property, plant and equipment, net		26,222			27,893
Goodwill		160,189			435,591
Other intangible assets, net		181,409			354,389
Deferred income tax assets		17,754			15,870
Other assets		41,701			40,717
Total assets	$	1,425,999		$	1,706,741

LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	172,368		$	119,498
Accrued expenses and other		91,183			70,211
Accrued warranty reserve		2,063			2,790
Income tax payable		5,227			5,754
Deferred revenue		119,775			66,488
Current portion of contingent consideration		1,193			1,427
Current portion of debt		30,714			21,472
Other current liabilities		15,291			48,051
Total current liabilities		437,814			335,691

Deferred income tax liabilities		21,398			66,858
Contingent consideration, net of current portion		7,868			8,936
Other long-term liabilities		18,684			20,428
Long-term warranty		4,830			3,372
Long-term debt, net of current portion		646,570			660,948
Total liabilities		1,137,164			1,096,233

Commitments and contingencies (Note 16)

Series A Redeemable Perpetual Preferred Stock: $0.001 par value; 500,000 shares authorized; 460,920 and 432,759 issued, respectively; liquidation preference of $493.1 million at both dates		406,931			351,260

Stockholders’ equity
Preferred stock $0.001 par value – 4,500,000 shares authorized; none issued at respective dates		—			—
Common stock $0.001 par value – 1,000,000,000 shares authorized; 151,951,652 and 151,242,120 shares issued at respective dates		151			151
Additional paid-in capital		297,780			344,517
Accumulated deficit		(370,624	)		(130,230	)
Accumulated other comprehensive income (loss)		(45,403	)		44,810
Total stockholders’ equity		(118,096	)		259,248
Total liabilities, redeemable perpetual preferred stock and stockholders’ equity	$	1,425,999		$	1,706,741

Array Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) (in thousands, except per share amounts)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024				2023
Revenue	$	275,232		$	341,615		$	915,807			$	1,576,551
Cost of revenue:
Cost of product and service revenue		193,273			253,746			603,572				1,146,442
Amortization of developed technology		3,640			3,640			14,558				14,558
Total cost of revenue		196,913			257,386			618,130				1,161,000
Gross profit		78,319			84,229			297,677				415,551

Operating expenses:
General and administrative		45,663			43,710			160,567				159,535
Change in fair value of contingent consideration		396			732			125				2,964
Depreciation and amortization		8,702			9,567			36,086				38,928
Long-lived assets impairment		91,904			—			91,904		—		—
Goodwill impairment		74,000			—			236,000				—
Total operating expenses		220,665			54,009			524,682				201,427

(Loss) income from operations		(142,346	)		30,220			(227,005	)			214,124

Other income (expense), net		654			(888	)		(1,008	)			(1,015	)
Interest income		4,092			2,206			16,777				8,330
Foreign currency (loss) gain, net		(3,442	)		(326	)		(4,515	)			(53	)
Interest expense		(9,007	)		(8,857	)		(34,825	)			(44,229	)
Total other (expense) income		(7,703	)		(7,865	)		(23,571	)			(36,967	)

(Loss) income before income tax expense (benefit)		(150,049	)		22,355			(250,576	)			177,157
Income tax (benefit) expense		(23,146	)		3,013			(10,182	)			39,917
Net (loss) income		(126,903	)		19,342			(240,394	)			137,240
Preferred dividends and accretion		14,338			13,332			55,670				51,691
Net (loss) income to common shareholders	$	(141,241	)	$	6,010		$	(296,064	)		$	85,549

(Loss) income per common share
Basic	$	(0.93	)	$	0.04		$	(1.95	)		$	0.57
Diluted	$	(0.93	)	$	0.04		$	(1.95	)		$	0.56

Weighted average common shares outstanding
Basic		151,944			151,175			151,754				150,942
Diluted		151,944			152,110			151,754				152,022

Array Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (in thousands)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Operating activities:
Net income (loss)	$	(126,903	)	$	19,342		$	(240,394	)	$	137,240
Adjustments to net income (loss):
Goodwill impairment		74,000			—			236,000			—
Impairment of long-lived assets		91,904			—			91,904			—
Provision for bad debts		(1,357	)		2,644			2,058			2,527
Deferred tax benefit		(30,371	)		(6,534	)		(37,650	)		(8,862	)
Depreciation and amortization		9,206			9,950			38,221			40,268
Amortization of developed technology		3,640			3,640			14,558			14,558
Amortization of debt discount and issuance costs		1,435			1,447			6,087			10,570
Gain on debt refinancing		—			(457	)		—			(457	)
Equity-based compensation		3,498			2,845			10,349			14,540
Change in fair value of contingent consideration		396			732			125			2,964
Warranty provision		3,127			1,075			3,163			4,666
Write-down of inventories		442			1,844			2,923			6,431
Changes in operating assets and liabilities, net of business acquisition:
Accounts receivable		(442	)		99,164			41,423			92,800
Inventories		(14,823	)		54,189			(44,787	)		66,743
Income tax receivables		33			(3,156	)		(4,112	)		9
Prepaid expenses and other		(24,505	)		(8,700	)		(69,708	)		(10,840	)
Accounts payable		24,475			(52,097	)		58,180			(37,654	)
Accrued expenses and other		34,492			(10,019	)		(436	)		5,325
Income tax payable		3,790			2,666			(863	)		1,936
Lease liabilities		(2,894	)		9,227			(8,624	)		1,177
Deferred revenue		8,443			(33,821	)		55,563			(111,986	)
Net cash provided by operating activities		57,586			93,981			153,980			231,955
Investing activities
Purchase of property, plant and equipment		(1,701	)		(5,374	)		(7,305	)		(16,989	)
Retirement/disposal of property, plant and equipment		(4	)		168			34			168
Cash payments for the acquisition of right-of-use assets		(11,276	)		—			(11,276	)		—
SAFE Investment		(3,000	)		—			(3,000	)		—
Sale of equity investment		—			—			11,975			—
Net cash used in investing activities		(15,981	)		(5,206	)		(9,572	)		(16,821	)
Financing activities
Series A equity issuance costs		—			—			—			(1,509	)
Tax withholding related to vesting of equity-based compensation		(18	)		—			(1,752	)		—
Proceeds from issuance of other debt		74,035			2,795			93,059			63,311
Principal payments on term loan facility		(1,075	)		(1,075	)		(4,300	)		(74,300	)
Principal payments on other debt		(72,545	)		(19,039	)		(97,424	)		(88,063	)
Contingent consideration payments		—			—			(1,427	)		(1,200	)
Net cash used in financing activities		397			(17,319	)		(11,844	)		(101,761	)
Effect of exchange rate changes on cash and cash equivalent balances		(10,233	)		3,614			(17,503	)		1,806
Net change in cash and cash equivalents		31,769			75,070			115,061			115,179
Cash and cash equivalents and restricted cash, beginning of period		332,372			174,010			249,080			133,901
Cash and cash equivalents and restricted cash, end of period	$	364,141		$	249,080		$	364,141		$	249,080

Supplemental cash flow information
Cash paid for interest	$	8,989		$	8,995		$	38,655		$	43,949
Cash paid for income taxes (net of refunds)	$	2,746		$	9,145		$	27,966		$	45,942

Non-cash investing and financing
Dividends accrued on Series A	$	(13,668	)	$	6,803		$	7,246		$	26,370

Array Technologies, Inc.
Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense, and Free Cash Flow Reconciliation (unaudited)
(in thousands, except per share amounts)

The following table reconciles Gross profit to Adjusted gross profit:

	Three Months Ended December 31,					Year Ended December 31,
		2024		2023			2024		2023
Revenue		275,232		341,615			915,807		1,576,551
Cost of revenue		196,913		257,386			618,130		1,161,000
Gross profit		78,319		84,229			297,677		415,551
Gross margin		28.5	%	24.7	%		32.5	%	26.4	%

Amortization of developed technology		3,640		3,640			14,558		14,558
Adjusted gross profit		81,959		87,869			312,235		430,109
Adjusted gross margin		29.8	%	25.7	%		34.1	%	27.3	%

The following table reconciles Net income to Adjusted EBITDA:

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net (loss) income	$	(126,903	)	$	19,342		$	(240,394	)	$	137,240
Preferred dividends and accretion		14,338			13,332			55,670			51,691
Net (loss) income to common shareholders	$	(141,241	)	$	6,010		$	(296,064	)	$	85,549
Other expense, net		(4,746	)		(1,318	)		(15,769	)		(7,315	)
Foreign currency loss (gain), net		3,442			326			4,515			53
Preferred dividends and accretion		14,338			13,332			55,670			51,691
Interest expense		9,007			8,857			34,825			44,229
Income tax (benefit) expense		(23,146	)		3,013			(10,182	)		39,917
Depreciation expense		1,140			772			4,410			2,669
Amortization of intangibles		8,142			9,186			33,811			37,607
Amortization of developed technology		3,640			3,640			14,558			14,558
Equity-based compensation		3,498			2,648			10,349			14,578
Change in fair value of contingent consideration		396			732			125			2,964
Long-lived assets impairment		91,904			—			91,904			—
Goodwill impairment		74,000			—			236,000			—
Certain legal expenses^(a)		2,240			244			6,773			898
Other costs^(b)		2,586			736			2,628			736
Adjusted EBITDA	$	45,200		$	48,178		$	173,553		$	288,134

^(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a regional tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

The following table reconciles Net income to Adjusted net income:

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net (loss) income	$	(126,903	)	$	19,342		$	(240,394	)	$	137,240
Preferred dividends and accretion		14,338			13,332			55,670			51,691
Net (loss) income to common shareholders	$	(141,241	)	$	6,010		$	(296,064	)	$	85,549
Amortization of intangibles		8,142			9,187			33,811			37,607
Amortization of developed technology		3,640			3,640			14,558			14,558
Amortization of debt discount and issuance costs		1,547			1,447			6,199			10,570
Preferred accretion		7,093			6,528			27,510			25,320
Equity based compensation		3,498			2,648			10,349			14,578
Change in fair value of contingent consideration		396			732			125			2,964
Impairment of long-lived assets		91,904			—			91,904			—
Goodwill impairment		74,000			—			236,000			—
Certain legal expenses^(a)		2,240			244			6,773			898
Other costs^(b)		2,586			736			2,628			736
Income tax expense adjustments^(c)		(28,688	)		(4,757	)		(42,596	)		(20,863	)
Adjusted net income	$	25,117		$	26,415		$	91,197		$	171,917

(Loss) income per common share
Basic	$	(0.93	)	$	0.04		$	(1.95	)	$	0.57
Diluted	$	(0.93	)	$	0.04		$	(1.95	)	$	0.56
Weighted average number of common shares outstanding
Basic		151,944			151,175			151,754			150,942
Diluted		151,944			152,110			151,754			152,022

Adjusted net income per common share
Basic	$	0.17		$	0.17		$	0.60		$	1.14
Diluted	$	0.16		$	0.17		$	0.60		$	1.13
Weighted average number of common shares outstanding
Basic		151,944			151,175			151,754			150,942
Diluted		152,255			152,110			152,285			152,022

^(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

^(c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

The following table reconciles General and administrative expense to Adjusted general and administrative expense:


	Three Months Ended December 31,					Year Ended December 31,
		2024		2023			2024		2023
General and administrative expense		45,663		43,710			160,567		159,535
Equity based compensation		3,498		2,648			10,349		14,578
Certain legal expenses^(a)		2,240		244			6,773		898
Other costs^(b)		2,586		736			2,628		736
Income tax expense adjustments^(c)		(28,688	)	(4,757	)		(42,596	)	(20,863	)
Adjusted general and administrative expense		25,299		42,581			137,721		154,884

^(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.

^(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the Three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.

^(c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.

The following table reconciles new cash provided by operating activities to Free cash flow:

	Three Months Ended December 31,					Year Ended December 31,
		2024		2023			2024		2023
Net cash provided by operating activities		57,586		93,981			153,980		231,955
Purchase of property, plant and equipment		(1,701	)	(5,374	)		(7,305	)	(16,989	)
Cash payments for the acquisition of right-of-use assets		(11,276	)	—			(11,276	)	—
Free cash flow		44,609		88,607			135,399		214,966

MIL-OSI: Definitive Healthcare Reports Financial Results for Fourth Quarter and Full Fiscal Year 2024

Source: GlobeNewswire (MIL-OSI)

FRAMINGHAM, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Definitive Healthcare Corp. (“Definitive Healthcare” or the “Company”) (Nasdaq: DH), an industry leader in healthcare commercial intelligence, today announced financial results for the quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Financial Highlights:

Revenue was $62.3 million, a decrease of 6% from $65.9 million in Q4 2023.
Net Loss, inclusive of goodwill impairment charges of $97.1 million, was $(84.7) million, or (136)% of revenue, compared to $(13.4) million or (20)% of revenue in Q4 2023.
Adjusted Net Income was $12.6 million, compared to $10.6 million in Q4 2023.
Adjusted EBITDA was $17.5 million, or 28% of revenue, compared to $19.8 million, or 30% of revenue in Q4 2023.
Cash Flow from Operations was $8.1 million in the quarter.
Unlevered Free Cash Flow was $(1.6) million in the quarter.

Full Year 2024 Financial Highlights:

Revenue was $252.2 million, compared to $251.4 million for the full year 2023.
Net Loss, inclusive of goodwill impairment charges of $688.9 million, was $(591.4) million, or (235)% of revenue, compared to $(289.6) million, inclusive of goodwill impairment charges of $287.4 million, or (115)% of revenue for the full year 2023.
Adjusted Net Income was $55.1 million, compared to $46.7 million for the full year 2023.
Adjusted EBITDA was $79.1 million, or 31% of revenue, compared to $74.5 million, or 30% of revenue for the full year 2023.
Cash Flow from Operations was $58.2 million for the full year 2024, up 41% from $41.2 million for the full year 2023.
Unlevered Free Cash Flow was $72.5 million for the full year 2024, up 6% from $68.6 million for the full year 2023.

“Revenue and adjusted EBITDA were above the high end of our guided ranges despite challenging commercial conditions,” said Kevin Coop, CEO of Definitive Healthcare. “We executed on delivering new business growth, securing new logos and expanding relationships with existing customers through upsell and cross-sell opportunities. We are committed to building on this momentum as we move into 2025.

“I’m also pleased to announce that after a thorough search process, Casey Heller, our Senior Vice President of Finance, will assume the role of Chief Financial Officer, effective on June 2, 2025. We expect a smooth transition as she is already responsible for a significant portion of the company’s financial functions, including all aspects of commercial and operational finance, FP&A, and investor relations. In addition, Rick Booth will continue to serve as CFO until early June to give us time to backfill Casey’s current position and enable her to hit the ground running as CFO with a full team.”

Recent Business and Operating Highlights:

Customer Wins

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

A behavioral and mental health screening company is leveraging our reference, affiliation, and claims data to identify and build stronger relationships with the right doctors and practices. They’ve also created an AI-powered tool that leverages insights from our data to compare physician prescribing habits, helping health systems improve care and drive growth.
A leading U.S. supplier of industrial, medical, and specialty gases chose us to gain insights into complex IDN hierarchies, identify high-volume facilities, navigate the Healthcare RFP process, and expand into new markets like surgery centers and post-acute facilities. This partnership also helps them connect with key nursing, procurement, and purchasing executives at both the facility and group purchasing organization (GPO) levels.
A large pharmaceutical company is leveraging our data along with their own internal and third-party data inside a robust master data management (MDM) system they have built, to develop a sophisticated patient and provider segmentation machine learning model, along with a next-best action program, to support the launch of a new pain medication. Definitive not only provides critical data and services to enable this integration, but our expertise also increases the value the customer derives from their existing platform investments.

Business Outlook

Based on information as of February 27, 2025, the Company is issuing the following financial guidance.

First Quarter 2025:

Revenue is expected to be in the range of $55.5 – $57.0 million.
Adjusted Operating Income is expected to be in the range of $7.5 – $8.5 million.
Adjusted EBITDA is expected to be in the range of $10.5 – $11.5 million, and 19 – 20% adjusted EBITDA margin.
Adjusted Net Income is expected to be $3.0 – $4.0 million.
Adjusted Net Income Per Diluted Share is expected to be approximately $0.02 per share on approximately 153.3 million weighted-average shares outstanding.

Full Year 2025:

Revenue is expected to be in the range of $230.0 – $240.0 million.
Adjusted Operating Income is expected to be in the range of $49.0 – $53.0 million.
Adjusted EBITDA is expected to be in the range of $61.0 – $65.0 million, for a full-year adjusted EBITDA margin ranging from 26 – 28%.
Adjusted Net Income is expected to be $30.0 – $34.0 million.
Adjusted Net Income Per Diluted Share is expected to be $0.19 – $0.22 per share on approximately 153.9 million weighted-average shares outstanding.

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

Conference Call Information

Definitive Healthcare will host a conference call today February 27, 2025, at 5:00 p.m. (Eastern Time) to discuss the Company’s full financial results and current business outlook. Participants may access the call at 1-877-358-7298 or 1-848-488-9244. Shortly after the conclusion of the call, a replay of this conference call will be available through March 29, 2025, at 1-800-645-7964 or 1-757-849-6722. The replay passcode is 1765#. A live audio webcast of the event will be available on Definitive Healthcare’s Investor Relations website at https://ir.definitivehc.com/.

About Definitive Healthcare

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

Forward-Looking Statements

This press release includes forward-looking statements that reflect our current views with respect to future events and financial performance. Such statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, and can generally be identified by words or phrases written in the future tense and/or preceded by words such as “likely,” “will,” “should,” “may,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “assumes,” “would,” “potentially” or similar words or variations thereof, or the negative thereof, references to future periods, or by the inclusion of forecasts or projections, but these terms are not the exclusive means of identifying such statements. Examples of forward-looking statements include, but are not limited to, statements we make regarding our outlook, financial guidance, the benefits of our healthcare commercial intelligence solutions, our overall future prospects, customer behaviors and use of our solutions, the market, industry and macroeconomic environment, our plans to improve our operational and financial performance and our business, our ability to execute on our plans, customer growth, including our upsell and cross-sell opportunities, and our ability to successfully transition executive leadership. Forward-looking statements in this press release are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the following: global geopolitical tension and difficult macroeconomic conditions; actual or potential changes in international, national, regional and local economic, business and financial conditions, including trade tensions, recessions, inflation, high interest rates, volatility in the capital markets and related market uncertainty; our inability to acquire new customers and generate additional revenue from existing customers; our inability to generate sales of subscriptions to our platform or any decline in demand for our platform and the data we offer; the competitiveness of the market in which we operate and our ability to compete effectively; the failure to maintain and improve our platform, or develop new modules or insights for healthcare commercial intelligence; the inability to obtain and maintain accurate, comprehensive or reliable data, which could result in reduced demand for our platform; the loss of our access to our data providers; the failure to respond to advances in healthcare commercial intelligence; an inability to attract new customers and expand subscriptions of current customers; our ability to successfully transition executive leadership; the possibility that our security measures are breached or unauthorized access to data is otherwise obtained; and the risks of being required to collect sales or other related taxes for subscriptions to our platform in jurisdictions where we have not historically done so.

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

For additional discussion of factors that could impact our operational and financial results, refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 that will be filed following this earnings release, as well as our Current Reports on Form 8-K and other subsequent SEC filings, which are or will be available on the Investor Relations page of our website at ir.definitivehc.com and on the SEC website at www.sec.gov.

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

Website

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

Non-GAAP Financial Measures

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

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

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

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

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

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

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

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

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

Media Contact:
Bethany Swackhamer
bswackhamer@definitivehc.com


Definitive Healthcare Corp.
Consolidated Balance Sheets
(amounts in thousands, except number of shares and par value; unaudited)

	December 31, 2024			December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	105,378		$	130,976
Short-term investments		184,786			177,092
Accounts receivable, net		53,232			59,249
Prepaid expenses and other assets		13,040			13,120
Deferred contract costs		13,736			13,490
Total current assets		370,172			393,927
Property and equipment, net		3,791			4,471
Operating lease right-of-use assets, net		7,521			9,594
Other assets		2,300			2,388
Deferred contract costs		14,389			17,320
Intangible assets, net		297,933			323,121
Goodwill		393,283			1,075,080
Total assets	$	1,089,389		$	1,825,901
Liabilities and Equity
Current liabilities:
Accounts payable	$	10,763		$	5,787
Accrued expenses and other liabilities		40,896			51,529
Deferred revenue		93,344			97,377
Term loan		13,750			13,750
Operating lease liabilities		2,408			2,239
Total current liabilities		161,161			170,682
Long-term liabilities:
Deferred revenue		32			9
Term loan		229,368			242,567
Operating lease liabilities		7,586			9,372
Tax receivable agreements liability		49,511			127,000
Deferred tax liabilities		25,088			67,163
Other liabilities		9,449			9,934
Total liabilities		482,195			626,727

Equity:
Class A Common Stock, par value $0.001, 600,000,000 shares authorized, 113,953,554 and 116,562,252 shares issued and outstanding at December 31, 2024 and 2023, respectively		114			117
Class B Common Stock, par value $0.00001, 65,000,000 shares authorized, 39,439,198 and 39,375,806 shares issued and outstanding, respectively, at December 31, 2024, and 39,762,700 and 39,168,047 shares issued and outstanding, respectively, at December 31, 2023		—			—
Additional paid-in capital		1,085,445			1,086,581
Accumulated other comprehensive (deficit) income		(610	)		2,109
Accumulated deficit		(640,574	)		(227,450	)
Noncontrolling interests		162,819			337,817
Total equity		607,194			1,199,174
Total liabilities and equity	$	1,089,389		$	1,825,901

Definitive Healthcare Corp.
Consolidated Statements of Operations
(amounts in thousands, except share amounts and per share data; unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenue	$	62,288		$	65,932		$	252,202		$	251,415
Cost of revenue:
Cost of revenue exclusive of amortization ⁽¹⁾		10,967			9,447			40,684			34,740
Amortization		3,719			3,066			14,049			12,742
Gross profit		47,602			53,419			197,469			203,933
Operating expenses:
Sales and marketing ⁽¹⁾		20,372			23,605			83,807			94,534
Product development ⁽¹⁾		8,982			11,569			36,518			42,441
General and administrative ⁽¹⁾		8,503			16,567			49,267			58,861
Depreciation and amortization		9,413			9,935			37,618			39,008
Transaction, integration, and restructuring expenses		2,835			1,823			12,225			11,489
Goodwill impairment		97,060			—			688,854			287,400
Total operating expenses		147,165			63,499			908,289			533,733
Loss from operations		(99,563	)		(10,080	)		(710,820	)		(329,800	)
Other (expense) income, net:
Interest expense, net		(303	)		(125	)		(245	)		(1,559	)
Other income (expense), net		9,254			(1,982	)		77,320			23,179
Total other income (expense), net		8,951			(2,107	)		77,075			21,620
Loss before income taxes		(90,612	)		(12,187	)		(633,745	)		(308,180	)
Benefit from (provision for) income taxes		5,895			(1,175	)		42,299			18,553
Net loss		(84,717	)		(13,362	)		(591,446	)		(289,627	)
Less: Net loss attributable to noncontrolling interests		(25,642	)		(3,129	)		(178,322	)		(87,239	)
Net loss attributable to Definitive Healthcare Corp.	$	(59,075	)	$	(10,233	)	$	(413,124	)	$	(202,388	)
Net loss per share of Class A Common Stock:
Basic	$	(0.51	)	$	(0.09	)	$	(3.54	)	$	(1.79	)
Diluted	$	(0.51	)	$	(0.09	)	$	(3.54	)	$	(1.79	)
Weighted average Common Stock outstanding:
Basic		115,015,489			116,418,495			116,640,183			112,764,537
Diluted		115,015,489			116,418,495			116,640,183			112,764,537

⁽¹⁾ Amounts include equity-based compensation expense as follows:

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Cost of revenue	$	171		$	267		$	839		$	1,097
Sales and marketing		1,449			3,110			6,235			11,407
Product development		1,651			3,572			8,579			13,138
General and administrative		4,094			6,305			22,432			23,097
Total equity-based compensation expense	$	7,365		$	13,254		$	38,085		$	48,739

Definitive Healthcare Corp.
Consolidated Statements of Cash Flows
(amounts in thousands; unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Cash flows provided by (used in) operating activities:
Net loss	$	(84,717	)	$	(13,362	)	$	(591,446	)	$	(289,627	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		526			562			2,245			1,953
Amortization of intangible assets		12,606			12,439			49,422			49,797
Amortization of deferred contract costs		3,978			3,488			15,441			12,963
Equity-based compensation		7,365			13,254			38,085			48,739
Amortization of debt issuance costs		175			175			702			702
Provision for bad debt expense		—			554			947			1,374
Non-cash restructuring charges		192			—			1,239			155
Goodwill impairment charges		97,060			—			688,854			287,400
Tax receivable agreement remeasurement		(8,758	)		1,507			(76,909	)		(23,470	)
Changes in fair value of contingent consideration		1,460			302			(1,780	)		302
Deferred income taxes		(6,061	)		1,015			(42,670	)		(18,713	)
Changes in operating assets and liabilities:
Accounts receivable		(17,455	)		(18,559	)		5,693			811
Prepaid expenses and other assets		(627	)		(1,348	)		(7,832	)		(7,156	)
Deferred contract costs		(4,481	)		(5,770	)		(12,756	)		(18,790	)
Contingent consideration		—			—			(602	)		—
Accounts payable, accrued expenses, and other liabilities		(285	)		2,919			(5,458	)		1,330
Deferred revenue		7,157			7,533			(4,979	)		(6,580	)
Net cash provided by operating activities		8,135			4,709			58,196			41,190
Cash flows (used in) provided by investing activities:
Purchases of property, equipment, and other assets		(10,901	)		(594	)		(12,344	)		(2,977	)
Purchases of short-term investments		(111,634	)		(45,595	)		(304,304	)		(259,208	)
Maturities of short-term investments		96,265			100,596			303,769			275,426
Cash paid for acquisitions and investments, net of cash acquired		—			—			(13,530	)		(45,023	)
Net cash (used in) provided by investing activities		(26,270	)		54,407			(26,409	)		(31,782	)
Cash flows used in financing activities:
Repayments of term loans		(3,437	)		(3,438	)		(13,750	)		(8,594	)
Taxes paid related to net share settlement of equity awards		(278	)		(1,035	)		(7,548	)		(4,432	)
Repurchases of Class A Common Stock		(7,329	)		—			(22,366	)		—
Payments of contingent consideration		—			—			(1,000	)		—
Payments under tax receivable agreement		—			—			(6,950	)		(246	)
Payments of equity offering issuance costs		—			—			—			(30	)
Member distributions		(2,324	)		(1,589	)		(5,135	)		(12,282	)
Net cash used in financing activities		(13,368	)		(6,062	)		(56,749	)		(25,584	)
Net (decrease) increase in cash and cash equivalents		(31,503	)		53,054			(24,962	)		(16,176	)
Effect of exchange rate changes on cash and cash equivalents		(728	)		462			(636	)		218
Cash and cash equivalents, beginning of year		137,609			77,460			130,976			146,934
Cash and cash equivalents, end of year	$	105,378		$	130,976		$	105,378		$	130,976
Supplemental cash flow disclosures:
Cash paid during the period for:
Interest	$	3,310		$	3,684		$	14,196		$	14,456
Income taxes		—			—			—			136
Acquisitions:
Net assets acquired, net of cash acquired	$	—		$	—		$	13,675		$	52,678
Working capital adjustment receivable		—			—			(145	)		145
Contingent consideration		—			—			—			(7,800	)
Net cash paid for acquisitions	$	—		$	—		$	13,530		$	45,023

Supplemental disclosure of non-cash investing activities:
Capital expenditures included in accounts payable and accrued expenses and other liabilities	$	6,870		$	47		$	6,870		$	47

Definitive Healthcare Corp.
Reconciliations of Non-GAAP Financial Measures to Closest GAAP Equivalent

Reconciliation of GAAP Operating Cash Flow to Unlevered Free Cash Flow
(in thousands; unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net cash provided by operating activities	$	8,135		$	4,709		$	58,196		$	41,190
Purchases of property, equipment, and other assets		(10,901	)		(594	)		(12,344	)		(2,977	)
Interest paid in cash		3,310			3,684			14,196			14,456
Transaction, integration, and restructuring expenses paid in cash ^(a)		1,183			1,521			12,766			11,032
Earnout payment ^(b)		—			—			602			—
Other non-core items ^(c)		(3,311	)		1,803			(936	)		4,875
Unlevered Free Cash Flow	$	(1,584	)	$	11,123		$	72,480		$	68,576

(a) Transaction and integration expenses paid in cash primarily represent legal, accounting, and consulting expenses related to our acquisitions. Restructuring expenses paid in cash relate to our restructuring plans announced in the first quarter of 2024 and the first and third quarters of 2023, along with exit costs related to office relocations. (b) Earnout payment represents final settlement of contingent consideration included in cash flow from operations. (c) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations.

Reconciliation of GAAP Net Loss to Adjusted Net Income and
GAAP Operating Loss to Adjusted Operating Income
(in thousands, except per share amounts; unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Net loss	$	(84,717	)	$	(13,362	)	$	(591,446	)	$	(289,627	)
Add: Income tax (benefit) provision		(5,895	)		1,175			(42,299	)		(18,553	)
Add: Interest expense, net		303			125			245			1,559
Add: Other (income) expense, net		(9,254	)		1,982			(77,320	)		(23,179	)
Loss from operations		(99,563	)		(10,080	)		(710,820	)		(329,800	)
Add: Amortization of intangible assets acquired through business combinations		11,370			11,510			45,239			46,099
Add: Equity-based compensation		7,365			13,254			38,085			48,739
Add: Transaction, integration, and restructuring expenses		2,835			1,823			12,225			11,489
Add: Goodwill impairment		97,060			—			688,854			287,400
Add: Other non-core items		(3,311	)		1,803			(936	)		4,875
Adjusted Operating Income		15,756			18,310			72,647			68,802
Less: Interest expense, net		(303	)		(125	)		(245	)		(1,559	)
Less: Recurring income tax benefit (provision) ^(a)		60			(1,175	)		669			1,374
Less: Foreign currency gain (loss)		496			(475	)		411			(291	)
Less: Tax impacts of adjustments to net loss		(3,458	)		(5,886	)		(18,341	)		(21,633	)
Adjusted Net Income	$	12,551		$	10,649		$	55,141		$	46,693
Shares for Adjusted Net Income Per Diluted Share ^(b)		154,404,162			155,560,756			155,853,282			154,836,706
Adjusted Net Income Per Diluted Share	$	0.08		$	0.07		$	0.35		$	0.30

(a) Recurring income tax benefit (provision) excludes the income tax impact of goodwill impairment charges. (b) Diluted Adjusted Net Income Per Share is computed by giving effect to all potential weighted average Class A common stock and any securities that are convertible into Class A common stock, including Definitive OpCo units and restricted stock units. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method assuming proceeds from unrecognized compensation as required by GAAP. Fully diluted shares are 162,498,543 and 163,153,442 as of December 31, 2024 and 2023, respectively.

Reconciliation of GAAP Gross Profit and Margin to Adjusted Gross Profit and Margin
(in thousands; unaudited)

	Three Months Ended December 31,								Year Ended December 31,
		2024				2023				2024				2023
(in thousands)	Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Reported gross profit and margin	$	47,602	76	%	$	53,419	81	%	$	197,469	78	%	$	203,933	81	%
Amortization of intangible assets resulting from acquisition-related purchase accounting adjustments		2,483	4	%		2,137	3	%		9,866	4	%		9,044	4	%
Equity-based compensation costs		171	0	%		267	0	%		839	0	%		1,097	0	%
Adjusted gross profit and margin	$	50,256	81	%	$	55,823	85	%	$	208,174	83	%	$	214,074	85	%

Reconciliation of GAAP Net Loss to Adjusted EBITDA
(in thousands; unaudited)

	Three Months Ended December 31,												Year Ended December 31,
		2024						2023						2024					2023
	Amount			% of Revenue			Amount			% of Revenue			Amount			% of Revenue		Amount			% of Revenue
Net loss and margin	$	(84,717	)		(136	)%	$	(13,362	)		(20	)%	$	(591,446	)	(235	)%	$	(289,627	)	(115	)%
Interest expense, net		303			0	%		125			0	%		245		0	%		1,559		1	%
Income tax (benefit) provision		(5,895	)		(9	)%		1,175			2	%		(42,299	)	(17	)%		(18,553	)	(7	)%
Depreciation & amortization		13,132			21	%		13,001			20	%		51,667		20	%		51,750		21	%
EBITDA and margin		(77,177	)		(124	)%		939			1	%		(581,833	)	(231	)%		(254,871	)	(101	)%
Other (income) expense, net ^(a)		(9,254	)		(15	)%		1,982			3	%		(77,320	)	(31	)%		(23,179	)	(9	)%
Equity-based compensation ^(b)		7,365			12	%		13,254			20	%		38,085		15	%		48,739		19	%
Transaction, integration, and restructuring expenses ^(c)		2,835			5	%		1,823			3	%		12,225		5	%		11,489		5	%
Goodwill impairment ^(d)		97,060			156	%		—			0	%		688,854		273	%		287,400		114	%
Other non-core items ^(e)		(3,311	)		(5	)%		1,803			3	%		(936	)	(0	)%		4,875		2	%
Adjusted EBITDA and margin	$	17,518			28	%	$	19,801			30	%	$	79,075		31	%	$	74,453		30	%

(a) Primarily represents TRA liability remeasurement and foreign exchange gains and losses. (b) Equity-based compensation represents non-cash compensation expense recognized in association with equity awards made to employees and directors. (c) Transaction and integration expenses primarily represent legal, accounting, and consulting expenses and fair value adjustments for contingent consideration related to our acquisitions and strategic partnerships. Restructuring expenses relate to the 2024 Restructuring Plan and those we committed to during the first and third quarters of 2023, as well as impairment and restructuring charges related to office closures, relocations, and consolidations.

	Three Months Ended December 31,						Year Ended December 31,
(in thousands)		2024			2023			2024			2023
Merger and acquisition due diligence and transaction costs	$	919		$	1,309		$	3,329		$	5,419
Integration costs		176			129			1,115			934
Fair value adjustment for contingent consideration		1,460			302			(1,780	)		302
Restructuring charges for severance and other separation costs		88			83			8,097			4,679
Office closure and relocation restructuring charges and impairments		192			—			1,464			155
Total transaction, integration and restructuring expense	$	2,835		$	1,823		$	12,225		$	11,489

(d) Goodwill impairment charges represent non-cash, pre-tax, goodwill impairment charges. We experienced declines in our market capitalization as a result of sustained decreases in our stock price, which represented triggering events requiring our management to perform quantitative goodwill impairment tests multiple times in 2024 and during the third quarter of 2023. As a result of the impairment tests conducted in each respective period, we determined that the fair value of our single reporting unit was lower than its carrying value and, accordingly, recorded these impairment charges. (e) Other non-core items represent expenses driven by events that are typically by nature one-time, non-operational, and/or unrelated to our core operations. These expenses are comprised of non-core legal and regulatory costs isolated to unique and extraordinary litigation, legal and regulatory matters that are not considered normal and recurring business activity, including sales tax accrual adjustments inclusive of penalties and interest for sales taxes that we may have been required to collect from customers in 2024 and in certain previous years, and other non-recurring legal and regulatory matters. Other non-core items also include consulting fees and severance costs associated with strategic transition initiatives, as well as professional fees related to financing, capital structure changes, and other non-core items.

	Three Months Ended December 31,						Year Ended December 31,
(in thousands)		2024			2023			2024			2023
Non-core legal and regulatory	$	(3,438	)	$	(60	)	$	(3,439	)	$	2,370
Consulting and severance costs for strategic transition initiatives		1		$	1,977			2,219		$	1,977
Other non-core expenses		126			(114	)		284			528
Total other non-core items	$	(3,311	)	$	1,803		$	(936	)	$	4,875

MIL-OSI USA: Ernst, Miller-Meeks Expose Billion-Dollar Boondoggles

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
WASHINGTON – U.S. Senate DOGE Caucus Chair Joni Ernst (R-Iowa) is exposing more waste with her Billion Dollar Boondoggle Act that will require the disclosure of any government project that is $1 billion over budget or five years behind schedule.
“From moondoggles to off-the-rails projects, Washington can’t seem to ever make the trains run on time or on budget,” said Ernst. “Bureaucrats always find a way to pay a whole lot more for planes, trains, and automobiles—and just about everything else. I am slamming the brakes on boondoggles and bringing them to a squealing halt.”
Congresswoman Mariannette Miller-Meeks (R-Iowa) is introducing companion legislation in the House of Representatives.
“Republicans were elected on a platform to tackle waste, fraud, and abuse,” said Miller-Meeks. “As Members of Congress, we are entrusted to be stewards of taxpayer dollars and government projects that are excessively costly and delayed must be held to account. Our bill will increase transparency – along with ongoing efforts by President Trump – to ensure we aren’t wasting billions of hard-earned taxpayer dollars.
Some of the biggest government boondoggles include:
Click here to view the bill text.
Background:
Billion-dollar boondoggles and the numerous costly California crazy trains were featured in Senator Ernst’s $2 trillion roadmap that was hand delivered to Elon Musk and President-elect Trump.
Ernst’s playbook has already racked up wins for taxpayers including forcing the sale of empty buildings, getting federal employees to return to work, consolidating costly software licenses, and much more.

MIL-OSI Global: Trump mineral deal with Ukraine offers hope but little in the way of security

Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

If you want to get an idea of how Donald Trump’s mind works (and this can change from day to day, as we know), it’s worth taking a look at his TruthSocial website. As I write, beneath a video pinned to the top of his feed featuring an AI-generated vision of “Trump Gaza” (complete with casinos, shopping malls and a giant golden statue of the man himself), can be found a clue to the frenetic presidential activity of the past month.

In a post threatening legal action against any writer or publisher whose “Fake books” offends, Trump refers to himself as “a President who is being given credit for having the Best Opening Month of any President in history”. Apparently George Washington is second on that list – and, given that Potus #1 took 33 days to sign the first bill passed under the new US constitution, you could say Potus #47 has left him trailing in his wake.

Of course #47 appears to face fewer constitutional constraints than his illustrious predecessor.

Sadly, though, Trump will be unable to include in this list the deal he has reportedly just struck with Volodymyr Zelensky which swaps a share in Ukraine’s mineral wealth for an as yet unspecified security guarantee.

Precise details of this deal aren’t confirmed. But we’re told that the original US$500 billion (£394 billion) demand has been dropped in return for a share in an investment fund into which Ukraine will contribute 50% of the revenue from its mineral resources. “What better could you have for Ukraine than to be in an economic partnership with the United States?” commented US national security adviser, Mike Waltz.

Sign up to receive our weekly World Affairs Briefing newsletter from The Conversation UK. Every Thursday we’ll bring you expert analysis of the big stories in international relations.

But for the sake of social media, a deal’s a deal and can be trumpeted as such. Zelensky is heading to Washington to sign the agreement and we shall find out in due course whether or not this will assure Ukraine’s future security. There is still the actual peace deal with Russia to work out, after all.

Another landmark foreign policy deal brokered by the Trump White House was with the Taliban in 2020 and concerned the future of Afghanistan. And, as Philip A. Berry writes, Zelensky can take little comfort in that.

Berry, a research fellow at King’s College London, who has extensive experience of working with anti-narcotics agencies in Afghanistan, points to similarities in the way Trump managed negotiations with the Taliban and his deal-making with Ukraine and discussions so far with Russia. The Afghan government was largely cut out of the negotiations, as Trump has threatened to do to Ukraine with regards a peace deal. And like the current situation, Trump’s regular public utterances seriously undermined the talks. Berry concludes:

Trump’s Taliban deal excluded the US’s ally, conceded too much to an adversary, and was partly motivated by the perception of wasting American dollars in a far-off land. Unfortunately, these hallmarks are all too evident in the president’s stance on Ukraine. Zelensky can only hope that things work out better this time around.

Trust will be absolutely vital if the US and Ukraine are to conclude this agreement and, more critically, if they are to reach terms with Russia that will guarantee the “just peace deal” that Zelensky craves, writes David J. Wilcox of the University of Birmingham. Wilcox points to the relationship of trust built by Mikhail Gorbachev and Ronald Reagan in the 1980s which paved a way for a series of nuclear weapons reduction treaties between the Soviet Union and the US.

It has just been announced that preparations are being made for “expert-level” talks between the US and Russia, but, as Wilcox points out, “any negotiations to end the war will rest ultimately on those two states and their leaders”. And at present, nothing has been publicly said about whether Putin and Zelensky have even agreed to meet.

Meanwhile, what do we know about Ukraine’s mineral wealth and what sort of return Trump can expect for the US? Dafydd Townley, an expert in international security at the University of Portsmouth, stresses that Trump’s recent decision to impose punitive tariffs against Beijing has closed off China as a source of key minerals on which the US has been reliant up until now.

It’s a clue, writes Townley, as to why the US president seemed very keen on bringing his deal-making facilities to bear on Greenland, which also has large deposits of desirable minerals.

Interestingly, as Townley points out, Russia has taken control of about 20% of Ukraine’s mineral deposits under the territory it now controls (which America would be open to exploiting according to an offer made by Vladimir Putin’s aides at the recent talks in Saudi Arabia).

It’s also worth noting that Ukraine’s extraction sector has suffered over the past decade from chronic under-investment, thanks to the ongoing hostilities between Russia and Ukraine. As a result it could be some years before the US gets what it needs from the deal it has reportedly struck with Kyiv.

Three long years

Amid all the shuttle diplomacy and wheeler-dealing taking place around them, at the start of the week the embattled Ukrainian population marked the third anniversary of Russia’s full-scale invasion. They were joined by more than a dozen foreign leaders who gathered in Kyiv to express their continuing support.

As the conflict moves into its fourth year, Stefan Wolff, an international security expert at the University of Birmingham, takes a look at the broader geopolitical implications of the conflict in the era of Trump.

He sees worrying parallels with the Munich conference of 1938 which sealed Czechoslovakia’s fate. Not, as you might expect, in terms of Trump’s apparent appeasement of Putin – but because, like Munich, talks on the fate of a sovereign nation are being held without that nation being present. Wolff writes:

There is every indication that Putin is unlikely to stop in or with Ukraine. And it is worth remembering that the second world war started 11 months after Neville Chamberlain thought he had secured “peace in our time”.

This, of course, is the prospect that has both terrified and stiffened the resolve of Ukraine’s western allies. But Wolff also points to limitations in this analogy, in that he doesn’t believe that Trump is acting out of fear that he is in a weaker position than Putin, as did Neville Chamberlain and the French prime minister Édouard Daladier.

It’s rather that Trump sees himself as part of a triumvirate of world leaders, along with Putin and China’s president, Xi Jinping, who have the opportunity to carve out spheres of influence and establish a new world order based on the exercise of raw power.

Richard Youngs, meanwhile, sees the dawning of what he calls a “no world order”. Youngs, an international relations expert at the University of Warwick, sees an era of flux, where the stability of the past 80 years is disintegrating without anything stable or concrete to replace it.

Several European leaders, including Keir Starmer who is today visiting Trump in Washington, are due to meet this Sunday ahead of a bigger defence summit in Brussels next week, to continue discussions about how to respond to the changing Ukraine situation. Reports suggest a European defence bank or fund that would include the UK may be on the cards.

Youngs certainly believes that European powers will need to consider practical measures in order to bind themselves into more cohesive relationship and ensure their continuing autonomy. One of those will be in boosting their defence capabilities – something that is now gathering pace in the face of US pressure.

But more radical thinking will be needed, writes Youngs, who has coined the term “geoliberalism” as a way of visualising the sort of thinking about the values and certainties that can bind Europe together in the face of global turbulence.

Alex Titov, meanwhile, believes that for all the talk of “deals” to end the violence, both sides have their reasons for wanting to continue, given that their stated positions remain diametrically opposed and irreconcilable.

Russia’s battlefield progress, while steady, is slow and there’s no real prospect of it forcing a capitulation from Kyiv in the next 12 months. But – particularly with the radically different US position under Donald Trump, neither is there any chance of Russia being forced off the territory it has captured. Ominously, Titov concludes, this could mean that “the bloodiest battles of the war are yet to come”.

A new way of governing

After a whirlwind first month, Trump held his first cabinet meeting this week, with a special appearance from his right-hand man Elon Musk, who reportedly got to speak more than anyone else. Musk, of course, has been responsible for much of the maelstrom of activity that has caused so much disquiet and is providing a lot of work for lawyers who are pushing back against many of the new adminstration’s measures on the grounds they are unconstitutional.

Musk, Trump and his vice-president J.D. Vance have, in turn, pushed back against judges who have issued injunctions to either halt or delay some of their measures. Musk, in a fit of pique this week when three judges halted three of the administration’s policies, complained bitterly “What is the point of having democratic elections if unelected activist ‘judges’ can override the clear will of the people? Well, that’s no democracy at all!”

Stephen Lovell, professor of modern history at King’s College London, has been looking at the way that Trump and his team are attempting to bend the US constitution to their will, comparing their approach to that of Vladimir Putin. Putin, as we know, never saw a constitutional loophole he didn’t want to wriggle through or otherwise obliterate.

World Affairs Briefing from The Conversation UK is available as a weekly email newsletter. Click here to get updates directly in your inbox.

– ref. Trump mineral deal with Ukraine offers hope but little in the way of security – https://theconversation.com/trump-mineral-deal-with-ukraine-offers-hope-but-little-in-the-way-of-security-250962

MIL OSI – Global Reports –

MIL-OSI USA: VIDEO: Capito Votes to Overturn Biden–Era Natural Gas Tax

US Senate News:

Source: United States Senator for West Virginia Shelley Moore Capito
To watch Chairman Capito’s floor remarks, click here.
WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), Chairman of the Senate Environment and Public Works (EPW) Committee, voted to overturn the Biden Environmental Protection Agency’s (EPA) Waste Emissions Charge (WEC) regulation as part of the Methane Emissions Reduction Program (MERP) under the Democrats’ Inflation Reduction Act. This rule enabled the collection of the Democrats’ natural gas tax, which would hurt American energy generation, damage our economy, and be detrimental to energy jobs across our country. The Senate approved the Congressional Review Act (CRA) joint resolution of disapproval, which was introduced by U.S. Senator John Hoeven (R-N.D.) and co-sponsored by Chairman Capito, by a vote of 52-47.
Prior to the final vote on the CRA, Chairman Capito delivered remarks on the Senate floor outlining the consequences of the natural gas tax and the importance of natural gas to American energy dominance, and urged her colleagues to support the measure.
Below are the floor remarks of Chairman Shelley Moore Capito (R-W.Va.) as delivered.
“I rise today in support of my friend from North Dakota, Senator Hoeven’s, Congressional Review Act resolution to block the implementation of the Biden administration’s Waste Emissions Charge, otherwise known as the natural gas tax.
“Since the day this regulation was finalized last November, I pledged that I would work with President Trump and my colleagues in the Congress to repeal this misguided, anti-energy tax. Today in the Senate, that is exactly what we’re working to do.
“We must recognize that we are in a critical moment for American energy. The North American Energy Reliability Corporation has found that over the next 10 years, due to a rise in energy consumption and the early retirement of our existing fossil fuel generation, our country could face major electric generation and reliability concerns.
“We must take action now to ensure that our future demand is met, that the lights remain on, our homes remain warm, and our economy keeps moving for Americans all across this country. We can do this by continuing to invest in natural gas.
“Over 60% of American homes, every day, heat their homes, their water, or their food with natural gas. Natural gas is responsible for over 40% of electricity generation, and fuels more than half of our industrial sector’s process heat. While the natural gas tax fails to recognize this reality, let’s look at what is true.
“Fracking and shale gas have both revolutionized and transformed American energy, leading to lower prices, job growth, and increased American energy security. According to the Energy Information Administration, the rapid expansion of natural gas-fired power plants, in this country, has decreased the power sector’s carbon dioxide emissions by 35% over the last 25 years.
“Natural gas has the potential to further reduce American greenhouse gas emissions if we continue to increase production.
“Natural gas is affordable, reliable, and a clean source of energy, vital to our country and our economy. We should be expanding natural gas production, not restricting it. Instead, the natural gas tax will constrain American natural gas production, leading to increased energy prices and providing a boost to the production of natural gas in Russia.
“Simply put, repealing the natural gas tax is a win for our economy, a win for our natural security, and a win for our environment.
“As part of establishing this tax, the Democrats’ so-called ‘Inflation Reduction Act’ ordered the EPA to revise its subpart W requirements in order to facilitate the reporting and calculation of the tax.
“The EPA subpart W revisions blatantly disregard and overstep even the partisan mandates of the IRA, and would excessively increase the tax burden on American energy under this natural gas tax. The revised emission factors with its subpart W reporting requirements make broad assumptions about oil and gas operations and technology that will lead to inaccurate reporting for many owners and operators.
“The rule would not only radically expand the scope of emissions required to be reported by each facility under the greenhouse gas reporting program, but it also excessively expands the number of facilities that are covered by subpart W, and consequently, responsible to pay the natural gas tax.
“Due to this uninformed and artificial overestimate of U.S. methane emissions, some smaller operators, who were once below the waste emissions threshold, are now at risk of seeing their reported methane emissions inflated, and owe large sums under the natural gas tax. If not repealed, this rule will arbitrarily increase the cost and burden of reporting under subpart W, motivated by the Democrats’ interest in growing the revenues generated by their natural gas tax.
“This will make it even more difficult and expensive to produce, transport, and consume American natural gas, and in turn, will hurt both American families who rely on the energy, and the environment of the communities that we live.
“It’s important that we note that our efforts today works in tandem with this Chamber’s recently passed budget resolution. As Chairman of the Environment and Public Works Committee, I have long intended to stop the natural gas tax, and we will continue to pursue this through the reconciliation process.
“Today’s vote on the CRA provides all senators the opportunity to put our vote on record after witnessing the Biden EPA’s bait and switch on the implementation of this misguided policy.
“I encourage my colleagues to support the CRA that is central to our mission of American energy dominance, and rejects this tax that will bolster our adversaries, increase energy costs on American families, and put our energy future at risk.”

MIL-OSI Security: Indictment Returned on June 2024 Shooting in Northeast D.C.

Source: Office of United States Attorneys

Defendant Accused of Shooting Victim in the Arm While Victim Was Sitting on His Porch

WASHINGTON – Bryant Russell, 46, of Monroe, North Carolina, was indicted yesterday by a grand jury on aggravated assault while armed and other charges stemming from a shooting that occurred on June 6, 2024, in the Deanwood neighborhood of Northeast D.C., U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced.

On February 26, 2025, Russell was indicted by a grand jury in the Superior Court of the District of Columbia on charges of aggravated assault while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm (prior conviction). Russell faces a maximum of 30 years in prison if convicted of the charges. The aggravated assault charge was brought under the D.C. Council’s Secure DC Omnibus Amendment Act of 2024. The change in the law recognizes all gunshot wounds as serious bodily injury.

According to the government’s evidence, Russell fired a single gunshot from the sidewalk at the victim—who was seated on his porch, smoking—and struck the victim in the right arm.

Following the shooting, Russell fled the scene. He was arrested on June 7, 2024 and has been in custody since his arrest.

This case was investigated by the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Assistant U.S. Attorney Jacob Green. Valuable assistance was provided by Assistant U.S. Attorney Anthony Cocuzza.

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

MIL-OSI Security: Henrico man sentenced to over eight years in prison for illegally possessing Molotov cocktails

Source: Office of United States Attorneys

RICHMOND, Va. – A Henrico man was sentenced today to eight years and one month in prison for possession of destructive devices.

According to court documents, in August 2020, Xavier Louis Lopez, 25, paced through his suburban Henrico neighborhood, wielding a knife that he used to slash the tires of cars belonging to neighbors of whose political views he disapproved. When police officers located and arrested Lopez, he violently resisted, attempted to gain control of a knife, and physically assaulted the officers.

After the arrest, investigators searched Lopez’s residence and located over a thousand rounds of ammunition, more than a dozen high-capacity magazines, rifle parts, and machining tools and equipment. All firearms-related items were seized following his 2021 plea agreement related to felony vandalism charges.

After Lopez’s release from prison in November 2022, investigators recovered eight Molotov cocktails, destructive devices with Styrofoam added to the gasoline mixture inside, creating improvised napalm. Located near the Molotov cocktails was a box of 9mm hollow-point ammunition, as well as the defendant’s attempts to 3D-print the final piece of a 9mm handgun build kit he had purchased anonymously online.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. The U.S. Attorney’s Office and the FBI’s Richmond Field Office thank the Henrico County Police Department and Commonwealth’s Attorney’s Office for their assistance to the investigation.

Assistant U.S. Attorney Thomas A. Garnett and Peter S. Duffey prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-79.

MIL-OSI: Electric Hydrogen selects Ingeteam for green hydrogen projects in Europe

Source: GlobeNewswire (MIL-OSI)

DEVENS, Mass., Feb. 27, 2025 (GLOBE NEWSWIRE) — Electric Hydrogen, manufacturer of large-scale, cost-competitive electrolyzers, has selected Ingeteam, an established leader in power conversion systems with manufacturing in Europe, for its projects. Ingeteam’s best-in-class power systems have been successfully commissioned at Electric Hydrogen’s plants in San Jose, California and Devens, Massachusetts and Ingeteam will now supply rectifier systems to Electric Hydrogen for integration into its complete solution 100 megawatt (MW) electrolyzer plants in Europe.

Electric Hydrogen has a growing customer base in Europe and is committed to working with suppliers that champion the European Union’s goals of decarbonization, industrial competitiveness and technology innovation. This collaboration between the two companies ensures that the combined strength of both European and American manufacturing maintains its competitiveness in the growing clean hydrogen industry.

“Ingeteam’s power conversion technology helps us push the boundaries of performance and cost. This collaboration, which includes extensive interoperability testing, de-risks the critical interface between electrolysis and power systems in our 100MW Plant and leverages Ingeteam’s experience and scaled supply chain,” said Raffi Garabedian, CEO and Co-founder of Electric Hydrogen.

Power systems, which convert AC power to DC, comprise a significant portion of the cost of a green hydrogen plant today, creating opportunity for innovative cost-reduction. The two companies have co-optimized their respective system components to minimize integration risk within Electric Hydrogen’s 100MW plant. Through this partnership and other product innovations, Electric Hydrogen has already decreased total project costs by up to 60% compared with industry benchmarks.

“This collaboration with Electric Hydrogen allows us to apply more than 50 years’ experience in power electronics to one of the most promising emerging industries. Our combined strength will enable customers around the globe to optimize costs and increase energy independence. Our technology is purpose-built for industrial applications and we are proud to support Electric Hydrogen’s effort to drive down the cost of clean hydrogen for customers in Spain, Europe and worldwide,” said Adolfo Rebollo, Ingeteam CEO.

About Electric Hydrogen
Electric Hydrogen manufactures, delivers and commissions the world’s most powerful electrolyzers to make clean hydrogen projects economically viable today. The company’s complete 100 megawatt (MW) Plant includes all system components required to turn water and electricity into the lowest cost clean hydrogen using its proprietary advanced proton exchange membrane (PEM) technology. Electric Hydrogen has a team of more than 300 people in the United States and Europe. The company was founded in 2020 and is headquartered in Devens, Massachusetts. To learn more about how critical industries leverage Electric Hydrogen’s 100MW Plant to achieve their decarbonization and energy security objectives, visit https://eh2.com/.

Contact
V2 Communications for Electric Hydrogen
electrichydrogen@v2comms.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/58d4ba47-4892-4e5a-8b17-fab60a9b1dbf

MIL-OSI USA: Sen. Moran to Chair the Senate Commerce Subcommittee on Aviation, Space, and Innovation

US Senate News:

Source: United States Senator for Kansas – Jerry Moran

WASHINGTON – The U.S. Senate Committee on Commerce, Science, and Transportation recently announced U.S. Senator Jerry Moran (R-Kan.) will serve as the Chair of the Subcommittee on Aviation, Space, and Innovation.

“The subcommittee will work on legislation to advance policies that put safety first while bolstering innovation and efficiency,” said Sen. Moran. “Recent tragedies demonstrate that our nation’s aviation system is facing a critical inflection point, and as Chairman, I will work to make certain air travel remains the safest method of transportation. I also look forward to supporting our nation’s rapidly evolving commercial space sector by advancing policies which promote the industry’s growth and capabilities. Kansas is home to the Air Capital of the World, and my work on this subcommittee will be informed by the global aviation and aerospace companies that call our state home and the small businesses that fill critical links in our supply chains.”

The Senate Commerce Subcommittee on Aviation, Space, and Innovation has jurisdiction over the Federal Aviation Administration (FAA), National Aeronautics and Space Administration (NASA), and the civil aviation and space policy functions of the Department of Transportation, Department of Commerce and National Space Council within the Executive Office of the President.

Chairman Moran’s Priorities for the 119th Congress:

Aviation Safety: Investigating recent aviation accidents and subsequent safety reports to make certain our nation’s aviation safety regulators are equipped and able to effectively manage our air travel equipment and systems.
Oversight: Ensuring the proper implementation the FAA Reauthorization Act of 2024, which Sen. Moran helped draft and unanimously pass in both chambers of Congress, to address the current and future demands of the aviation industry.
Space Exploration: Supporting critical NASA programs, including the Artemis campaign, and prioritizing STEM education to equip the next generation to further our nation’s space goals.
Commercial Space Growth: Enabling growth in the commercial space sector, which is already supporting critical national security missions and bolstering the U.S. in our space race against China and other adversaries.

MIL-OSI USA: UConn’s Visiting Externships for Students Underrepresented in Medicine (VESUM) and its Students are Thriving

Source: US State of Connecticut

Dr. Edison Martinez Monegro, 28, hails from San Juan, Puerto Rico where he attended the University of Puerto Rico San Juan Bautista School of Medicine. He is thriving in Connecticut at UConn School of Medicine as he completes his third year of general surgery residency training.

He credits his residency success thanks to the growing Visiting Externships for Students Underrepresented in Medicine (VESUM) program at UConn School of Medicine and its strong mentorship.

UConn School of Medicine general surgery resident Dr. Edison Martinez Monegro (Courtesy of Edison).

He was just the second medical student in the new and growing VESUM program to match in a UConn residency. So far over forty students have visited UConn for externships over the past 8 years and eight have successfully matched to UConn for residency.

Surgical resident Dr. Edison Martinez Monegro at UConn John Dempsey Hospital (Tina Encarnacion/UConn Health Photo).

The VESUM program was founded and is directed by UConn’s Dr. Linda Barry, a recent recipient of the nation’s highest honor for mentorship from the President of the United States. VESUM is increasing diversity in academic medicine by offering externships to fourth-year medical students from groups underrepresented in medicine. It gives medical students a four-week insider’s view to various medical specialty fields and UConn Health before they choose their residency match.

“Edison hails from Puerto Rico and has worked diligently to come to UConn and succeed as a surgical resident,” says Barry, professor of Surgery and Public Health Sciences at UConn School of Medicine, associate dean of Office of Multicultural and Community Affairs and associate director of the UConn Health Disparities Institute. “He is the second VESUM student to match and the first student to match for surgery at UConn Health. Edison truly reflects the community we serve. I know the patients he cares for appreciate his genuine dedication and commitment.”

Martinez Monegro first learned about the VESUM program as a third-year medical student while at the University of Puerto Rico through an email his dean shared about the UConn summer scholarship rotation opportunity.

Martinez Monegro in his native Puerto Rico (Photo Courtesy of Edison).

“I applied to VESUM, and I received a letter from Dr. Barry telling me she wanted to meet with me, and I was accepted. I was super excited!” said Martinez Monegro who had his UConn VESUM externship as a rising fourth year medical student within the Division of Vascular and Endovascular Surgery at UConn Health working closely with its faculty such as Chief Dr. Kwame Amankwah and Dr. Mina Boutros. “It was a very good experience. I learned a lot I didn’t know. The UConn rotation allowed for me to have greater exposure to the field of surgery and learn more about UConn too. I also met the residency program director and even the dean of the medical school. Most importantly, I got to see other current UConn residents in action.”

He adds, “The VESUM program really prepared me for my residency. And, UConn, it just felt right for me. UConn was at the top of my list for my residency. I was excited when I got the call that I matched to UConn for general surgery.”

“I made the right choice of coming to UConn,” he says heartwarmingly. “Surgery residency is hard. You want the people around you to help you and make you feel at home. UConn does that. Dr. Barry has been amazing.”

Puerto Rico, its culture, and its people are very important to Martinez Monegro.

“Every year there are less and less physicians in Puerto Rico,” stresses Martinez Monegro, who attended as an undergraduate the University of Puerto Rico and its medical school too. “My first goal was to become a doctor to help with that shortage.”

He was inspired to go into the surgery field also by the shows he saw on TV.

At his White Coat Ceremony Dr. Martinez Monegro with his parents (Photo Courtesy of Edison).

“I was always captivated by the surgeries in TV shows. As a senior in high school I shadowed a surgeon for a full day in the OR. Spending the day, tucked into the corner of the OR, I was amazed by it all. I thought I could work here. The OR felt like home. Surgery I realized is what I have to do.”

Also, he says the Hartford area really does have it all. The Puerto Rican people of Hartford are at the heart of Martinez Monegro’s love of Connecticut too.

“What I like about my residency at UConn is that we rotate though a mix of academic and community hospitals,” he says about the five area hospitals of UConn John Dempsey Hospital, Hartford Hospital, Connecticut Children’s, St. Francis Hospital, and Hospital of Central Connecticut. “Hartford’s population is 40 percent Puerto Rican. I want to be able to practice medicine in a place where I can serve my people and speak my language of Spanish while at work.”

Martinez Monegro believes a VESUM externship rotation experience is a great way to visit and learn more about a medical or surgical field and also UConn Health just like he did.

“I learned the OR is where I like to be. It’s a long day, but I love learning, the responsibility of caring for our patients, and working with the UConn medical team. I am motivated every day to keep helping patients,” he says.

UConn resident Dr. Edison Martinez Monegro with his parents in Puerto Rico (Photo Courtesy of Edison).

He also applauds UConn School of Medicine for its longstanding work of diversifying the future health care workforce.

“UConn has done an excellent job of diversifying medicine. We have residents of all different backgrounds in our residency programs,” Martinez Monegro. “For example, I speak Spanish, so my colleagues ask me for help translating for their patients sometimes. When I need help, funny enough I first ask my fellow residents to translate for me in their languages ranging from Russian to Arabic.”

Dr. Edison Martinez Monegro (Tina Encarnacion/UConn Health Photo).

His message to those applying to residency or in the thick of residency: “Enjoy what you do! Try to find new learning opportunities in everything you do!”

MIL-OSI Security: Fairbanks Man Sentenced to Over 14 Years for Possessing Kilograms of Illegal Drugs with Intent to Distribute

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

FAIRBANKS, Alaska – A Fairbanks man was sentenced today to over 14 years in prison for possessing with intent to sell over 12 kilograms of controlled substances.

According to court documents, beginning in August 2023, law enforcement received information that Kevin Shank, 46, was selling controlled substances from his residence in Fairbanks. In February 2024, law enforcement observed an individual purchase 1.1 grams of heroin and 21 blue fentanyl pills from Shank.

On March 19, 2024, law enforcement executed a search warrant on Shank’s residence, and discovered and seized over 6.1 kilograms of methamphetamine, over 2.4 kilograms of fentanyl tablets, nearly one kilogram of fentanyl powder, nearly one kilogram of cocaine, over 1.7 kilograms of marijuana, and smaller amounts of heroin, suboxone and Xanax. They also seized seven firearms, two homemade suppressors and various ammunition, as well as over $303,000 in cash and a truck purchased with drug trafficking proceeds.

Court documents explain that most of the controlled substances were found in a secret compartment in a small side room of the residence, while several firearms were staged at entrances to the residence and the side room.

On Nov. 26, 2024, Shank pleaded guilty to one count of possession with intent to distribute. The Court also ordered Shank to serve five years on supervised release and pay a $25,000 fine as part of his sentence.

“Mr. Shank possessed roughly 22 pounds of controlled substances, including seven pounds of illicit fentanyl, intended for distribution to profit at the expense of Alaskans safety,” said First Assistant U.S. Attorney Kathryn R. Vogel for the District of Alaska. “This case marks the largest drug seizure in Fairbanks history, and we thank our law enforcement partners for their efforts. This sentence underscores our strong commitment to dismantling drug trafficking supplies and to holding those accountable who endanger our communities by trafficking illegal, dangerous drugs.”

“Drug traffickers like Mr. Shank, who profit from the pain they cause selling poison to our neighbors, pose an especially grave threat,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “The fentanyl alone seized in this case amounted to more than 85,000 potentially lethal doses. Make no mistake: If you deal drugs in Alaska, DEA and our partners will hold you accountable.”

The Drug Enforcement Administration Seattle Field Division and Fairbanks Resident Office, with assistance from the FBI Anchorage Field Office, Alaska State Troopers, Fairbanks Police Department, North Pole Police Department, North Slope Borough Police Department and Fairbanks Airport Police Department as part of the Fairbanks Area Narcotics Team (FANT), investigated the case.

Assistant U.S. Attorney Carly Vosacek prosecuted the case.

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MIL-OSI: Ninepoint Partners Announces Final February 2025 Cash Distribution for Ninepoint Cash Management Fund – ETF Series

Source: GlobeNewswire (MIL-OSI)

TORONTO, Feb. 27, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the final February 2025 cash distribution for the Ninepoint Cash Management Fund – ETF Series. The record date for the distribution is February 28, 2025. This distribution is payable on March 7, 2025.

The per-unit final February 2025 distribution is detailed below:

Ninepoint ETF Series	Ticker	Cash Distribution per unit		Notional Distribution per unit		CUSIP
Ninepoint Cash Management Fund	NSAV	$0.12085		$0.00000		65443X105

About Ninepoint Partners

Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

Sales Inquiries:

Ninepoint Partners LP
Neil Ross
416-945-6227
nross@ninepoint.com