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Category: Transport

  • MIL-OSI: Fusion Fuel Announces Decision by Nasdaq Hearings Panel

    Source: GlobeNewswire (MIL-OSI)

    DUBLIN, Feb. 06, 2025 (GLOBE NEWSWIRE) — via IBN — Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), a leading provider of comprehensive energy engineering, advisory, and supply solutions, today announced that the Nasdaq Hearings Panel has found the Company in compliance with Nasdaq Listing Rule 5550(b)(1), requiring minimum stockholders’ equity of $2,500,000, and granted the Company’s request for an exception to evidence compliance with other applicable criteria for continued listing on The Nasdaq Stock Market LLC.

    On or before June 29, 2025, the Company will be required to demonstrate compliance with Nasdaq Listing Rule 5620(a) requiring the Company to hold an annual shareholder meeting. In addition, on or before July 28, 2025, the Company will be required to demonstrate compliance with Nasdaq Listing Rule 5550(a)(2) requiring the Company to have a minimum bid price of $1.00 (the “Minimum Bid Price Requirement”). To evidence compliance with the Minimum Bid Price Requirement, the Company’s Class A Ordinary Shares must have a closing bid price at or above $1.00 per share for a minimum of 10 consecutive business days. The Nasdaq hearing on the matter was held on January 7, 2025.

    About Fusion Fuel Green plc

    Fusion Fuel Green PLC (NASDAQ: HTOO) is an emerging leader in the energy services sector, offering a comprehensive suite of energy engineering and advisory solutions through its Al Shola Gas and BrightHy brands. Al Shola Gas provides full-service industrial gas solutions, including the design, supply, and maintenance of liquefied petroleum gas (LPG) systems, as well as the transport and distribution of LPG to a broad range of customers across commercial, industrial, and residential sectors. BrightHy, the Company’s newly launched hydrogen solutions platform, focuses on delivering innovative engineering and advisory services that enable decarbonization across hard-to-abate industries.

    Learn more about Fusion Fuel by visiting our website at https://www.fusion-fuel.eu and following us on LinkedIn.

    Forward-Looking Statements

    This press release includes “forward-looking statements.” Forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target”, “may”, “intend”, “predict”, “should”, “would”, “predict”, “potential”, “seem”, “future”, “outlook” or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Fusion Fuel has based these forward-looking statements largely on its current expectations. Such forward-looking statements are subject to risks and uncertainties (including those set forth in Fusion Fuel’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission) which could cause actual results to differ from the forward-looking statements.

    Investor Relations Contact

    ir@fusion-fuel.eu

    Wire Service Contact:
    IBN
    Austin, Texas
    www.InvestorBrandNetwork.com
    512.354.7000 Office
    Editor@InvestorBrandNetwork.com

    The MIL Network –

  • MIL-OSI: H&R Block Announces Quarterly Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    KANSAS CITY, Mo., Feb. 06, 2025 (GLOBE NEWSWIRE) — H&R Block, Inc. (NYSE: HRB) (the “Company”) today announced that its Board of Directors declared a quarterly cash dividend of $0.375 cents per share, payable April 3, 2025, to shareholders of record as of March 4, 2025. H&R Block has paid quarterly dividends consecutively for over sixty years since the Company became public in 1962.

    Since 2016, the Company has grown the dividend 88%1 and has returned more than $4.4 billion to shareholders through dividends and share repurchases.

    About H&R Block
    H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time, and be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

    1 Dividend growth is calculated as percentage growth from the April 2016 dividend.

    For Further Information

    The MIL Network –

  • MIL-OSI USA: Baldwin Demands Answers from Trump Administration After Funding Blocked for Wisconsin Head Start

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) is demanding answers from the Trump Administration on why half of Wisconsin’s Head Start programs, which provide childcare and preschool education to children, were unable to access previously approved federal funding, forcing at least one program to shutter. After the Trump Administration illegally ordered a pause on previously Congressionally approved federal grants and loans, half of Wisconsin Head Start programs were locked out of systems they use to pay staff and keep operations running. 

    “Head Start is a critical lifeline for families,” wrote Senator Baldwin in a letter to the Acting Secretaries of the Department of Health and Human Services (HHS) and Head Start. “Disruptions in services impact entire communities – from the children who are unable to be in the classroom, to the parents who are unable to work due to the lack of childcare, and Head Start professionals who love their jobs but are unable to be in their classrooms. I am also deeply concerned about the impact this chaos will have on the recruitment and retention of staff at Head Start centers.”

    Last week, the Trump Administration sent a letter from the Office of Management and Budget (OMB) directing a pause on virtually all federal grants and loans, with minimal details on what programs would and would not be impacted. While the memo was later rescinded, eight Head Start programs around the state have continued to experience issues accessing their federal funding, forcing one Head Start Center in Waukesha to close last week and leaving more than 250 families without childcare.

    “It is clear that funding issues persisted even after the Administration attempted to backtrack on the OMB memo and clarify that it did not apply to Head Start programs and following federal court orders that blocked the implementation of the memo,” wrote Senator Baldwin. “I am still hearing from Head Start grantees in Wisconsin who are continuing to have problems accessing their funds. I request your immediate attention to resolve any outstanding issues for Head Start payment systems.”

    In her letter, Senator Baldwin asked Dorothy A. Fink, M.D., Acting Secretary at the Department of Health and Human Services, and Tala Hooban, Acting Director of the Office of Head Start, to immediately respond with the following: 

    • A full accounting of the directives your department and agency received from the Trump Administration regarding the initial freeze of federal funds in the OMB memo. 
    • A full accounting of the directives received from the Trump Administration regarding the disbursement of federal funds after the clarification that the freeze did not apply to Head Start programs and after federal court orders were issued blocking implementation of the OMB memo.
    • The number of Head Start grantees who were unable to access or experienced difficulties in accessing the Payment Management System – the system used to access their federal funding – on or after January 28 and the dates in which they were unable to access the system.
    • Detail the reasons as to why these users were unable to access the Payment Management System.
    • Information on what resources you need, funding or otherwise, to ensure these issues do not happen in the future.

    A full version of this letter is available here and below.

    Dear Acting Secretary Fink and Acting Director Hooban:

    I write to you out of concern for what is happening at Head Start programs in Wisconsin during the first few weeks of the Trump Administration.  After the Administration ordered a pause on federal grants and loans, half of Wisconsin Head Start programs were locked out of systems they use to pay staff and keep operations running.  A Head Start Center in Waukesha closed last week and left more than 250 families without childcare.  Still today, Head Start programs in Wisconsin are having problems accessing their funds, which raises continued uncertainty about their ability to keep their doors open.  This is unacceptable and requires your immediate attention.

    There has been a long bipartisan history of providing federal funding for Head Start.  For Fiscal Year 2024, as Chair of the Labor, Health and Human Services, Education, and Related Agencies Appropriations subcommittee, I was proud to work with my colleagues on both sides of the aisle to provide $12.3 billion for Head Start in the Further Consolidated Appropriations Act, 2024 which was signed into law by President Biden on March 23, 2024.  This carefully negotiated and bipartisan appropriation was a $275 million increase over Fiscal Year 2023 levels, which was celebrated in both red and blue states.

    Despite this history of strong bipartisan support and a clear Congressional directive, on January 28th President Trump’s Office of Management and Budget (OMB) released a memorandum (M-25-13) ordering a halt to all federal grants and loans. This memo caused widespread chaos and confusion across the federal government and impacted every state in our nation.  While I understand the Trump Administration sought to clarify that they did not intend for Head Start to be included in the funding freeze, the reality for Head Start across the country and in Wisconsin was an inability to access funding that had already been approved by Congress.

    In the wake of this chaos, I met with and heard from Head Start programs across Wisconsin about the devastating impact the unlawful federal funding freeze had on their individual programs and in our communities.  About half of the Head Start programs in Wisconsin experienced prolonged issues in accessing their funds.  When attempting to draw down these federal dollars, these programs were met with only a response that the funding was ‘pending.’

    Head Start is a critical lifeline for families.  Disruptions in services impact entire communities –

    from the children who are unable to be in the classroom, to the parents who are unable to work due to the lack of child care, and Head Start professionals who love their jobs but are unable to be in their classrooms.  I am also deeply concerned about the impact this chaos will have on the recruitment and retention of staff at Head Start centers.  Head Start programs have continued to endure staffing shortfalls which has resulted in a reduction in slots for children and the number of families being served.  Disruption and uncertainty only serves to compound staffing recruitment challenges. 

    The years before a child reaches kindergarten are among the most critical in their life.  Research has shown participating in early childhood education programs helps better prepare children for their future and can result in better grades, higher school completion rates, reduction in the criminal justice system, and greater economic self-sufficiency as adults.  This is why programs like Head Start enjoy broad bipartisan support and are so critical in ensuring that our youngest children will be prepared to succeed later in their educational careers.  We know these long-term benefits make early childhood education programs a cost-effective way to strengthen society as a whole.

    It is clear that funding issues persisted even after the Administration attempted to backtrack on the OMB memo and clarify that it did not apply to Head Start programs and following federal court orders that blocked the implementation of the memo. I am still hearing from Head Start grantees in Wisconsin who are continuing to have problems accessing their funds. I request your immediate attention to resolve any outstanding issues for Head Start payment systems.

    Additionally, I ask you to provide the following:

    • A full accounting of the directives your department and agency received from the Trump Administration regarding the initial freeze of federal funds in M-25-13 OMB memo. 
    • A full accounting of the directives received from the Trump Administration regarding the disbursement of federal funds after the clarification that the freeze did not apply to Head Start programs and after federal court orders were issued blocking implementation of the M-25-13 OMB memo.
    • The number of Head Start grantees who were unable to access or experienced difficulties in accessing the Payment Management System on or after January 28 and the dates in which they were unable to access the system.
    • Detail the reasons as to why these users were unable to access the Payment Management System.
    • Information on what resources you need, funding or otherwise, to ensure these issues do not happen in the future.

    I thank you for your attention to this matter.

    MIL OSI USA News –

  • MIL-OSI USA: Baldwin Leads Colleagues on Bill to Close Tax Loophole and Make Wall Street Pay Its Fair Share

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) led thirteen of her colleagues in introducing the Carried Interest Fairness Act to eliminate a tax loophole that benefits wealthy money managers on Wall Street. The current carried interest loophole allows investment managers to often pay almost half the tax rate compared to most other Wisconsin workers.

    “Wall Street investors should not be paying less in taxes than Wisconsin firefighters, teachers, and small business owners. But right now, the wealthiest Americans are gaming our tax system to get out of paying their fair share, passing their tax burden onto working Wisconsinites,” said Senator Baldwin. “Closing the carried interest loophole will ensure super-wealthy Americans do their part, reducing the deficit and increasing fairness in our tax code. As President Trump has previously said, this loophole is ‘unfair to American workers’ and I look forward to working with him to finally close it.”

    The carried interest loophole allows investment managers to pay the lower 23.8 percent capital gains tax rate on income received as compensation, rather than the ordinary income tax rates of up to 40.8 percent that they would pay for the same amount of wage income. The Carried Interest Fairness Act requires carried interest income to be taxed at ordinary wage rates. According to the Treasury proposal, closing this loophole will raise $6.5 billion in revenue over 10 years.

    Despite President Donald Trump previously saying, “…we will eliminate the carried interest deduction and other special interest loopholes…”  during the 2016 election, his 2017 Tax Cuts and Jobs Act “failed to eliminate [the] key deduction used by wealthy investment firms that Trump had vowed to kill,” leading PolitiFact to rate this a “Promise Broken.” Senate Republicans rejected an amendment to the tax bill by Senator Baldwin to close the loophole, which all Senate Democrats supported in 2017.

    The bill is co-sponsored by Senators Chris Van Hollen (D-MD), Patty Murray (D-WA), Brian Schatz (D-HI), Ed Markey (D-MA), Amy Klobuchar (D-MN), Tim Kaine (D-VA), Jeff Merkley (D-OR), Jack Reed (D-RI), Peter Welch (D-VT), Elizabeth Warren (D-MA), Cory Booker (D-NJ), Bernie Sanders (I-VT), and Mazie Hirono (D-HI). Representative Marie Gluesenkamp Perez (D-WA-03) also introduced this bill today in the U.S. House of Representatives.

    The legislation is endorsed by Communications Workers of America, Americans for Tax Fairness, the American Federation of Teachers (AFT), Public Citizen, American Federation of State, County and Municipal Employees (AFSCME), Alliance for Retired Americans, Americans for Financial Reform, Take on Wall Street, Patriotic Millionaires, 20/20 Vision, Main Street Alliance, American Federation of Government Employees, Small Business Minority, Economic Policy Institute, and the National Women’s Law Center.

    “The carried interest loophole is an expensive subsidy of the billionaire executives who are raiding the public purse right now to pay for their next private island,” said Porter McConnell, Senior Director of Take on Wall Street at Americans for Financial Reform. “We commend Senator Baldwin for her leadership on closing this egregious loophole so that working families can stop subsidizing ultra wealthy hedge fund and private equity executives.”

    “The carried interest loophole is an unfair Wall Street tax break that enriches billionaires who end up paying lower tax rates than teachers, nurses, and firefighters.” said Oscar Valdés Viera, research manager at Americans for Financial Reform. “We applaud Senator Baldwin for her unwavering leadership in introducing the Carried Interest Fairness Act and urge the Senate to swiftly move on this legislation.”

    “The carried interest loophole gives a class of the wealthy elite – hedge fund managers and executives – an enormous and unfair advantage by allowing them to pay a significantly lower tax rate on their compensation than working- and middle-class Americans. Senator Baldwin’s Carried Interest Fairness Act would work to close this loophole, enhancing tax fairness, narrowing the growing wealth gap, and providing crucial revenue for investments in the American people,” said Casey Conroy, Senior Fiscal Policy Analyst at 20/20 Vision.

    “Small business owners work hard every day to keep their doors open, staff on payroll and shelves stocked. Meanwhile, investment managers pay a lower tax rate than Main Street because of a ridiculous loophole. Main Street Alliance and our 30,000 members strongly support Senator Baldwin’s Carried Interest Fairness Act. Our tax code should focus on supporting the 20 million new small business owners who have started since 2020, not glitzy hedge funds,” said Richard Trent, Main Street Alliance Executive Director.

    “There are a lot of economically and morally unjustifiable tax loopholes that disproportionately benefit wealthy people like me, but the carried interest loophole may just take the cake. Ultra-wealthy hedge fund managers should not receive a tax break on the income they earn managing other people’s money, as the last time I checked, nurses don’t get a tax break on the money they make ‘managing’ people’s lives with their blood, sweat, and tears. It’s time for lawmakers to pass the Carried Interest Fairness Act and close this egregious loophole once and for all,” said Morris Pearl, Chair of the Patriotic Millionaires and a former Managing Director at BlackRock.

    “The carried interest tax loophole stands as one of the most glaring examples of how the ultra-wealthy exploit and rig our broken tax system to their advantage,” said David Kass, executive director of Americans for Tax Fairness. “It’s common sense—Wall Street hedge fund managers shouldn’t pay lower federal tax rates than nurses, teachers, and most working Americans. This change is long overdue and represents a critical step toward a fairer tax system that ensures these uber-wealthy individuals pay their fair share like everyone else.”

    “There is no reason that private equity managers, some of the wealthiest people in the country, should get away with paying lower tax rates than average families, especially as the care crisis continues to strain family budgets. Closing the carried interest loophole is an important step towards making sure the wealthiest are paying their fair share and that our tax code works for all of us, not just those at the top,” said Melissa Boteach, Vice President for Income Security and Child Care/Early Learning at the National Women’s Law Center.

    A one-pager on this legislation is available here. Bill text of this legislation is available here. 

    MIL OSI USA News –

  • MIL-OSI USA: Padilla, Judiciary Democrats Condemn Trump’s Unfit Nominee for FBI Director Kash Patel

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    Padilla, Judiciary Democrats Condemn Trump’s Unfit Nominee for FBI Director Kash Patel

    WATCH: Padilla urges Republicans to reject Patel based on alarming and radical record

    WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), a member of the Senate Judiciary Committee, joined his Democratic colleagues on the Committee in speaking out against Kash Patel’s dangerous nomination to lead the Federal Bureau of Investigation (FBI). During this morning’s Judiciary Committee business meeting, Padilla objected to Patel’s nomination and urged his Republican colleagues to do the same ahead of the Committee’s vote next week.

    Padilla raised significant concerns regarding Patel’s lack of judgement, independence, and preparedness — flaws made clear both during his nomination hearing and throughout his career. He highlighted Patel’s troubling record, including his publication of a political enemies list, threats to prosecute journalists, and his stated plan to “shut down the FBI Hoover Building on Day 1 and reopen it the next day as a museum of the ‘deep state.’”

    Padilla also denounced Patel’s reckless actions as Senior Director for Counterterrorism at the National Security Council, where he put the lives of U.S. military personnel at risk by providing false information during a high-stakes hostage rescue operation. He also slammed Patel’s opposition to background checks and his apparent support for civilian ownership of machine guns.

    The Senators reiterated calls for an additional hearing to address Patel’s misleading testimony and his involvement in the removals and investigations of career FBI employees. During Patel’s nomination hearing last week, Senator Padilla raised serious concerns about his fitness to lead the FBI independently.

    Key Excerpts:

    • In addition to a lot of the specific concerns about Kash Patel and how he would be as an FBI director, I feel compelled to remind us of the moment that we are in right now in the first few weeks of the second Trump administration — the chaos that has been created.
    • In times of chaos and crisis like this, the public deserves to see trusted leaders in the most important positions of our federal government, trusted leaders who will stand up and say “no” to a president trying to blow through the very guardrails put in place by the Constitution. So it’s in that context that makes the nomination and potential confirmation of Kash Patel even more alarming.
    • When I asked him about his thoughts on what should be commonsense gun safety policies and protocols, what his position was on things like universal background checks, he either failed to answer or chose not to answer. Poor judgment, clear lack of preparation for the position of FBI director that oversees our background check system for a reason.
    • Let alone his lack of ability or lack of willingness to serve independently. It’s not just the Department of Justice. It’s been the FBI specifically that has performed at its best when it serves the people, when it honors the Constitution, and respects the rule of law. Clearly, Kash Patel puts that secondary to his loyalty to Donald Trump.
    • It’s up to the Senate to either confirm this nominee or not. It’s clear where Senate Democrats stand. I think my biggest question is, where are Senate Republicans going to stand at this important moment in history? Will they choose the rule of law? Will they choose the Constitution? Will they choose to stay loyal to the very oath of office they’ve taken and their important advice and consent role? Or will they choose loyalty to a reckless president?

    Video of Padilla’s remarks is available here.

    MIL OSI USA News –

  • MIL-OSI USA: Padilla Introduces Resolution to Declare Racism a Public Health Crisis

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    WASHINGTON, D.C. — Today, U.S. Senators Alex Padilla (D-Calif.), Mazie Hirono (D-Hawaii), and Cory Booker (D-N.J.) introduced a Senate Resolution to declare racism a public health crisis. The resolution calls on Congress to establish a nationwide strategy to address health disparities and inequities across all sectors in society.

    “Racism and its compounding impacts have harmed the health and well-being of communities of color across America for generations,” said Senator Padilla. “Declaring racism as a public health crisis is an initial step to bring more attention to these deep-rooted inequities, but we have much more work to do to address these disparities and deliver justice for millions of Americans.”

    “This resolution is an important step toward recognizing that communities of color, particularly Black, Indigenous, and Latino communities, face disproportionate rates of chronic illness, shorter life expectancies, and increased barriers to quality health care,” said Senator Booker. “These disparities are not accidents. They are the direct result of decades of unjust policies and systems that determine whether your air or water is clean, or how close your family is to a toxic waste site. I remain committed to working with my colleagues to dismantle the systemic injustices that continue to impact the health outcomes of communities of color across America.” 

    “Racism is deadly for people of color, adversely impacting access to health care resources and disproportionately exacerbating health outcomes of marginalized communities including life expectancy, infant mortality, maternal morbidity, risk of cancer, and more,” said Senator Hirono. “The first step in addressing a crisis is naming it, which is why I am proud to reintroduce this resolution recognizing the impacts of systemic racism on the health of minority groups, and reaffirming our commitment to addressing health disparities and inequity across all communities.”

    The resolution acknowledges the history of racism and discrimination within health care and the systemic barriers that people of color continue to face when seeking care. It also highlights the effects of systemic racism on the health and wellness of communities of color, resulting in shorter life expectancy, worsened health outcomes, and increased exposure to harmful or dangerous environments. Additionally, the resolution encourages concrete action to address health disparities and inequity across all sectors in society.

    Additionally, the resolution calls on the United States Congress to: 

    • Dismantle systemic practices and policies that perpetuate racism. 
    • Advance reforms to address years of neglectful and apathetic policies that have led to poor health outcomes for members of racial and ethnic minority groups. 
    • Promote efforts to urgently address the social determinants of health for all racial and ethnic minority groups in the United States. 

    In addition to Padilla, Booker, and Hirono, the resolution was cosponsored by U.S. Senators Tammy Baldwin (D-Wis.), Richard Blumenthal (D-Conn.), Andy Kim (D-N.J.), and Ron Wyden (D-Ore.).

    Representatives Jahana Hayes (D-Conn.-05) and Delia C. Ramirez (D-Ill.-03) introduced a companion resolution in the House. 

    Full text of the resolution is available here.

    MIL OSI USA News –

  • MIL-OSI Canada: New legislation will accelerate B.C. renewable energy projects

    Source: Government of Canada regional news

    To ensure rapid permitting and robust regulation of renewable energy projects, the Province will introduce legislation in spring 2025 allowing the regulation of renewable energy projects, such as wind and solar, to move under the authority of the BC Energy Regulator (BCER). Adrian Dix, Minister of Energy and Climate Solutions, made the announcement in the presence of successful First Nations and clean-energy partners who gathered to celebrate the signing of their electricity purchase agreements (EPAs) with BC Hydro, which will generate between $5 billion and $6 billion in private capital spending throughout the province.

    The legislation will also enable the BCER to be the primary regulatory authority for authorizations associated with the construction of the North Coast Transmission Line (NCTL) and other high-voltage electricity transmission projects. This will help accelerate the expansion of British Columbia’s electricity grid and meet the demand in growth arising from critical mineral and metal mining, port electrification, hydrogen and fuel processing, and shipping projects under consideration. 

    “Along with other natural resources projects, these critical projects have been identified by the Province as priorities that are ready to move forward, with the potential to generate significant employment to support our economy in the face of potential tariffs by the U.S. government,” said Dix. “Now, with electricity purchase agreements signed by all of the wind and solar projects selected in the recent BC Hydro Call for Power and the BC Energy Regulator poised to be regulator for permitting these projects, British Columbia is on a clear trajectory to deliver the clean, affordable and reliable power people and industry need, and meaningfully grow and diversify our economy.”

    This announcement builds on the Province’s intent to exempt all future wind projects from the environmental assessment process, including the nine wind projects that are now under signed electricity purchase agreements with BC Hydro. It will create a single-window permitting process for renewable energy projects. The BC Energy Regulator will take a staged approach, focusing initially on the North Coast Transmission Line and other prescribed high-voltage transmission lines, and the wind and solar projects.

    The new legislation, to be introduced by the Ministry of Energy and Climate Solutions, will extend the BC Energy Regulator’s existing legal authorities and responsibilities to the new development activities relevant to the different energy projects.

    The BC Energy Regulator is an experienced organization that has demonstrated expertise at getting projects moving quickly, while providing robust regulatory oversight through the lifecycle of projects. This is a natural evolution of the BC Energy Regulator’s role, which initially focused on oil, gas and geothermal development, then expanded to include hydrogen, ammonia and methanol, and now to renewable energy. The BC Energy Regulator will bring its expertise and capacity to the province’s broader stewardship efforts for water, land and resources.

    “The BC Energy Regulator is committed to permitting efficiency and robust regulatory oversight of B.C.’s oil, gas and other energy resources,” said Michelle Carr, commissioner and chief executive officer, BC Energy Regulator. “With our single-window approach to permitting through the full lifecycle of development, commitment to operational excellence and stewardship in the public interest, commitment to First Nation consultation and management of land-owner interests, the BC Energy Regulator is well positioned to apply that expertise to renewables and to support the province’s transition to low-carbon energy.”

    The Province is committed to working in co-operation with First Nations partners, and is engaging with Nations across the province on the approach to the proposed legislation.

    “Designating the BCER as the single regulator for renewables helps ensure B.C. can meet its growing electricity demand and bring renewable energy projects online sooner,” said Kwatuuma Cole Sayers, executive director, Clean Energy Association of British Columbia. “In the 2024 Call for Power, 11 CEBC members, including First Nations and industry leaders, were selected as successful proponents for both wind and solar projects, demonstrating how meaningful partnerships drive major projects and deliver sustainable energy solutions. An effective regulatory framework must foster investment in these collaborations, uphold Indigenous rights and title, and maintain B.C.’s world-class environmental standards. We look forward to working alongside government, First Nations and industry to shape a clean-energy future that benefits all British Columbians.”

    The BC Energy Regulator has a team of more than 300 professionals in seven offices located throughout B.C. Subject-matter experts include biologists, engineers, hydrologists, agrologists, compliance and enforcement officers, First Nations liaison officers, heritage conservation officers and archeologists. The BC Energy Regulator will hire additional staff and subject-matter experts as authorities are added. 

    Quick Facts:

    • Under the Clean Energy Act, a renewable or clean resource means biomass, biogas, geothermal heat, hydro, solar, ocean, wind (small scale) or any other prescribed resource.
    • The new act would provide an enabling framework for government to extend the various powers and authorities of the BC Energy Regulator under the Energy Resource Activities Act through new regulations that would apply to specified transmission and generation projects. 
    • Government is not contemplating other changes to the environmental assessment triggers for renewable energy projects.
    • Environmental assessments will still be required for projects that exceed thresholds identified in the Reviewable Projects Regulation.

    Learn More:

    To learn more about the BC Energy Regulator, visit: https://www.bc-er.ca/

    MIL OSI Canada News –

  • MIL-OSI USA: Army breaks ground on state-of-the-art 6.8 mm ammunition production facility

    Source: United States Army

    INDEPENDENCE, Missouri – The U.S. Army’s Joint Program Executive Office for Armaments and Ammunition, along with the Joint Munitions Command, officially broke ground on a new 6.8 mm ammunition production facility in support of the Next Generation Squad Weapon Program at the Lake City Army Ammunition Plant on Wednesday, Feb. 5. The 6.8 mm family of ammunition, set to be produced at the new facility, will play a vital role in advancing the Army’s modernization priorities.

    The U.S. Army’s Joint Program Executive Office for Armaments and Ammunition, along with the Joint Munitions Command, officially broke ground on a new 6.8 mm ammunition production facility in support of the Next Generation Squad Weapon Program at the Lake City Army Ammunition Plant on Wednesday, Feb. 5. The 6.8 mm family of ammunition, set to be produced at the new facility, will play a vital role in advancing the Army’s modernization priorities. (Photo Credit: Courtesy: Olin Corporation) VIEW ORIGINAL

    Developed collaboratively by the JPEO A&A, the U.S. Army’s Combat Capabilities Development Command’s Armaments Center, and the Army Research Laboratory, the 6.8 mm family of ammunition is specifically engineered to maximize the performance of the XM7 Rifle and the XM250 Automatic Rifle. When fired through these Next Generation Squad Weapons, 6.8 mm rounds deliver increased range, improved accuracy, and enhanced lethality, ensuring Soldiers maintain overmatch on the battlefield.

    “It is not lost on me that victory on the battlefield begins in our production facilities,” said Maj. Gen. John T. Reim, Joint Program Executive Officer for Armaments and Ammunition. “Lake City has been central to our nation’s ammunition production since 1941, and this new facility builds on that proud and historic legacy.”

    The cutting-edge facility, which will be operated by Olin Winchester, is the culmination of an 18-month design process led by JPEO A&A with support from a diverse team of U.S. government and commercial contractors.

    Spanning 450,000 square feet, the facility will feature modern manufacturing systems

    capable of producing all components of 6.8 mm ammunition. This includes cartridge case and projectile manufacturing, energetic operations for loading and charging ammunition, product packaging, process quality controls, testing laboratories, maintenance operations and administrative areas.

    With 90% of the work supported by industries in the Kansas City region and nearly 50 local businesses involved in the construction, the new facility will strengthen the defense industrial base, create well-paying jobs, and will drive economic growth in the local community.

    Once operational, the facility will have an annual production capacity of 385 million cases, 490 million projectiles and 385 million load-assemble-pack operations for 6.8 mm ammunition. This enhanced capacity will significantly bolster U.S. munitions production, ensuring the Army maintains its readiness and ability to serve as a credible deterrent to would-be adversaries.

    JPEO A&A and the U.S. Army Combat Capabilities Command Armaments Center are headquartered at Picatinny Arsenal, New Jersey. Together, they play a critical role in developing, procuring and fielding cutting-edge armaments and ammunition, ensuring the readiness and modernization of the U.S. Army and its international partners.

    For more information, please contact Joint Program Executive Office Armaments and Ammunition’s Public Affairs Office at usarmy.pica.jpeo-aa.mbx.jpeo-aa-public-affairs@army.mil.

    MIL OSI USA News –

  • MIL-OSI USA: $9.6M in Mental Health Support for Rural Areas of NYS

    Source: US State of New York

    Governor Kathy Hochul today announced $9.6 million in state funding is available to provide additional mental health assistance services for rural areas of the state, including a program dedicated to helping farmers, agribusiness workers and their families. The State Office of Mental Health is providing $7.6 million to establish four new Critical Time Intervention teams to support individuals living with mental illness in rural areas of the state during periods of transition and $2 million for the Farmers Supporting Farmers program to help those working in agriculture to navigate the stress often associated with the industry.

    “We have an obligation to bring mental health assistance to New York’s farmers and the rural areas of our state where these supports aren’t always readily available,” Governor Hochul said. “The combined impact of the Farmers Supporting Farmers program and Critical Time Intervention teams will help bring additional mental health resources to parts of our state where behavioral health services are much needed.”

    OMH is providing $7.6 million over five years to establish two new Critical Time Intervention teams to serve counties in Western New York, and two others to serve counties in the North Country. These teams will join three others awarded last year and expected to be operational later this year, with the unique flexibility to offer support services and care coordination in rural communities.

    Each team must have a well-defined working relationship with at least one community-based hospital and be involved in discharge planning so they can provide subsequent linkages to services. These teams will continue to work with individuals to ensure that their immediate needs are met and that they remain connected to community support.

    OMH is also providing $2 million over five years for a service provider to implement the Farmers Supporting Farmers program statewide, specifically in the 44 counties that support farms and agribusinesses. The state has roughly 43,000 square miles of rural land area with about 3.4 million New Yorkers — more than 17 percent of the state’s population — living in communities considered rural.

    Farmers Supporting Farmers was developed in response to the well-documented link between economic crises and the resulting stress that puts farm workers and their families at an increased risk for poor behavioral health outcomes. The funding will provide this population technical assistance to address their business and financial needs, along with wellness support to promote improved behavioral health outcomes.

    Approximately 20 percent of rural residents aged 55 or older live with a mental health issue, according to the U.S. Department of Health and Human Services. Likewise, rural communities report significantly higher suicide rates than urban areas for both adults and youth.

    OMH Commissioner Dr. Ann Sullivan said, “Our effort to strengthen New York State’s mental health care system includes bringing services to traditionally underserved areas, which include many of our rural communities. These programs are providing critical supports to an at-risk segment of the population that might otherwise be disconnected from our system of care. Through investments like this, Governor Hochul is demonstrating her continued commitment to expanding mental health services to all New Yorkers, including traditionally underserved New Yorkers.”

    New York State Agriculture Commissioner Richard A. Ball said, “From unpredictable weather to rising costs, farmers face many challenges that are specific to the industry and can take not only a financial toll but also an emotional toll. This new program, through the Office of Mental Health and supported by the Governor, will provide invaluable mental health resources to farmers and their families, helping New York’s agricultural industry manage and better cope with uncertainty and stress for their overall health and well-being.”

    State Senator Samra G. Brouk said, “We need to ensure that gaps between need and access for mental health care are being actively addressed. Peer support in underserved areas can change lifelong outcomes for community members in crisis. Governor Hochul’s $9.6 million support for rural areas and OMH’s $7.6 million for CTI teams will support peer-driven, culturally competent responses to individuals with mental illness to keep our communities safe.”

    Assemblymember Jo Anne Simon said, “Rural communities have long suffered from sparse or non-existent mental health services. Investing in access to mental health care in rural communities is desperately needed. This funding will allow us to investigate where the need is greatest and where the barriers to treatment have been so as to improve access to quality care. I am grateful to Governor Hochul for her commitment to strengthening mental health services throughout our state,”

    Under Governor Hochul’s leadership, OMH continues to invest funding and undertake initiatives focused on improving mental health in rural areas of the state. In 2023, the agency created the position of rural behavioral health coordinator to work with the upstate regional field offices, and the state Office of Rural Health and Office of Addiction Services and Supports to identify local, state, and federal resources to address the unique needs of our rural communities.

    Last year, OMH established a new Assertive Community Treatment or ‘ACT’ team so that New Yorkers living with serious mental illness in rural areas of the state can receive critical mental health services in their community, rather than a more restrictive hospital setting. The rural ACT team is now providing around-the-clock services to individuals who need it most, bringing a person-centered, recovery-based approach to their care.

    Under Governor Hochul’s direction, OMH also reconvened the Suicide Prevention Task Force with a goal of strengthening public health approaches, enhancing health system competencies, improving data surveillance methods, and infusing cultural competency in the state’s suicide prevention strategy. Specifically, this task force has a charge to look at special populations in New York, including rural communities.

    MIL OSI USA News –

  • MIL-OSI Security: Spirit Lake Man Sentenced to Federal Prison for Second Degree Murder

    Source: Office of United States Attorneys

    Fargo – United States Attorney Mac Schneider announced that Austin Cody Littlewind, a/k/a Austin Cody Littlewind Jr., age 22, from Spirit Lake, appeared in United States District Court for the District of North Dakota in Fargo today and Chief Judge Peter D. Welte sentenced him to serve 192 months (16 years) in prison to be followed by five years of supervised release during which time Littlewind will be required to abide by a number of conditions. Littlewind had previously pleaded guilty to Second-Degree Murder within Indian country. In November of 2023, Littlewind stabbed another man to death in Fort Totten, North Dakota, after Littlewind confronted the man over $40. As part of sentence, Littlewind was also ordered to pay restitution for funeral and related expenses.

    “This crime was both extremely violent and totally pointless,” Schneider said. “While there is no undoing the tragic loss of life that occurred, we hope this sentence provides a measure of justice and reassures the community that violent criminals will be pursued, prosecuted, and sent to federal prison for their crimes. Our career prosecutors and partners at the FBI deserve credit for their successful efforts on this case and their dedication to public safety in Indian country.”

    “Senseless acts of violence have no place in our communities,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Today’s sentencing reaffirms that committing a violent crime carries serious consequences. The FBI, alongside our tribal and law enforcement partners, will continue to seek justice for victims and hold offenders accountable.”

    This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant US Attorney Lori H. Conroy.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Organizer of Nationwide Rental Car Theft Scheme Sentenced to 90 Months in Prison

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Thursday sentenced a man who organized a nationwide scheme that stole $1.17 million worth of rental cars to 90 months in prison.

    Tyrell A. Oliver, 40, of Atlanta, Georgia, was also ordered to repay the money. Oliver hatched a scheme in which he reserved luxury rental vehicles using stolen credit card information and stolen identities.  Oliver and others then picked up the rental cars by assuming the stolen identities and presenting false driver’s licenses and counterfeit credit cards at the rental location.

    Oliver began the scheme in August of 2021 by trying to steal three rental vehicles, according to a sentencing memo filed in his case. On the third attempt, staff of the rental car company suspected fraud. Oliver fled and was arrested while trying to board a flight back to Atlanta.  That arrest did not dissuade Oliver. Instead, he expanded his operation, recruiting others “to do his dirty work,” the memo says. Oliver paid his co-conspirators to fly to airports around the country, including in Florida, Georgia and North Carolina, to steal cars on his behalf.

    In all, Oliver and his co-conspirators used the stolen identities of at least 23 victims to steal 19 rental vehicles, Oliver’s plea agreement says.

    Oliver, 40, pleaded guilty in October to one count of conspiracy to commit wire fraud, three counts of wire fraud and three counts of aggravated identity theft. James E. McGhaney, 36, of New York, New York, pleaded guilty to one count of conspiracy to commit wire fraud and three counts of wire fraud. McGhaney recruited and supervised some of the other participants in the scheme, his plea agreement says.  He is scheduled to be sentenced February 19.

    Steven B. Matthews, 40, of Atlanta, pleaded guilty to three counts of wire fraud. New York residents Shawnta B. Fonseca, 34, Reginald M. Glenn, 36, Marlique J. McGhaney, 35, and Daquasia M. Robinson, 33, pleaded guilty to one count of wire fraud. Rashad Holder, 35, of New York, pleaded guilty to wire fraud conspiracy, wire fraud and aggravated identity theft.

    Holder was sentenced to 65 months in prison in December and ordered to repay $581,711. Marlique McGhaney was sentenced to a year and a day in prison and ordered to pay restitution of $237,447. Matthews was sentenced to 24 months in prison and ordered to repay $107,072. Glenn was sentenced to 13 months in prison. Fonseca and Robinson are scheduled to be sentenced in March.

    The FBI investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Louisville Man Sentenced to 3 Months Federal Incarceration and 3 Months Home Incarceration for Aiming a Laser at Police Helicopter

    Source: Office of United States Attorneys

    LOUISVILLE, KY – A Louisville man was sentenced this week to 3 months incarceration to be followed by 3 months home incarceration aiming the beam of laser at a Louisville Metropolitan Police Department.

    U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement.

    “This senseless act could easily have resulted in tragedy for the crew of the helicopter, other aircraft, and citizens on the ground,” said U.S. Attorney Bennett. “We will continue to work with our law enforcement partners to aggressively identify and charge anyone who engages in this type of criminal conduct. I commend the FBI and LMPD for their prompt investigative work in identifying and apprehending Mr. Freeman.”

    According to court documents, Justin E. Freeman, 33, of Louisville, Kentucky, was sentenced 3 months incarceration and 3 months home incarceration, followed by 2 years of supervised release, for aiming the beam of a laser at an aircraft.   On or about September 30, 2023, Freeman directed the beam of a laser at an LMPD helicopter operating in Louisville, Kentucky.

    Assistant U.S. Attorney Joshua Judd prosecuted the case.

    This case was investigated by the FBI and the Louisville Metro Police Department with assistance from the Federal Aviation Administration.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Janesville Man Sentenced to 7 Years for Cocaine Trafficking

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Taiwan Edwards, 29, Janesville, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for possessing 500 grams or more of cocaine intended for distribution. Edwards pleaded guilty to this charge on October 28, 2024.

    In October 2023, law enforcement executed a search warrant at a storage unit connected to Edwards. Officers recovered more than a kilogram of cocaine and $72,573. Officers also found six firearms, including two “ghost guns,” and ammunition. A “ghost gun” is a privately made firearm that does not have a serial number.

    At sentencing, Judge Peterson described the storage unit as a “mini armory,” and noted that Edwards had engaged in a “very substantial” amount of drug trafficking.

    The charge against Edwards was the result of an investigation conducted by the Janesville Police Department and the Wisconsin Department of Criminal Investigation. Assistant U.S. Attorney Megan R. Stelljes prosecuted this case. 

    MIL Security OSI –

  • MIL-OSI Security: Laredo felon guilty in conspiracy to smuggle hundreds of aliens

    Source: Office of United States Attorneys

    Second man also convicted in one underlying offense involving 101 people in locked trailer

    LAREDO, Texas – A 34-year-old Laredo man has admitted guilt in a multi-year conspiracy to smuggle aliens for financial gain, announced U.S. Attorney Nicholas J. Ganjei.

    Since March 2023, Danny Nunez operated and coordinated an organization in Laredo that smuggled and harbored hundreds of aliens.

    The investigation tied Nunez to coordinating numerous smuggling events such as one involving over 100 aliens Dec. 2, 2023. On that date, law enforcement observed several people being loading into a white trailer in a warehouse parking lot. A subsequent search resulted in the discovery of 101 aliens locked inside the trailer, including 12 unaccompanied children. Multiple people reported they had difficulty breathing and feared for their life due to the conditions in the trailer.

    Juan Manuel Aguirre, 49, Laredo, pleaded guilty to conspiracy to smuggle aliens in the United States, admitting his role in the transportation and smuggling of this group.

    At the time of Nunez’s arrest, authorities also conducted a search of his residence resulting in the seizure of cell phones and ledgers documenting the aliens Nunez and others had smuggled over the course of the conspiracy. They also found over $36,000 in resulting proceeds and two illegal aliens on the premises.

    “The road to a secure border runs through the Southern District of Texas,” said Ganjei. “Human smuggling is a terrible practice, one that the Department is focused on eradicating. My advice to those in the human smuggling business is to find a new line of work.”

    Both Nunez and Aguirre face up to 10 years in prison for conspiracy to smuggle aliens in the United States. They could also be ordered to pay up to $250,000 in fines. 

    They will remain in custody pending sentencing.

    Homeland Security Investigations, FBI, Texas Department of Public Safety. and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, the Laredo Police Department, Drug Enforcement Administration and Webb County Sheriff’s Office. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage. 

    Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI: IBEX Reports Record Quarterly Revenue and Strong EPS

    Source: GlobeNewswire (MIL-OSI)

    • Quarterly revenue grew 6.1% versus prior year quarter – highest growth in 9 quarters
    • Strong adjusted EBITDA margin expansion year-over-year – 10 out of the last 11 quarters
    • Adjusted EPS of $0.59 – an increase of 36% to prior year quarter
    • Raises guidance on revenue and lower end of EBITDA range
    • Repurchased approximately 3.6 million shares from TRGI during the second quarter of fiscal year 2025, representing 21% of our shares outstanding and eliminating controlled company status

    WASHINGTON, Feb. 06, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”), a leading provider in global business process outsourcing and end-to-end customer engagement technology solutions, today announced financial results for its second fiscal quarter ended December 31, 2024.

      Three months ended
    December 31,    		   Six months ended
    December 31,
    ($ millions, except per share amounts)   2024       2023     Change     2024       2023     Change
    Revenue $ 140,682     $ 132,634     6.1 %   $ 270,399     $ 257,243     5.1 %
    Net income $ 9,268     $ 6,075     52.6 %   $ 16,799     $ 13,500     24.4 %
    Net income margin   6.6 %     4.6 %   200bps     6.2 %     5.2 %   100bps
    Adjusted net income (1) $ 9,615     $ 8,024     19.8 %   $ 18,647     $ 15,598     19.5 %
    Adjusted net income margin (1)   6.8 %     6.0 %   80bps     6.9 %     6.1 %   80bps
    Adjusted EBITDA (1) $ 16,537     $ 14,324     15.4 %   $ 32,125     $ 28,035     14.6 %
    Adjusted EBITDA margin (1)   11.8 %     10.8 %   100bps     11.9 %     10.9 %   100bps
    Earnings per share – diluted (2) $ 0.57     $ 0.33     73.6 %   $ 1.00     $ 0.72     38.0 %
    Adjusted earnings per share – diluted (1,2) $ 0.59     $ 0.44     36.3 %   $ 1.11     $ 0.84     32.5 %
                           
    (1)See accompanying Exhibits for the reconciliation of each non-GAAP measure to its most directly comparable GAAP measure.
    (2)The current period percentages are calculated based on exact amounts, and therefore may not recalculate exactly using rounded numbers as presented.
     

    “Coming off an outstanding start to fiscal year 2025, I am thrilled to report another quarter of record financial results,” said Bob Dechant, ibex CEO. “Q2 saw our highest revenue growth for ibex in two years with revenues growing over 6%. Our growth continues to be driven by winning new clients and increasing market share within our embedded base clients. These key wins resulted in 14% revenue growth in our most profitable offshore regions. I am also excited to report that we have continued to add key AI opportunity wins that will be deployed in the second half of the year that are expected to drive accretive revenue and margin.”

    “Q2 fiscal year 2025 was a strong quarter on all profitability metrics as adjusted EPS grew 36%, adjusted EBITDA grew 15%, and adjusted net income increased 20%, compared to prior year quarter,” added Dechant. “Beyond this, over the last three months we completed a number of important strategic actions, highlighted by the $70 million share repurchase from The Resource Group International Limited (“TRGI”) in November, which has numerous benefits including removing our controlled company status, the additions of JJ Zhuang and Patrick McGinnis to our Board of Directors, and the most recent addition to our Board in January, Karen Batungbacal.”

    Second Quarter Financial Performance
    Revenue

    • Revenue of $140.7 million, an increase of 6.1% from $132.6 million in the prior year quarter. Growth in HealthTech (+31.2%), Travel, Transportation and Logistics (+16.7%), and Retail & E-commerce (+4.4%), was partially offset by declines in the FinTech vertical (-14.7%).

    Net Income and Earnings Per Share

    • Net income increased to $9.3 million compared to $6.1 million in the prior year quarter. Diluted earnings per share increased to $0.57 compared to $0.33 in the prior year quarter. The increases were primarily the result of the impact of revenue growth particularly in our higher margin offshore regions, improved gross margin performance, and fewer diluted shares outstanding compared to the prior year quarter.
    • Net income margin increased to 6.6% compared to 4.6% in the prior year quarter.
    • Non-GAAP adjusted net income increased to $9.6 million compared to $8.0 million in the prior year quarter (see Exhibit 1 for reconciliation).
    • Non-GAAP adjusted diluted earnings per share increased to $0.59 compared to $0.44 in the prior year quarter (see Exhibit 1 for reconciliation). The increase per share was primarily attributable to the impact of higher revenue, improved operating margins and a lower share count.

    Non-GAAP adjusted EBITDA

    • Adjusted EBITDA increased to $16.5 million compared to $14.3 million in the prior year quarter (see Exhibit 2 for reconciliation).
    • Adjusted EBITDA margin increased to 11.8% compared to 10.8% in the prior year quarter (see Exhibit 2 for reconciliation).

    Cash Flow and Balance Sheet

    • Repurchased approximately 3.6 million shares from TRGI for an aggregate price of $70 million during the second quarter of fiscal 2025.
    • Capital expenditures were $4.3 million compared to $2.9 million in the prior year quarter. The increase in capital expenditures during this quarter was driven by capacity expansion to meet growing demand in our offshore and nearshore regions.
    • Cash flow from operating activities was $1.1 million compared to $(1.6) million in the prior year quarter. Free cash flow was $(3.2) million compared to $(4.5) million in the prior year quarter (see Exhibit 3 for reconciliation).
    • Net debt was $13.7 million compared to net cash of $61.2 million as of June 30, 2024 (see Exhibit 4 for reconciliation). The utilization of cash and debt is primarily attributable to the share repurchase from TRGI.

    “We achieved strong top and bottom line second quarter results. We accelerated our top-line momentum with over 6% revenue growth, driven by new client wins over the last year and continued expansion of our embedded client base made possible by our strong service delivery,” said Taylor Greenwald, CFO of ibex.

    “Our profitability continues to improve, where for 10 of the last 11 quarters we have delivered year-over-year adjusted EBITDA margin expansion, enabling strategic investments in AI capabilities and sales resources. These results instill continued confidence in the execution of our strategy throughout 2025, enabling us to raise our fiscal year guidance and continue to return value to shareholders.”

    Raised Fiscal Year 2025 Guidance

    • Revenue is expected to be in the range of $525 to $535 million versus a previous range of $515 to $525 million.
    • Adjusted EBITDA is expected to be in the range of $68 to $69 million versus a previous range of $67 to $69 million.
    • Capital expenditures are expected to remain in the range of $15 to $20 million.

    Conference Call and Webcast Information
    IBEX Limited will host a conference call and live webcast to discuss its second quarter of fiscal year 2025 financial results at 4:30 p.m. Eastern Time today, February 6, 2025. We will also post to this section of our website the earning slides, which will accompany our conference call and live webcast, and encourage you to review the information that we make available on our website.

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

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

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

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

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

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

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

    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Balance Sheets
    (Unaudited)
    (in thousands)

      December 31,
    2024    		   June 30,
    2024
    Assets      
    Current assets      
    Cash and cash equivalents $ 20,206     $ 62,720  
    Accounts receivable, net   120,581       98,366  
    Prepaid expenses   6,905       7,712  
    Due from related parties   317       192  
    Tax advances and receivables   8,968       9,080  
    Other current assets   2,039       1,888  
    Total current assets   159,016       179,958  
           
    Non-current assets      
    Property and equipment, net   32,168       29,862  
    Operating lease assets   54,057       59,145  
    Goodwill   11,832       11,832  
    Deferred tax asset, net   5,052       4,285  
    Other non-current assets   10,373       8,822  
    Total non-current assets   113,482       113,946  
    Total assets $ 272,498     $ 293,904  
           
    Liabilities and stockholders’ equity      
    Current liabilities      
    Accounts payable and accrued liabilities $ 19,924     $ 16,719  
    Accrued payroll and employee-related liabilities   33,278       30,674  
    Current deferred revenue   7,223       4,749  
    Current operating lease liabilities   12,208       12,051  
    Current maturities of long-term debt   8,217       660  
    Convertible debt   25,000       —  
    Due to related parties   149       60  
    Income taxes payable   4,643       6,083  
    Total current liabilities   110,642       70,996  
           
    Non-current liabilities      
    Non-current deferred revenue   1,119       1,128  
    Non-current operating lease liabilities   48,286       53,441  
    Long-term debt   695       867  
    Other non-current liabilities   2,819       1,673  
    Total non-current liabilities   52,919       57,109  
    Total liabilities   163,561       128,105  
           
    Stockholders’ equity      
    Common stock   1       2  
    Additional paid-in capital   212,116       210,200  
    Treasury stock   (101,606 )     (25,367 )
    Accumulated other comprehensive loss   (7,250 )     (7,913 )
    Retained earnings / (deficit)   5,676       (11,123 )
    Total stockholders’ equity   108,937       165,799  
    Total liabilities and stockholders’ equity $ 272,498     $ 293,904  

    14IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Comprehensive Income
    (Unaudited)
    (in thousands, except per share data)

      Three Months Ended December 31,   Six Months Ended December 31,
        2024       2023       2024       2023  
    Revenue $ 140,682     $ 132,634     $ 270,399     $ 257,243  
                   
    Cost of services (exclusive of depreciation and amortization presented separately below)   98,762       95,884       188,803       184,080  
    Selling, general and administrative   25,706       24,857       51,921       47,897  
    Depreciation and amortization   4,286       4,946       8,655       9,988  
    Total operating expenses   128,754       125,687       249,379       241,965  
    Income from operations   11,928       6,947       21,020       15,278  
                   
    Interest income   311       512       894       1,098  
    Interest expense   (620 )     (111 )     (782 )     (215 )
    Income before income taxes   11,619       7,348       21,132       16,161  
                   
    Provision for income tax expense   (2,351 )     (1,273 )     (4,333 )     (2,661 )
    Net income $ 9,268     $ 6,075     $ 16,799     $ 13,500  
                   
    Other comprehensive income              
    Foreign currency translation adjustments $ (911 )   $ 679     $ 477     $ (22 )
    Unrealized (loss) / gain on cash flow hedging instruments, net of tax   (193 )     395       186       201  
    Total other comprehensive (loss) / income   (1,104 )     1,074       663       179  
    Total comprehensive income $ 8,164     $ 7,149     $ 17,462     $ 13,679  
                   
    Net income per share              
    Basic $ 0.61     $ 0.34     $ 1.05     $ 0.75  
    Diluted $ 0.57     $ 0.33     $ 1.00     $ 0.72  
                   
    Weighted average common shares outstanding              
    Basic   15,126       17,885       16,007       18,084  
    Diluted   16,456       18,440       16,977       18,667  

    IBEX LIMITED AND SUBSIDIARIES
    Consolidated Statements of Cash Flows
    (Unaudited)
    (in thousands)

      Three Months Ended December 31,   Six Months Ended December 31,
        2024       2023       2024       2023  
    CASH FLOWS FROM OPERATING ACTIVITIES              
    Net income $ 9,268     $ 6,075     $ 16,799     $ 13,500  
    Adjustments to reconcile net income to net cash provided by operating activities:              
    Depreciation and amortization   4,286       4,946       8,655       9,988  
    Noncash lease expense   3,083       3,297       6,409       6,522  
    Warrant contra revenue   —       307       —       594  
    Deferred income tax   (637 )     52       (767 )     296  
    Share-based compensation expense   1,235       1,427       1,905       2,275  
    Allowance of expected credit losses   240       (5 )     323       6  
    Change in assets and liabilities:              
    Increase in accounts receivable   (14,856 )     (14,544 )     (22,505 )     (18,336 )
    Decrease / (increase) in prepaid expenses and other current assets   722       (936 )     (1,013 )     (2,192 )
    (Decrease) / increase in accounts payable and accrued liabilities   (1,496 )     338       3,078       544  
    Increase in deferred revenue   2,386       673       2,465       301  
    Decrease in operating lease liabilities   (3,090 )     (3,267 )     (6,446 )     (6,451 )
    Net cash inflow / (outflow) from operating activities   1,141       (1,637 )     8,903       7,047  
                   
    CASH FLOWS FROM INVESTING ACTIVITIES              
    Purchase of property and equipment   (4,319 )     (2,892 )     (7,949 )     (4,944 )
    Net cash outflow from investing activities   (4,319 )     (2,892 )     (7,949 )     (4,944 )
                   
    CASH FLOWS FROM FINANCING ACTIVITIES              
    Proceeds from line of credit   9,100       59       9,160       96  
    Repayments of line of credit   (1,600 )     (59 )     (1,660 )     (148 )
    Proceeds from the exercise of options   342       6       724       11  
    Principal payments on finance leases   (182 )     (116 )     (353 )     (204 )
    Purchase of treasury shares   (46,562 )     (8,442 )     (51,369 )     (10,274 )
    Net cash outflow from financing activities   (38,902 )     (8,552 )     (43,498 )     (10,519 )
    Effects of exchange rate difference on cash and cash equivalents   (19 )     68       30       3  
    Net decrease in cash and cash equivalents   (42,099 )     (13,013 )     (42,514 )     (8,413 )
    Cash and cash equivalents, beginning   62,305       62,029       62,720       57,429  
    Cash and cash equivalents, ending $ 20,206     $ 49,016     $ 20,206     $ 49,016  
                   
                   

    IBEX LIMITED AND SUBSIDIARIES
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

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

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

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

      Three Months Ended December 31, Six Months Ended December 31,
    ($000s, except per share amounts)   2024       2023       2024       2023  
    Net income $ 9,268     $ 6,075     $ 16,799     $ 13,500  
    Net income margin   6.6 %     4.6 %     6.2 %     5.2 %
                   
    Warrant contra revenue   —       307       —       594  
    Foreign currency (gain) / loss   (912 )     697       545       (100 )
    Share-based compensation expense   1,235       1,427       1,905       2,275  
    Total adjustments $ 323     $ 2,431     $ 2,450     $ 2,769  
    Tax impact of adjustments1   24       (482 )     (602 )     (671 )
    Adjusted net income $ 9,615     $ 8,024     $ 18,647     $ 15,598  
    Adjusted net income margin   6.8 %     6.0 %     6.9 %     6.1 %
                   
    Diluted earnings per share $ 0.57     $ 0.33     $ 1.00     $ 0.72  
    Per share impact of adjustments to net income   0.02       0.11       0.11       0.11  
    Adjusted earnings per share $ 0.59     $ 0.44     $ 1.11     $ 0.84  
                   
    Weighted average diluted shares outstanding   16,456       18,440       16,977       18,667  
                   
                   

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

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

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

      Three Months Ended December 31, Six Months Ended December 31,
    ($000s)   2024       2023       2024       2023  
    Net income $ 9,268     $ 6,075     $ 16,799     $ 13,500  
    Net income margin   6.6 %     4.6 %     6.2 %     5.2 %
                   
    Interest expense   620       111       782       215  
    Income tax expense   2,351       1,273       4,333       2,661  
    Depreciation and amortization   4,286       4,946       8,655       9,988  
    EBITDA $ 16,525     $ 12,405     $ 30,569     $ 26,364  
    Interest income   (311 )     (512 )     (894 )     (1,098 )
    Warrant contra revenue   —       307       —       594  
    Foreign currency (gain) / loss   (912 )     697       545       (100 )
    Share-based compensation expense   1,235       1,427       1,905       2,275  
    Adjusted EBITDA $ 16,537     $ 14,324     $ 32,125     $ 28,035  
                   
    Adjusted EBITDA margin   11.8 %     10.8 %     11.9 %     10.9 %
                   
                   

    EXHIBIT 3: Free cash flow

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

      Three Months Ended December 31, Six Months Ended December 31,
    ($000s)   2024       2023       2024     2023
    Net cash provided by operating activities $ 1,141     $ (1,637 )   $ 8,903   $ 7,047
    Less: capital expenditures   4,319       2,892       7,949     4,944
    Free cash flow $ (3,178 )   $ (4,529 )   $ 954   $ 2,103

    EXHIBIT 4: Net (debt) / cash

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

      December 31,   June 30,
    ($000s)   2024       2024
    Cash and cash equivalents $ 20,206     $ 62,720
           
    Debt      
    Current $ 8,217     $ 660
    Convertible debt   25,000       —
    Non-current   695       867
    Total debt $ 33,912     $ 1,527
    Net (debt) / cash $ (13,706 )   $ 61,193

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Q2’25 Financial Results and Recent Business Highlights

    • Revenue of $267.2 million
    • GAAP gross margin of 45.7 percent
    • Non-GAAP gross margin of 53.6 percent
    • GAAP diluted earnings per share of $0.05
    • Non-GAAP diluted earnings per share of $0.92
    • Signed a new agreement with Broadcom, accelerating our Edge AI strategy
    • Repurchased approximately one million shares for $74.5 million

    SAN JOSE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Synaptics Incorporated (Nasdaq: SYNA) today reported financial results for its second quarter of fiscal 2025 ended December 28, 2024.

    Net revenue for the second quarter of fiscal 2025 was $267.2 million. GAAP net income for the second quarter of fiscal 2025 was $1.8 million, or $0.05 per diluted share. Non-GAAP net income for the second quarter of fiscal 2025 was $36.6 million, or $0.92 per diluted share.

    “We delivered another solid quarter, marking our third consecutive quarter of both sequential and year-over-year revenue growth. Core IoT products grew 63% year-over-year in the second quarter—a testament to our leadership in this rapidly expanding market. Additionally, our strategic transaction with Broadcom further strengthens our Core IoT position. This agreement, coupled with our ongoing organic growth, increases my confidence in the company’s long-term growth potential,” said Ken Rizvi, Synaptics’ Interim CEO and Chief Financial Officer.

    Business Outlook
    Ken Rizvi, added, “We are seeing stable to improving trends in most of our end markets. While the fiscal third quarter is down sequentially due to seasonality, our guidance reflects continued year-over-year growth in our business. Our strong balance sheet and positive cash flow, positions us to capitalize on both organic and inorganic growth opportunities, while also returning capital to shareholders through share buybacks.”

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

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

           
      GAAP Non-GAAP Adjustment Non-GAAP
           
    Revenue $265M ± $15M N/A N/A
           
    Gross Margin* 45.2 percent ±
    2.0 percent    		 $22M ± $1M 53.5 percent ± 1.0 percent
           
    Operating Expense** $141M ± $3M $40M ± $1M $101M ± $2M
           
    Earnings (loss) per share*** ($0.47) ± $0.30 $1.32 ± $0.10 $0.85 ± $0.20
           
    * Projected Non-GAAP gross margin excludes $20.0 to $22.0 million acquisition and integration-related costs and $1.0 million share-based compensation.
    ** Projected Non-GAAP operating expense excludes $34.0 to $35.0 million share-based compensation, $1.0 to $2.0 million restructuring costs, and $4.0 million acquisition and integration related costs.
    *** Projected Non-GAAP earnings (loss) per share excludes $0.89 to $0.92 share-based compensation, $0.03 to $0.05 restructuring costs, $0.60 to $0.65 acquisition and integration related costs, and ($0.20) other non-cash and Non-GAAP tax adjustments.

    Our outlook incorporates the effects of the company’s recent asset acquisition from Broadcom. However, the company has not completed its assessment of the provisional fair values of the assets and liabilities, and therefore, our GAAP outlook does not reflect the impact of any differences between the carrying values and fair values of Broadcom’s assets or liabilities, including share-based compensation and the impact of amortization of any identifiable intangible assets.

    Earnings Call and Supplementary Materials
    The Synaptics second quarter fiscal 2025 teleconference and webcast is scheduled to begin at 2:00 p.m. PT (5:00 p.m. ET), on Thursday, February 6, 2025, during which the company may discuss forward-looking information.

    Speaker:

    • Ken Rizvi, Interim CEO and Chief Financial Officer

    To participate on the live call, analysts and investors should pre-register at Synaptics Q2 FY2025 Earnings Call Registration.
    https://register.vevent.com/register/BI158a46a65d6743c6b0846d8242dcea87. Supplementary slides, a copy of the prepared remarks, and a live and archived webcast of the conference call will be accessible from the “Investor Relations” section of the company’s website at https://investor.synaptics.com/.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Cautionary Statement Regarding Forward-Looking Statements
    This press release contains statements that are not historical facts but rather forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the company’s current expectations and projections relating to its financial condition, results of operations, including the company’s financial guidance for third quarter fiscal 2025, plans, objectives, future performance and business, including the expected benefits from the transaction with Broadcom. Such forward-looking statements may include words such as “expect,” “anticipate,” “intend,” “believe,” “estimate,” “plan,” “target,” “strategy,” “continue,” “may,” “will,” “should,” variations of such words, or other words and terms of similar meaning. All forward-looking statements are based upon the company’s current expectations or various assumptions. The company’s expectations and assumptions are expressed in good faith, and the company believes there is a reasonable basis for them. However, there can be no assurance that such forward-looking statements will materialize or prove to be correct as forward-looking statements are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual future results, performance or achievements to differ materially from the future results, performance or achievements expressed in or implied by such forward-looking statements. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those set out in the forward-looking statements, including risks related to the company’s dependence on its solutions for the Core IoT and Enterprise and Automotive product applications market for a substantial portion of its revenue; the volatility of the company’s net revenue from its solutions for Core IoT and Enterprise and Automotive product applications; the company’s dependence on one or more large customers; the company’s exposure to industry downturns and cyclicality in its target markets; the company’s ability to successfully offer product solutions for new markets; the company’s expectations regarding technology and strategic investments and the anticipated timing or benefits thereof; the company’s ability to execute on its cost reduction initiatives and to achieve expected synergies and expense reductions; the company’s ability to maintain and build relationships with its customers; the company’s dependence on third parties to maintain satisfactory manufacturing yields and deliverable schedule; the company’s indemnification obligations for any third party claims; the uncertainty surrounding macroeconomic factors in the United States, and globally, impacting the supply chain environment, inflationary pressure, workforce reductions, regional instabilities and hostilities (including the conflict in the Middle East), the company’s ability to recruit and retain key personnel, the company’s ability to realize anticipated benefits from the transaction with Broadcom, the company’s ability to grow sales and expand into the serviceable wireless market as expected, and other risks as identified in the “Risk Factors,” “Management’ Discussion and Analysis of Financial Condition and Results of Operations” and “Business” sections of the company’s most recent Annual Report on Form 10-K and the company’s most recent Quarterly Report on Form 10-Q; and other risks as identified from time to time in the company’s Securities and Exchange Commission reports. For any forward-looking statements contained in this press release, the company claims ​the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and the company assumes no obligation to update publicly or revise any forward-looking statements in light of new information or future events, except as required by law.

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

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

     
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
     
      December 2024   June 2024
    ASSETS      
    Current Assets:      
    Cash and cash equivalents $ 596.1     $ 876.9  
    Accounts receivable, net   146.5       142.4  
    Inventories, net   119.5       114.0  
    Prepaid expenses and other current assets   28.4       29.0  
    Total current assets   890.5       1,162.3  
    Property and equipment, net   75.3       75.5  
    Goodwill   819.9       816.4  
    Acquired intangibles, net   242.0       288.4  
    Deferred tax asset   368.5       345.6  
    Non-current other assets   131.3       136.8  
    Total assets $ 2,527.5     $ 2,825.0  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current Liabilities:      
    Accounts payable $ 84.0     $ 87.5  
    Accrued compensation   31.2       27.4  
    Other accrued liabilities   114.6       156.3  
    Current portion of long-term debt   —       6.0  
    Total current liabilities   229.8       277.2  
    Long-term debt   832.5       966.9  
    Other long-term liabilities   89.1       114.1  
    Total liabilities   1,151.4       1,358.2  
    Stockholders’ Equity:      
    Common stock and additional paid-in capital   1,112.4       1,107.1  
    Treasury stock   (952.7 )     (878.0 )
    Retained earnings   1,216.4       1,237.7  
    Total stockholders’ equity   1,376.1       1,466.8  
    Total liabilities and stockholders’ equity $ 2,527.5     $ 2,825.0  
     
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      December   December
        2024       2023       2024       2023  
    Net revenue $ 267.2     $ 237.0     $ 524.9     $ 474.7  
    Cost of revenue   145.0       128.0       281.8       258.6  
    Gross margin   122.2       109.0       243.1       216.1  
    Operating expenses:              
    Research and development   83.3       82.0       164.6       168.5  
    Selling, general, and administrative   49.5       39.7       99.5       82.0  
    Acquired intangibles amortization (1)   3.8       3.9       7.6       9.4  
    Restructuring costs (2)   0.8       1.3       15.0       9.3  
    Total operating expenses   137.4       126.9       286.7       269.2  
    Operating loss   (15.2 )     (17.9 )     (43.6 )     (53.1 )
    Interest and other expense, net   (4.3 )     (6.1 )     (10.2 )     (11.5 )
    Loss on early extinguishment of debt   (6.5 )     —       (6.5 )     —  
    Loss before benefit from income taxes   (26.0 )     (24.0 )     (60.3 )     (64.6 )
    Benefit from income taxes   (27.8 )     (15.0 )     (39.0 )     —  
    Net income (loss) $ 1.8     $ (9.0 )   $ (21.3 )   $ (64.6 )
    Net income (loss) per share:              
    Basic $ 0.05     $ (0.23 )   $ (0.54 )   $ (1.66 )
    Diluted $ 0.05     $ (0.23 )   $ (0.54 )   $ (1.66 )
    Shares used in computing net income (loss):              
    Basic   39.7       39.2       39.7       38.9  
    Diluted   39.8       39.2       39.7       38.9  
    (1) These acquisition related costs consist primarily of amortization associated with certain acquired intangible assets.

    (2) Restructuring costs primarily include severance related costs associated with operational restructurings.    
     
    SYNAPTICS INCORPORATED
    Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures
    (In millions, except per share data)
    (Unaudited)
     
      Three Months Ended   Six Months Ended
      December   December
        2024       2023       2024       2023  
    GAAP gross margin $ 122.2     $ 109.0     $ 243.1     $ 216.1  
    Acquisition and integration related costs   20.8       14.4       41.6       32.2  
    Share-based compensation   0.3       1.1       (2.4 )     2.2  
    Non-GAAP gross margin $ 143.3     $ 124.5     $ 282.3     $ 250.5  
    GAAP gross margin – percentage of revenue   45.7 %     46.0 %     46.3 %     45.5 %
    Acquisition and integration related costs – percentage of revenue   7.8 %     6.1 %     7.9 %     6.8 %
    Share-based compensation – percentage of revenue   0.1 %     0.4 %     (0.5 %)     0.5 %
    Non-GAAP gross margin – percentage of revenue   53.6 %     52.5 %     53.8 %     52.8 %
    GAAP research and development expense $ 83.3     $ 82.0     $ 164.6     $ 168.5  
    Share-based compensation   (15.6 )     (15.5 )     (30.1 )     (30.7 )
    Non-GAAP research and development expense $ 67.7     $ 66.5     $ 134.5     $ 137.8  
    GAAP selling, general, and administrative expense $ 49.5     $ 39.7       99.5       82.0  
    Share-based compensation   (18.7 )     (12.6 )     (34.1 )     (29.5 )
    Acquisition and integration related costs   (1.4 )     —       (4.7 )     —  
    Site remediation accrual   —       (1.6 )     —       (1.6 )
    Legal settlement accruals and other   —       —       (2.2 )     —  
    Non-GAAP selling, general, and administrative expense $ 29.4     $ 25.5     $ 58.5     $ 50.9  
    GAAP operating loss $ (15.2 )   $ (17.9 )   $ (43.6 )   $ (53.1 )
    Acquisition and integration related costs   26.0       18.3       53.9       41.6  
    Share-based compensation   34.6       29.2       61.8       62.4  
    Legal settlement accruals and other   —       —       2.2       —  
    Restructuring costs   0.8       1.3       15.0       9.3  
    Site remediation accrual   —       1.6       —       1.6  
    Non-GAAP operating income $ 46.2     $ 32.5     $ 89.3     $ 61.8  
    GAAP net income (loss) $ 1.8     $ (9.0 )   $ (21.3 )   $ (64.6 )
    Acquisition and integration related costs   26.0       18.3       53.9       41.6  
    Share-based compensation   34.6       29.2       61.8       62.4  
    Restructuring costs   0.8       1.3       15.0       9.3  
    Site remediation accrual   —       1.6       —       1.6  
    Legal settlement accruals and other   —       —       2.2       —  
    Loss on early extinguishment of debt   6.5       —       6.5       —  
    Other non-cash items   0.6       0.7       1.2       1.3  
    Non-GAAP tax adjustments   (33.7 )     (19.6 )     (50.2 )     (8.8 )
    Non-GAAP net income $ 36.6     $ 22.5     $ 69.1     $ 42.8  
    GAAP net income (loss) per share $ 0.05     $ (0.23 )   $ (0.54 )   $ (1.66 )
    Acquisition and integration related costs   0.65       0.47       1.36       1.07  
    Share-based compensation   0.87       0.74       1.56       1.60  
    Restructuring costs   0.02       0.03       0.38       0.24  
    Site remediation accrual   —       0.04       —       0.04  
    Legal settlement accruals and other   —       —       0.06       —  
    Loss on early extinguishment of debt   0.16       —       0.16       —  
    Other non-cash items   0.02       0.02       0.03       0.03  
    Non-GAAP tax adjustments   (0.85 )     (0.50 )     (1.26 )     (0.23 )
    Share adjustment   —       —       (0.02 )     —  
    Non-GAAP net income per share – diluted $ 0.92     $ 0.57     $ 1.73     $ 1.09  
     
    SYNAPTICS INCORPORATED
    CONDENSED CONSOLIDATED CASH FLOWS
    (In millions)
    (Unaudited)
     
      Six Months Ended
      December
        2024       2023  
    Net loss $ (21.3 )   $ (64.6 )
    Non-cash operating items   97.3       128.3  
    Changes in working capital   (64.6 )     20.9  
    Net cash provided by operating activities   11.4       84.6  
           
    Acquisition of business, net of cash and cash equivalents acquired   (0.8 )     —  
    Purchase of intangible assets   —       (13.5 )
    Purchases of short-term investments   —       (16.6 )
    Advance payment on intangible assets   —       (116.5 )
    Net proceeds from maturities and sales of short-term investments and other   —       23.9  
    Purchases of property and equipment   (13.8 )     (17.1 )
    Net cash used in investing activities   (14.6 )     (139.8 )
           
    Proceeds from issuance of convertible senior notes, net of issuance costs   439.5       —  
    Payment of debt issuance costs on convertible senior notes and revolving credit facility   (4.4 )     —  
    Payments for capped call transactions related to the convertible senior notes   (49.9 )     —  
    Repurchases of common stock, excluding excise taxes   (74.5 )     —  
    Equity compensation, net   (6.6 )     (21.1 )
    Repayment of debt   (583.5 )     (4.5 )
    Other   1.2       1.7  
    Net cash used in financing activities   (278.2 )     (23.9 )
    Effect of exchange rate changes on cash and cash equivalents   0.6       0.5  
    Net decrease in cash and cash equivalents   (280.8 )     (78.6 )
    Cash and cash equivalents, beginning of period   876.9       924.7  
    Cash and cash equivalents, end of period $ 596.1     $ 846.1  

    The MIL Network –

  • MIL-OSI: CarGurus To Report Fourth Quarter and Full-Year 2024 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    BOSTON, Feb. 06, 2025 (GLOBE NEWSWIRE) — CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, announced it will issue a press release reporting financial results for the fourth quarter and fiscal year ended December 31, 2024, after the close of the market on February 20, 2025.

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

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

    About CarGurus, Inc.

    CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S. 1

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

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

    CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks, and registered trademarks are the property of their respective owners.

    1Similarweb: Traffic Report [Cars.com, Autotrader, TrueCar, CARFAX Listings (defined as CARFAX Total visits minus Vehicle History Reports traffic)], Q3 2024, U.S.

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

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

    The MIL Network –

  • MIL-OSI: Vicor Corporation to Hold Fourth Quarter Earnings Conference Call and Webcast on February 20, 2025

    Source: GlobeNewswire (MIL-OSI)

    ANDOVER, Mass., Feb. 06, 2025 (GLOBE NEWSWIRE) — Vicor Corporation (NASDAQ: VICR) announced today it will hold its fourth quarter 2024 earnings conference call and webcast on Thursday, February 20, 2025 at 5:00 p.m. (Eastern). Prepared remarks regarding the company’s financial and operational results for the three and twelve months ended December 31, 2024 will be followed by a question and answer period with Patrizio Vinciarelli, Chief Executive Officer, Jim Schmidt, Chief Financial Officer, and Phil Davies, Corporate Vice President, Global Sales and Marketing.

    Results for the fourth quarter will be released over GlobeNewswire at the close of the NASDAQ Market Session on February 20, 2025, and the press release and a summary of the company’s financial statements will be available shortly thereafter on the Investor Relations page of Vicor’s website.

    Vicor encourages investors and analysts who intend to ask questions via the conference call to register with Notified, the service provider hosting the conference call. Those registering on Notified’s website will receive dial-in info and a unique PIN to join the call as well as an email confirmation with the details. Registration may be completed at any time prior to 5:00 p.m. on February 20, 2025.

    For those parties interested in listen-only mode, the conference call will be webcast via a link that will be posted on the Investor Relations page of Vicor’s website prior to the conference call. Please access the website at least 15 minutes prior to the conference call to register and, if necessary, download and install any required software.

    For those who cannot participate in the live conference call, a webcast replay of the conference call will also be available on the Investor Relations page of Vicor’s website.

    About Vicor

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

    www.vicorpower.com

    For further information contact:
    Vicor Corporation
    James F. Schmidt
    Chief Financial Officer
    Office: (978) 470-2900
    Email: invrel@vicorpower.com

    The MIL Network –

  • MIL-OSI: iRhythm Technologies to Report Fourth Quarter and Full Year 2024 Financial Results on February 20, 2025

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Feb. 06, 2025 (GLOBE NEWSWIRE) — iRhythm Technologies, Inc. (NASDAQ:IRTC), a leading digital health care company focused on creating trusted solutions that detect, prevent, and predict disease, today announced that it will release financial results for the fourth quarter and full year 2024 after the close of trading on Thursday, February 20, 2025. The company’s management team will host a corresponding conference call beginning at 1:30 p.m. PT / 4:30 p.m. ET.

    Interested parties may access a live and archived webcast of the conference call on the “Quarterly Results” section of the company’s investor website at investors.irhythmtech.com.

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

    Investor Contact
    Stephanie Zhadkevich
    investors@irhythmtech.com

    Media Contact
    Kassandra Perry
    irhythm@highwirepr.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    • Second Quarter Net Revenue of $31.2 Million
    • Second Quarter GAAP EPS of ($0.06)
    • Second Quarter Non-GAAP EPS of $0.04

    IRVINE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Lantronix Inc. (NASDAQ: LTRX), a global leader of compute and connectivity for the Internet of Things (IoT) solutions enabling Artificial Intelligence (AI) Edge Intelligence, today reported results for its second quarter of fiscal 2025.

    Net revenue totaled $31.2 million, near the midpoint of the guidance range provided for the quarter.

    GAAP EPS of ($0.06), compared to ($0.07) in the prior year and $(0.07) in the prior quarter.

    Non-GAAP EPS of $0.04, compared to $0.08 in the prior year and $0.06 in the prior quarter.

    “Lantronix has the key assets in Compute and Connect to drive Edge Intelligence, and the company remains focused on three key vertical markets: Enterprise; Smart Cities including critical infrastructure; and Transportation,” said Lantronix President and CEO Saleel Awsare. “We are actively advancing Edge AI solutions, integrating the recently acquired IoT assets from Netcomm, and positioning Lantronix for exciting future growth.”

    Business Outlook

    For the third fiscal quarter of 2025, the company expects revenue in a range of $27.0 million to $31.0 million and non-GAAP EPS of $0.01 to $0.05 per share.

    Conference Call and Webcast

    Management will host an investor conference call and audio webcast on Thursday, Feb. 6, 2025, at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss its results for the second quarter of fiscal 2025 that ended Dec. 31, 2024. To access the live conference call, investors should dial 1-844-802-2442 (US) or 1-412-317-5135 (international) and indicate that they are participating in the Lantronix Q2 FY 2025 call. The webcast will be available simultaneously via the investor relations section of the company’s website.

    Investors can access a replay of the conference call starting at approximately 7:00 p.m. Pacific Time on Feb. 6, 2025, at the Lantronix website. A telephonic replay will also be available through Feb. 13, 2025, by dialing 1-877-344-7529 (US) or 1-412-317-0088 (international) or Canada toll-free at 1-855-669-9658 and entering passcode 3433776.

    About Lantronix

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

    For more information, visit the Lantronix website.

    Discussion of Non-GAAP Financial Measures

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

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

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

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

    Forward-Looking Statements

    This news release contains forward-looking statements, including statements concerning our revenue and earnings expectations for the third fiscal quarter of 2025, the market opportunities offered by the current shift towards edge computing and our positioning to capitalize on this trend, and our expectations regarding the benefits of our acquisition of Netcomm Wireless Pty Ltd. and our cost reduction initiatives. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. We have based our forward-looking statements on our current expectations and projections about trends affecting our business and industry and other future events. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experiences, or future business, financial condition, results of operations or performance, to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. Other factors which could have a material adverse effect on our operations and future prospects or which could cause actual results to differ materially from our expectations include, but are not limited to: the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to a pandemic or similar outbreak, wars and recent conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our backlog and current demand;  the impact of a pandemic or similar outbreak on our business, employees, customers, supply and distribution chains and the global economy; our ability to successfully implement our acquisition strategy or integrate acquired companies; uncertainty as to the future profitability of acquired businesses, and delays in the realization of, or the failure to realize, any accretion from acquisition transactions; acquiring, managing and integrating new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold into mature markets; our ability to develop, market, and sell new products; our ability to succeed with our new software offerings; our use of AI may result in reputational, competitive or financial harm and liability; fluctuations in our revenue due to the project-based timing of orders from certain customers; unpredictable timing of our revenues due to the lengthy sales cycle for our products and services and potential delays in customer completion of projects; our ability to accurately forecast future demand for our products; delays in qualifying revisions of existing products; constraints or delays in the supply of, or quality control issues with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our industry and resultant downward price pressure; rises in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from governmental regulatory bodies; changes in applicable U.S. and foreign government laws, regulations, and tariffs; our ability to protect patents and other proprietary rights and avoid infringement of others’ proprietary technology rights; issues relating to the stability of our financial and banking institutions and relationships; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; the impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on Sept. 9, 2024, including in the section entitled “Risk Factors” in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2024, to be filed with the SEC on Feb. 7, 2025, including in the section entitled “Risk Factors” in Item 1A of Part II of such report; and in our other public filings with the SEC. In addition, actual results may differ as a result of additional risks and uncertainties of which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

    © 2025 Lantronix Inc. All rights reserved. Lantronix is a registered trademark.

    Lantronix Investor Relations Contact:
    investors@lantronix.com

    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
     (In thousands)
           
      December 31,
    		   June 30,
        2024       2024  
    Assets      
    Current assets:      
    Cash and cash equivalents $ 19,210     $ 26,237  
    Accounts receivable, net   30,472       31,279  
    Inventories, net   29,070       27,698  
    Contract manufacturers’ receivables   3,473       1,401  
    Prepaid expenses and other current assets   3,329       2,335  
    Total current assets   85,554       88,950  
    Property and equipment, net   3,155       4,016  
    Goodwill   30,491       27,824  
    Intangible assets, net   4,910       5,251  
    Lease right-of-use assets   9,430       9,567  
    Other assets   683       600  
    Total assets $ 134,223     $ 136,208  
           
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable $ 15,975     $ 10,347  
    Accrued payroll and related expenses   2,968       5,836  
    Current portion of long-term debt, net   3,056       3,002  
    Other current liabilities   11,436       10,971  
    Total current liabilities   33,435       30,156  
    Long-term debt, net   11,630       13,219  
    Other non-current liabilities   11,245       11,478  
    Total liabilities   56,310       54,853  
           
    Commitments and contingencies      
           
    Stockholders’ equity:      
    Common stock   4       4  
    Additional paid-in capital   305,433       304,001  
    Accumulated deficit   (227,895 )     (223,021 )
    Accumulated other comprehensive income   371       371  
    Total stockholders’ equity   77,913       81,355  
    Total liabilities and stockholders’ equity $ 134,223     $ 136,208  
           
    LANTRONIX, INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
                       
                       
      Three Months Ended   Six Months Ended
      December 31,   September 30,   December 31,   December 31,
        2024       2024       2023       2024       2023  
    Net revenue $ 31,161     $ 34,423     $ 37,038     $ 65,584     $ 70,069  
    Cost of revenue   17,877       19,948       22,007       37,825       40,941  
    Gross profit   13,284       14,475       15,031       27,759       29,128  
    Operating expenses:                  
    Selling, general and administrative   8,811       9,467       10,224       18,278       19,394  
    Research and development   4,984       4,956       4,725       9,940       9,831  
    Restructuring, severance and related charges   193       900       530       1,093       550  
    Acquisition-related costs   208       29       –       237       –  
    Fair value remeasurement of earnout consideration   –       –       –       –       (9 )
    Amortization of intangible assets   1,248       1,251       1,310       2,499       2,694  
    Total operating expenses   15,444       16,603       16,789       32,047       32,460  
    Loss from operations   (2,160 )     (2,128 )     (1,758 )     (4,288 )     (3,332 )
    Interest expense, net   (126 )     (119 )     (232 )     (245 )     (570 )
    Other income (loss), net   8       (37 )     (23 )     (29 )     (4 )
    Loss before income taxes   (2,278 )     (2,284 )     (2,013 )     (4,562 )     (3,906 )
    Provision for income taxes   94       218       580       312       573  
    Net loss $ (2,372 )   $ (2,502 )   $ (2,593 )   $ (4,874 )   $ (4,479 )
    Net loss per share – basic and diluted $ (0.06 )   $ (0.07 )   $ (0.07 )   $ (0.13 )   $ (0.12 )
    Weighted-average common shares – basic and diluted   38,631       38,024       37,354       38,330       37,170  
                       
    LANTRONIX, INC.
    UNAUDITED RECONCILIATION OF NON-GAAP ADJUSTMENTS
    (In thousands, except per share data)
                       
      Three Months Ended   Six Months Ended
      December 31,   September 30,   December 31,   December 31,
        2024       2024       2023       2024       2023  
                       
    GAAP net loss $ (2,372 )   $ (2,502 )   $ (2,593 )   $ (4,874 )   $ (4,479 )
    Non-GAAP adjustments:                  
    Cost of revenue:                  
    Share-based compensation   48       64       64       112       105  
    Employer portion of withholding taxes on stock grants   2       5       1       7       5  
    Amortization of manufacturing profit in acquired inventory   –       –       189       –       506  
    Depreciation and amortization   114       123       109       237       195  
    Total adjustments to cost of revenue   164       192       363       356       811  
    Selling, general and administrative:                  
    Share-based compensation   1,044       1,126       1,628       2,170       2,901  
    Employer portion of withholding taxes on stock grants   20       78       10       98       47  
    Depreciation and amortization   348       351       338       699       672  
    Total adjustments to selling, general and administrative   1,412       1,555       1,976       2,967       3,620  
    Research and development:                  
    Share-based compensation   421       410       484       831       912  
    Employer portion of withholding taxes on stock grants   2       19       5       21       18  
    Depreciation and amortization   111       69       52       180       160  
    Total adjustments to research and development   534       498       541       1,032       1,090  
    Restructuring, severance and related charges   193       900       530       1,093       550  
    Acquisition related costs   208       29       –       237       –  
    Fair value remeasurement of earnout consideration   –       –       –       –       (9 )
    Amortization of purchased intangible assets   1,248       1,251       1,310       2,499       2,694  
    Litigation settlement cost   158       40       –       198       –  
    Total non-GAAP adjustments to operating expenses   3,753       4,273       4,357       8,026       7,945  
    Interest expense, net   126       119       232       245       570  
    Other (income) expense, net   (8 )     37       23       29       4  
    Provision for income taxes   94       218       580       312       573  
    Total non-GAAP adjustments   4,129       4,839       5,555       8,968       9,903  
    Non-GAAP net income $ 1,757     $ 2,337     $ 2,962     $ 4,094     $ 5,424  
                       
                       
    Non-GAAP net income per share – diluted $ 0.04     $ 0.06     $ 0.08     $ 0.10     $ 0.14  
                       
    Denominator for GAAP net income (loss) per share – diluted   38,631       38,024       37,354       38,330       37,170  
    Non-GAAP adjustment   953       1,257       1,228       901       938  
    Denominator for non-GAAP net income per share – diluted   39,584       39,281       38,582       39,231       38,108  
                       
    GAAP cost of revenue $ 17,877     $ 19,948     $ 22,007     $ 37,825     $ 40,941  
    Non-GAAP adjustments to cost of revenue   (164 )     (192 )     (363 )     (356 )     (811 )
    Non-GAAP cost of revenue   17,713       19,756       21,644       37,469       40,130  
    Non-GAAP gross profit $ 13,448     $ 14,667     $ 15,394     $ 28,115     $ 29,939  
    Non-GAAP gross margin   43.2 %     42.6 %     41.6 %     42.9 %     42.7 %
                       
    LANTRONIX, INC.
    UNAUDITED NET REVENUES BY PRODUCT LINE AND REGION
    (In thousands)
                       
      Three Months Ended   Six Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023   December 31, 2024   December 31, 2023
    Embedded IoT Solutions $ 10,784     $ 13,387     $ 11,764     $ 24,171     $ 23,137  
    IoT System Solutions   18,592       18,759       23,022       37,351       42,058  
    Software & Services   1,785       2,277       2,252       4,062       4,874  
      $ 31,161     $ 34,423     $ 37,038     $ 65,584     $ 70,069  
                       
                       
      Three Months Ended   Six Months Ended
      December 31, 2024   September 30, 2024   December 31, 2023   December 31, 2024   December 31, 2023
    Americas $ 16,386     $ 17,420     $ 20,601     $ 33,806     $ 43,534  
    EMEA   9,036       10,484       12,886       19,520       19,477  
    Asia Pacific Japan   5,739       6,519       3,551       12,258       7,058  
      $ 31,161     $ 34,423     $ 37,038     $ 65,584     $ 70,069  
                       

    The MIL Network –

  • MIL-OSI: Global-e to Announce Financial Results for the Fourth Quarter and Year End 2024 on February 19, 2025

    Source: GlobeNewswire (MIL-OSI)

    PETAH-TIKVA, Israel, Feb. 06, 2025 (GLOBE NEWSWIRE) — Global-e (Nasdaq: GLBE), the platform powering global direct-to-consumer e-commerce, today announced it will report financial results for the fourth quarter and full year ended December 31, 2024, before market open on Wednesday, February 19, 2025.

    Global-e management will host a conference call to review its financial results and outlook.

    Date: Wednesday, February 19, 2025
    Time: 8:00 AM ET
    United States/Canada Toll Free: +1-800-717-1738
    International Toll: +1-646-307-1865
       

    Please join the call 5-10 minutes prior to the scheduled start time, to avoid a delay in connecting. A live webcast will be available in the Investor Relations section of Global-e’s website at https://investors.global-e.com/news-events/events-presentations

    A replay of the webcast will be available in the Investor Relations section of Global-e’s website at https://investors.global-e.com/news-events/events-presentations approximately two hours after the conclusion of the call and remain available for approximately 30 calendar days.

    About Global-e Online Ltd.

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

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

    Press Contact:
    Sarah Schloss
    Headline Media
    sarah.schloss@headline.media
    +1 914-506-5104

    The MIL Network –

  • MIL-OSI: Expand Energy Provides 2024 Fourth Quarter and Full Year Earnings Conference Call Information

    Source: GlobeNewswire (MIL-OSI)

    OKLAHOMA CITY, Feb. 06, 2025 (GLOBE NEWSWIRE) — Expand Energy Corporation (NASDAQ: EXE) announced today that it will release its 2024 fourth quarter and full year operational and financial results after market close on February 26, 2025. A conference call to discuss the results and 2025 plan has been scheduled for February 27, 2025 at 9:00 a.m. EST. Participants can view the live webcast here. Participants who would like to ask a question, can register here, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided on Expand Energy’s website. A replay will be available on the website following the call.

    About Expand Energy
    Expand Energy Corporation (NASDAQ: EXE) is the largest independent natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

       
    INVESTOR CONTACT:
    Chris Ayres
    (405) 935-8870
    ir@expandenergy.com    		 MEDIA CONTACT:
    Brooke Coe
    (405) 935-8878
    media@expandenergy.com
       

    The MIL Network –

  • MIL-OSI: StepStone Group Reports Third Quarter Fiscal Year 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 06, 2025 (GLOBE NEWSWIRE) — StepStone Group Inc. (Nasdaq: STEP), a global private markets investment firm focused on providing customized investment solutions and advisory and data services, today reported results for the quarter ended December 31, 2024. This represents results for the third quarter of the fiscal year ending March 31, 2025. The Board of Directors of the Company has declared a quarterly cash dividend of $0.24 per share of Class A common stock, payable on March 14, 2025, to the holders of record as of the close of business on February 28, 2025.

    StepStone issued a full detailed presentation of its third quarter fiscal 2025 results, which can be accessed by visiting the Company’s website at https://shareholders.stepstonegroup.com.

    Webcast and Earnings Conference Call

    Management will host a webcast and conference call today, Thursday, February 6, 2025, at 5:00 pm ET to discuss the Company’s results for the third quarter of the fiscal year ending March 31, 2025. The webcast will be made available on the Shareholders section of the Company’s website at https://shareholders.stepstonegroup.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register. A replay will also be available on the Shareholders section of the Company’s website approximately two hours after the conclusion of the event.

    To join as a live participant in the question and answer portion of the call, participants must register at https://register.vevent.com/register/BI4d11263234d648c092cf5d1e8339df8d. Upon registering you will receive the dial-in number and a PIN to join the call as well as an email confirmation with the details.

    About StepStone

    StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2024, StepStone was responsible for approximately $698 billion of total capital, including $179 billion of assets under management. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the private equity, infrastructure, private debt and real estate asset classes.

    Forward-Looking Statements

    Some of the statements in this release may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “plan” and “will” and similar expressions identify forward-looking statements. Forward-looking statements reflect management’s current plans, estimates and expectations and are inherently uncertain. The inclusion of any forward-looking information in this release should not be regarded as a representation that the future plans, estimates or expectations contemplated will be achieved. Forward-looking statements are subject to various risks, uncertainties and assumptions. Important factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, global and domestic market and business conditions, our successful execution of business and growth strategies, the favorability of the private markets fundraising environment, successful integration of acquired businesses and regulatory factors relevant to our business, as well as assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity and the risks and uncertainties described in greater detail under the “Risk Factors” section of our annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on May 24, 2024, as such factors may be updated from time to time. We undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared and presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we use the following non-GAAP financial measures: adjusted management and advisory fees, net, adjusted revenues, adjusted net income (on both a pre-tax and after-tax basis), adjusted net income per share, adjusted weighted-average shares, fee-related earnings, fee-related earnings margin, gross realized performance fees and net realized performance fees. We have provided this non-GAAP financial information, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in this earnings release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in this earnings release. The presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. In addition, the non-GAAP financial measures in this earnings release may not be comparable to similarly titled measures used by other companies in our industry or across different industries. For definitions of these non-GAAP measures and reconciliations to applicable GAAP measures, please see the section titled “Non-GAAP Financial Measures: Definitions and Reconciliations.”

               
    Financial Highlights and Key Business Drivers/Operating Metrics
               
      Three Months Ended   Nine Months Ended
    December 31,    		   Percentage Change
    (in thousands, except share and per share amounts and where noted) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024     vs. FQ3’24 vs. FQ3’24
    YTD
    Financial Highlights                      
    GAAP Results                      
    Management and advisory fees, net $ 151,492   $ 153,410   $ 178,015   $ 184,758   $ 190,840     $ 431,730   $ 553,613     26 % 28 %
    Total revenues   (14,612 )   356,810     186,401     271,677     339,023       354,821     797,101     na 125 %
    Total performance fees   (166,104 )   203,400     8,386     86,919     148,183       (76,909 )   243,488     na na
    Net income (loss)   (23,419 )   82,542     48,045     53,138     (287,163 )     85,278     (185,980 )   na na
    Net income (loss) per share of Class A common stock:                      
    Basic $ (0.32 ) $ 0.48   $ 0.20   $ 0.26   $ (2.61 )   $ 0.43   $ (2.32 )   (725) % na
    Diluted $ (0.32 ) $ 0.48   $ 0.20   $ 0.26   $ (2.61 )   $ 0.43   $ (2.32 )   (725) % na
    Weighted-average shares of Class A common stock:                      
    Basic   64,068,952    64,194,859    66,187,754    68,772,051    73,687,289      63,255,604    69,561,254    15 % 10 %
    Diluted   64,068,952    67,281,567    68,593,761    69,695,315    73,687,289      66,299,982    69,561,254    15 % 5 %
    Quarterly dividend per share of Class A common stock(1) $ 0.21   $ 0.21   $ 0.21   $ 0.24   $ 0.24     $ 0.62   $ 0.69     14 % 11 %
    Supplemental dividend per share of Class A common stock(2) $ —   $ —   $ 0.15   $ —   $ —     $ 0.25   $ 0.15     na (40) %
    Accrued carried interest allocations   1,203,847     1,354,051     1,328,853     1,381,110     1,474,543           22 %  
                           
    Non-GAAP Results(3)                      
    Adjusted management and advisory fees, net(4) $ 151,943   $ 153,808   $ 178,514   $ 185,481   $ 191,832     $ 432,571   $ 555,827     26 % 28 %
    Adjusted revenues   185,123     177,357     221,165     208,788     243,905       487,703     673,858     32 % 38 %
    Fee-related earnings (“FRE”)   50,664     50,900     71,656     72,349     74,118       138,893     218,123     46 % 57 %
    FRE margin(5)   33 %   33 %   40 %   39 %   39 %     32 %   39 %      
    Gross realized performance fees   33,180     23,549     42,651     23,307     52,073       55,132     118,031     57 % 114 %
    Adjusted net income (“ANI”)   42,116     37,716     57,241     53,569     52,659       101,677     163,469     25 % 61 %
    Adjusted weighted-average shares   115,232,927    115,512,301    118,510,499    118,774,233    118,935,179      115,009,445    118,740,805    3 % 3 %
    ANI per share $ 0.37   $ 0.33   $ 0.48   $ 0.45   $ 0.44     $ 0.88   $ 1.38     19 % 57 %
                           
    Key Business Drivers/Operating Metrics (in billions)                      
    Assets under management (“AUM”)(6) $ 149.0   $ 156.6   $ 169.3   $ 176.1   $ 179.2           20 %  
    Assets under advisement (“AUA”)(6)   510.5     521.1     531.4     505.9     518.7           2 %  
    Fee-earning AUM (“FEAUM”)   89.4     93.9     100.4     104.4     114.2           28 %  
    Undeployed fee-earning capital (“UFEC”)   21.4     22.6     27.6     29.7     21.7           1 %  

    _______________________________
    (1)      Dividends paid, as reported in this table, relate to the preceding quarterly period in which they were earned.
    (2)      The supplemental cash dividend relates to earnings in respect of our full fiscal years 2023 and 2024, respectively.
    (3)      Adjusted management and advisory fees, net, adjusted revenues, FRE, FRE margin, gross realized performance fees, ANI, adjusted weighted-average shares and ANI per share are non-GAAP measures. See the definitions of these measures and reconciliations to the respective, most comparable GAAP measures under “Non-GAAP Financial Measures: Definitions and Reconciliations.”
    (4)      Excludes the impact of consolidating the Consolidated Funds. See reconciliation of GAAP measures to adjusted measures that follows.
    (5)      FRE margin is calculated by dividing FRE by adjusted management and advisory fees, net.
    (6)      AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented. Does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.

       
    StepStone Group Inc.
    GAAP Condensed Consolidated Balance Sheets (Unaudited)
    (in thousands, except share and per share amounts)
       
      As of
      December 31, 2024   March 31, 2024
    Assets      
    Cash and cash equivalents $ 223,103     $ 143,430
    Restricted cash   720       718
    Fees and accounts receivable   63,521       56,769
    Due from affiliates   96,590       67,531
    Investments:      
    Investments in funds   172,748       135,043
    Accrued carried interest allocations   1,474,543       1,354,051
    Legacy Greenspring investments in funds and accrued carried interest allocations(1)   572,459       631,197
    Deferred income tax assets   356,122       184,512
    Lease right-of-use assets, net   90,567       97,763
    Other assets and receivables   66,114       60,611
    Intangibles, net   274,122       304,873
    Goodwill   580,542       580,542
    Assets of Consolidated Funds:      
    Cash and cash equivalents   55,681       38,164
    Investments, at fair value   320,482       131,858
    Other assets   2,333       1,745
    Total assets $ 4,349,647     $ 3,788,807
    Liabilities and stockholders’ equity      
    Accounts payable, accrued expenses and other liabilities $ 139,068     $ 127,417
    Accrued compensation and benefits   690,321       101,481
    Accrued carried interest-related compensation   730,218       719,497
    Legacy Greenspring accrued carried interest-related compensation(1)   439,898       484,154
    Due to affiliates   315,739       212,918
    Lease liabilities   112,175       119,739
    Debt obligations   168,942       148,822
    Liabilities of Consolidated Funds:      
    Other liabilities   9,860       1,645
    Total liabilities   2,606,221       1,915,673
    Redeemable non-controlling interests in Consolidated Funds   286,822       102,623
    Redeemable non-controlling interests in subsidiaries   6,552       115,920
    Stockholders’ equity:      
    Class A common stock, $0.001 par value, 650,000,000 authorized; 75,841,118 and 65,614,902 issued and outstanding as of December 31, 2024 and March 31, 2024, respectively   76       66
    Class B common stock, $0.001 par value, 125,000,000 authorized; 40,127,254 and 45,030,959 issued and outstanding as of December 31, 2024 and March 31, 2024, respectively   40       45
    Additional paid-in capital   415,059       310,293
    Retained earnings (accumulated deficit)   (205,674 )     13,768
    Accumulated other comprehensive income   341       304
    Total StepStone Group Inc. stockholders’ equity   209,842       324,476
    Non-controlling interests in subsidiaries   1,051,919       974,559
    Non-controlling interests in legacy Greenspring entities(1)   132,561       147,042
    Non-controlling interests in the Partnership   55,730       208,514
    Total stockholders’ equity   1,450,052       1,654,591
    Total liabilities and stockholders’ equity $ 4,349,647     $ 3,788,807

    (1)      Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.

           
    StepStone Group Inc.
    GAAP Condensed Consolidated Statements of Income (Loss) (Unaudited)
    (in thousands, except share and per share amounts)
           
      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Revenues              
    Management and advisory fees, net $ 190,840     $ 151,492     $ 553,613     $ 431,730  
    Performance fees:              
    Incentive fees   22,369       17,891       26,365       22,843  
    Carried interest allocations:              
    Realized   24,282       15,289       83,718       31,347  
    Unrealized   93,325       (129,584 )     120,370       (24,849 )
    Total carried interest allocations   117,607       (114,295 )     204,088       6,498  
    Legacy Greenspring carried interest allocations(1)   8,207       (69,700 )     13,035       (106,250 )
    Total performance fees   148,183       (166,104 )     243,488       (76,909 )
    Total revenues   339,023       (14,612 )     797,101       354,821  
    Expenses              
    Compensation and benefits:              
    Cash-based compensation   85,203       73,619       246,298       218,551  
    Equity-based compensation   486,418       14,032       542,929       28,420  
    Performance fee-related compensation:              
    Realized   25,477       15,444       55,092       26,266  
    Unrealized   49,670       (62,243 )     66,495       (9,320 )
    Total performance fee-related compensation   75,147       (46,799 )     121,587       16,946  
    Legacy Greenspring performance fee-related compensation(1)   8,207       (69,700 )     13,035       (106,250 )
    Total compensation and benefits   654,975       (28,848 )     923,849       157,667  
    General, administrative and other   43,130       48,001       134,202       113,007  
    Total expenses   698,105       19,153       1,058,051       270,674  
    Other income (expense)              
    Investment income (loss)   1,064       (2,051 )     5,710       4,115  
    Legacy Greenspring investment income (loss)(1)   1,167       (2,222 )     (4,119 )     (9,054 )
    Investment income of Consolidated Funds   15,037       11,223       30,878       22,357  
    Interest income   2,559       827       7,632       2,235  
    Interest expense   (3,008 )     (2,562 )     (9,510 )     (6,682 )
    Other income (loss)   (2,452 )     4,408       (1,626 )     3,763  
    Total other income   14,367       9,623       28,965       16,734  
    Income (loss) before income tax   (344,715 )     (24,142 )     (231,985 )     100,881  
    Income tax expense (benefit)   (57,552 )     (723 )     (46,005 )     15,603  
    Net income (loss)   (287,163 )     (23,419 )     (185,980 )     85,278  
    Less: Net income attributable to non-controlling interests in subsidiaries   27,226       13,552       62,966       32,797  
    Less: Net income (loss) attributable to non-controlling interests in legacy Greenspring entities(1)   1,167       (2,222 )     (4,119 )     (9,054 )
    Less: Net income (loss) attributable to non-controlling interests in the Partnership   (134,760 )     (20,111 )     (107,856 )     22,677  
    Less: Net income attributable to redeemable non-controlling interests in Consolidated Funds   10,905       5,588       23,101       11,590  
    Less: Net income attributable to redeemable non-controlling interests in subsidiaries   314       —       983       —  
    Net income (loss) attributable to StepStone Group Inc. $ (192,015 )   $ (20,226 )   $ (161,055 )   $ 27,268  
    Net income (loss) per share of Class A common stock:              
    Basic $ (2.61 )   $ (0.32 )   $ (2.32 )   $ 0.43  
    Diluted $ (2.61 )   $ (0.32 )   $ (2.32 )   $ 0.43  
    Weighted-average shares of Class A common stock:              
    Basic   73,687,289       64,068,952       69,561,254       63,255,604  
    Diluted   73,687,289       64,068,952       69,561,254       66,299,982  

    (1)      Reflects amounts attributable to consolidated VIEs for which the Company did not acquire any direct economic interests.

    Non-GAAP Financial Measures: Definitions and Reconciliations

    Adjusted Management and Advisory Fees, Net

    The following table presents the components of adjusted management and advisory fees, net. We believe adjusted management and advisory fees, net is useful to investors because it removes the impact of consolidating the Consolidated Funds which we are required to consolidate under GAAP.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024
    Focused commingled funds(1)(2) $ 78,633 $ 80,434 $ 104,798 $ 107,855 $ 105,718   $ 216,233 $ 318,371
    Separately managed accounts   55,838   55,945   57,376   61,393   66,245     168,013   185,014
    Advisory and other services   16,069   16,147   14,769   14,907   17,458     43,910   47,134
    Fund reimbursement revenues(1)   1,403   1,282   1,571   1,326   2,411     4,415   5,308
    Adjusted management and advisory fees, net $ 151,943 $ 153,808 $ 178,514 $ 185,481 $ 191,832   $ 432,571 $ 555,827

    _______________________________
    (1)      Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
    (2)      Includes income-based incentive fees of $2.1 million for the three months ended December 31, 2024, $1.3 million for the three months ended September 30, 2024, $1.1 million for the three months ended June 30, 2024, $0.8 million for the three months ended March 31, 2024, $0.6 million for the three months ended December 31, 2023, and $4.6 million and $0.6 million for the nine months ended December 31, 2024 and 2023, respectively, from certain funds.

    Adjusted Revenues

    Adjusted revenues represents the components of revenues used in the determination of ANI and comprise adjusted management and advisory fees, net, adjusted incentive fees (including the deferred portion) and realized carried interest allocations. We believe adjusted revenues is useful to investors because it presents a measure of realized revenues.

    The table below shows a reconciliation of revenues to adjusted revenues.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024  
    Total revenues $ (14,612 ) $ 356,810   $ 186,401 $ 271,677   $ 339,023     $ 354,821 $ 797,101  
    Unrealized carried interest allocations   129,584     (151,757 )   25,170   (52,215 )   (93,325 )     24,849   (120,370 )
    Deferred incentive fees   —     1,450     6   2,445     —       942   2,451  
    Legacy Greenspring carried interest allocations   69,700     (31,093 )   9,089   (13,917 )   (8,207 )     106,250   (13,035 )
    Management and advisory fee revenues for the Consolidated Funds(1)   451     398     499   723     992       841   2,214  
    Incentive fees for the Consolidated Funds(2)   —     1,549     —   75     5,422       —   5,497  
    Adjusted revenues $ 185,123   $ 177,357   $ 221,165 $ 208,788   $ 243,905     $ 487,703 $ 673,858  

    _______________________________
    (1)      Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
    (2)      Reflects the add-back of incentive fees for the Consolidated Funds, which have been eliminated in consolidation.

    Adjusted Net Income

    Adjusted net income, or “ANI,” is a non-GAAP performance measure that we present before the consolidation of StepStone Funds on a pre-tax and after-tax basis used to evaluate profitability. ANI represents the after-tax net realized income attributable to us. ANI does not reflect legacy Greenspring carried interest allocation revenues, legacy Greenspring carried interest-related compensation and legacy Greenspring investment income (loss) as none of the economics are attributable to us. The components of revenues used in the determination of ANI (“adjusted revenues”) comprise adjusted management and advisory fees, net, adjusted incentive fees (including the deferred portion) and realized carried interest allocations. In addition, ANI excludes: (a) unrealized carried interest allocation revenues and related compensation, (b) unrealized investment income (loss), (c) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (d) amortization of intangibles, (e) net income (loss) attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary, (f) charges associated with acquisitions and corporate transactions, and (g) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). ANI is fully taxed at our blended statutory rate. We believe ANI and adjusted revenues are useful to investors because they enable investors to evaluate the performance of our business across reporting periods.

    Fee-Related Earnings

    Fee-related earnings, or “FRE,” is a non-GAAP performance measure used to monitor our baseline earnings from recurring management and advisory fees. FRE is a component of ANI and comprises adjusted management and advisory fees, net, less adjusted expenses which are operating expenses other than (a) performance fee-related compensation, (b) equity-based compensation for awards granted prior to and in connection with our IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary, (c) amortization of intangibles, (d) charges associated with acquisitions and corporate transactions, and (e) certain other items that we believe are not indicative of our core operating performance (as listed in the table below). FRE is presented before income taxes. We believe FRE is useful to investors because it provides additional insight into the operating profitability of our business and our ability to cover direct base compensation and operating expenses from total fee revenue.

    The table below shows a reconciliation of GAAP measures to additional non-GAAP measures. We use the non-GAAP measures presented below as components when calculating FRE and ANI (as defined below). We believe these additional non-GAAP measures are useful to investors in evaluating both the baseline earnings from recurring management and advisory fees, which provide additional insight into the operating profitability of our business, and the after-tax net realized income attributable to us, allowing investors to evaluate the performance of our business. These additional non-GAAP measures remove the impact of Consolidated Funds that we are required to consolidate under GAAP, and certain other items that we believe are not indicative of our core operating performance.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024  
    GAAP management and advisory fees, net $ 151,492   $ 153,410   $ 178,015   $ 184,758   $ 190,840     $ 431,730   $ 553,613  
    Management and advisory fee revenues for the Consolidated Funds(1)   451     398     499     723     992       841     2,214  
    Adjusted management and advisory fees, net $ 151,943   $ 153,808   $ 178,514   $ 185,481   $ 191,832     $ 432,571   $ 555,827  
                     
    GAAP incentive fees $ 17,891   $ 2,496   $ 841   $ 3,155   $ 22,369     $ 22,843   $ 26,365  
    Incentive fee revenues for the Consolidated Funds(2)   —     1,549     —     75     5,422       —     5,497  
    Adjusted incentive fees $ 17,891   $ 4,045   $ 841   $ 3,230   $ 27,791     $ 22,843   $ 31,862  
                     
    GAAP cash-based compensation $ 73,619   $ 74,411   $ 78,224   $ 82,871   $ 85,203     $ 218,551   $ 246,298  
    Adjustments(3)   (574 )   (461 )   (428 )   (285 )   339       (1,679 )   (374 )
    Adjusted cash-based compensation $ 73,045   $ 73,950   $ 77,796   $ 82,586   $ 85,542     $ 216,872   $ 245,924  
                     
    GAAP equity-based compensation $ 14,032   $ 13,937   $ 19,179   $ 37,332   $ 486,418     $ 28,420   $ 542,929  
    Adjustments(4)   (12,610 )   (12,210 )   (16,785 )   (34,947 )   (483,958 )     (24,425 )   (535,690 )
    Adjusted equity-based compensation $ 1,422   $ 1,727   $ 2,394   $ 2,385   $ 2,460     $ 3,995   $ 7,239  
                     
    GAAP general, administrative and other $ 48,001   $ 54,310   $ 41,011   $ 50,061   $ 43,130     $ 113,007   $ 134,202  
    Adjustments(5)   (21,189 )   (27,079 )   (14,343 )   (21,900 )   (13,418 )     (40,196 )   (49,661 )
    Adjusted general, administrative and other $ 26,812   $ 27,231   $ 26,668   $ 28,161   $ 29,712     $ 72,811   $ 84,541  
                     
    GAAP interest income $ 827   $ 1,429   $ 2,057   $ 3,016   $ 2,559     $ 2,235   $ 7,632  
    Interest income earned by the Consolidated Funds(6)   (540 )   (612 )   (907 )   (1,363 )   (887 )     (1,033 )   (3,157 )
    Adjusted interest income $ 287   $ 817   $ 1,150   $ 1,653   $ 1,672     $ 1,202   $ 4,475  
                     
    GAAP other income (loss) $ 4,408   $ (1,308 ) $ (351 ) $ 1,177   $ (2,452 )   $ 3,763   $ (1,626 )
    Adjustments(7)   (4,301 )   395     (72 )   (1,082 )   1,883       (4,274 )   729  
    Adjusted other income (loss) $ 107   $ (913 ) $ (423 ) $ 95   $ (569 )   $ (511 ) $ (897 )

    ______________________________
    (1)      Reflects the add-back of management and advisory fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
    (2)      Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.
    (3)      Reflects the removal of compensation paid to certain employees as part of an acquisition earn-out.
    (4)      Reflects the removal of equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
    (5)      Reflects the removal of lease remeasurement adjustments, accelerated depreciation of leasehold improvements for changes in lease terms, amortization of intangibles, transaction-related costs and other non-core operating income and expenses.
    (6)      Reflects the removal of interest income earned by the Consolidated Funds.
    (7)      Reflects the removal of amounts for Tax Receivable Agreements adjustments recognized as other income (loss), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters, loss on sale of subsidiary and the impact of consolidation of the Consolidated Funds.

    The table below shows a reconciliation of income (loss) before income tax to ANI and FRE.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024  
    Income (loss) before income tax $ (24,142 )   94,515   $ 54,842   $ 57,888   $ (344,715 )   $ 100,881   $ (231,985 )
    Net income attributable to non-controlling interests in subsidiaries(1)   (15,537 )   (12,822 )   (18,951 )   (17,812 )   (32,765 )     (36,398 )   (69,528 )
    Net (income) loss attributable to non-controlling interests in legacy Greenspring entities   2,222     33     1,255     4,031     (1,167 )     9,054     4,119  
    Unrealized carried interest allocations   129,584     (151,757 )   25,170     (52,215 )   (93,325 )     24,849     (120,370 )
    Unrealized performance fee-related compensation   (62,243 )   84,014     (10,923 )   27,748     49,670       (9,320 )   66,495  
    Unrealized investment (income) loss   5,559     (2,280 )   (1,180 )   (430 )   656       1,373     (954 )
    Impact of Consolidated Funds   (11,068 )   (4,138 )   (7,731 )   (9,267 )   (6,892 )     (21,938 )   (23,890 )
    Deferred incentive fees   —     1,450     6     2,445     —       942     2,451  
    Equity-based compensation(2)   12,610     12,210     16,785     34,947     483,958       24,425     535,690  
    Amortization of intangibles   10,661     10,423     10,250     10,250     10,250       31,983     30,750  
    Tax Receivable Agreements adjustments through earnings   222     90     —     —     —       222     —  
    Non-core items(3)   6,335     16,780     4,137     11,349     2,094       4,785     17,580  
    Pre-tax ANI   54,203     48,518     73,660     68,934     67,764       130,858     210,358  
    Income taxes(4)   (12,087 )   (10,802 )   (16,419 )   (15,365 )   (15,105 )     (29,181 )   (46,889 )
    ANI   42,116     37,716     57,241     53,569     52,659       101,677     163,469  
    Income taxes(4)   12,087     10,802     16,419     15,365     15,105       29,181     46,889  
    Realized carried interest allocations   (15,289 )   (18,054 )   (41,804 )   (17,632 )   (24,282 )     (31,347 )   (83,718 )
    Realized performance fee-related compensation(5)   15,444     11,421     20,848     8,767     25,477       26,266     55,092  
    Realized investment income   (3,508 )   (1,057 )   (1,415 )   (1,621 )   (1,720 )     (5,488 )   (4,756 )
    Adjusted incentive fees(6)   (17,891 )   (4,045 )   (841 )   (3,230 )   (27,791 )     (22,843 )   (31,862 )
    Deferred incentive fees   —     (1,450 )   (6 )   (2,445 )   —       (942 )   (2,451 )
    Adjusted interest income(6)   (287 )   (817 )   (1,150 )   (1,653 )   (1,672 )     (1,202 )   (4,475 )
    Interest expense   2,562     2,649     2,990     3,512     3,008       6,682     9,510  
    Adjusted other (income) loss(6)(7)   (107 )   913     423     (95 )   569       511     897  
    Net income attributable to non-controlling interests in subsidiaries(1)   15,537     12,822     18,951     17,812     32,765       36,398     69,528  
    FRE $ 50,664   $ 50,900   $ 71,656   $ 72,349   $ 74,118     $ 138,893   $ 218,123  

    _______________________________
    (1)      Reflects the portion of pre-tax ANI attributable to non-controlling interests in our subsidiaries and realized gains attributable to the profits interests issued in the private wealth subsidiary:

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024
    FRE attributable to non-controlling interests in subsidiaries and profits interests $ 10,518 $ 11,559 $ 13,308 $ 14,969 $ 21,063   $ 30,515 $ 49,340
    Performance related earnings / other (income) loss attributable to non-controlling interests in subsidiaries and profits interests   5,019   1,263   5,643   2,843   11,702     5,883   20,188
    Net income attributable to non-controlling interests in subsidiaries $ 15,537 $ 12,822 $ 18,951 $ 17,812 $ 32,765   $ 36,398 $ 69,528

    The contribution to total FRE attributable to non-controlling interests in subsidiaries and profits interests and performance related earnings / other (income) loss attributable to non-controlling interests in subsidiaries and profits interests presented above specifically related to the profits interests issued in the private wealth subsidiary is presented below.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024
    FRE attributable to profits interests issued in the private wealth subsidiary $ — $ — $ 574 $ 2,051 $ 2,956   $ — $ 5,581
    Performance related earnings / other (income) loss attributable to profits interests issued in the private wealth subsidiary   3,074   —   51   206   11,137     3,074   11,394
    Amounts attributable to profits interests issued in the private wealth subsidiary $ 3,074 $ — $ 625 $ 2,257 $ 14,093   $ 3,074 $ 16,975

    (2)      Reflects equity-based compensation for awards granted prior to and in connection with the IPO, profits interests issued by our non-wholly owned subsidiaries, and unrealized mark-to-market changes in the fair value of the profits interests issued in the private wealth subsidiary.
    (3)      Includes (income) expense related to the following non-core operating income and expenses:

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024
    Transaction costs $ 670   $ 3,985 $ 672 $ 140 $ 12     $ 870   $ 824
    Lease remeasurement adjustments   (106 )   —   —   —   —       (106 )   —
    Accelerated depreciation of leasehold improvements for changes in lease terms   631     —   —   —   —       1,893     —
    Loss on change in fair value for contingent consideration obligation   9,054     12,280   2,953   10,888   2,476       4,937     16,317
    Compensation paid to certain employees as part of an acquisition earn-out   574     515   482   321   (394 )     1,679     409
    Gain from negotiation of certain corporate matters   (5,300 )   —   —   —   —       (5,300 )   —
    Loss on sale of subsidiary   812     —   —   —   —       812     —
    Other non-core items   —     —   30   —   —       —     30
    Total non-core operating income and expenses $ 6,335   $ 16,780 $ 4,137 $ 11,349 $ 2,094     $ 4,785   $ 17,580

    (4)      Represents corporate income taxes at a blended statutory rate applied to pre-tax ANI:

      Three Months Ended   Nine Months Ended
    December 31,
      December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		   2023   2024  
    Federal statutory rate 21.0 % 21.0 % 21.0 % 21.0 % 21.0 %   21.0 % 21.0 %
    Combined state, local and foreign rate 1.3 % 1.3 % 1.3 % 1.3 % 1.3 %   1.3 % 1.3 %
    Blended statutory rate 22.3 % 22.3 % 22.3 % 22.3 % 22.3 %   22.3 % 22.3 %

    (5)      Includes carried interest-related compensation expense related to the portion of net carried interest allocation revenue attributable to equity holders of the Company’s consolidated subsidiaries that are not 100% owned:

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024
    Realized carried interest-related compensation $ 660 $ 910 $ — $ — $ —   $ 2,849 $ —

    (6)      Excludes the impact of consolidating the Consolidated Funds.
    (7)      Excludes amounts for Tax Receivable Agreements adjustments recognized as other income (loss) ($(0.1) million for the three months ended March 31, 2024 and $(0.2) million for the three and nine months ended December 31, 2023), gain associated with amounts received as part of negotiations with a third party related to certain corporate matters ($5.3 million for the three and nine months ended December 31, 2023), and loss on sale of subsidiary ($0.8 million for the three and nine months ended December 31, 2023).

    Fee-Related Earnings Margin

    FRE margin is a non-GAAP performance measure which is calculated by dividing FRE by adjusted management and advisory fees, net. We believe FRE margin is an important measure of profitability on revenues that are largely recurring by nature. We believe FRE margin is useful to investors because it enables them to better evaluate the operating profitability of our business across periods.

    The table below shows a reconciliation of FRE to FRE margin.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024  
    FRE $ 50,664   $ 50,900   $ 71,656   $ 72,349   $ 74,118     $ 138,893   $ 218,123  
    Adjusted management and advisory fees, net   151,943     153,808     178,514     185,481     191,832       432,571     555,827  
    FRE margin   33 %   33 %   40 %   39 %   39 %     32 %   39 %


    Gross Realized Performance Fees

    Gross realized performance fees represents realized carried interest allocations and adjusted incentive fees, including the deferred portion. We believe gross realized performance fees is useful to investors because it presents the total performance fees realized by us.

    Net Realized Performance Fees

    Net realized performance fees represents gross realized performance fees, less realized performance fee-related compensation. We believe net realized performance fees is useful to investors because it presents the performance fees attributable to us, net of amounts paid to employees as performance fee-related compensation.

    The table below shows a reconciliation of total performance fees to gross and net realized performance fees.

      Three Months Ended   Nine Months Ended
    December 31,
    (in thousands) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024  
    Incentive fees $ 17,891   $ 2,496   $ 841   $ 3,155   $ 22,369     $ 22,843   $ 26,365  
    Realized carried interest allocations   15,289     18,054     41,804     17,632     24,282       31,347     83,718  
    Unrealized carried interest allocations   (129,584 )   151,757     (25,170 )   52,215     93,325       (24,849 )   120,370  
    Legacy Greenspring carried interest allocations   (69,700 )   31,093     (9,089 )   13,917     8,207       (106,250 )   13,035  
    Total performance fees   (166,104 )   203,400     8,386     86,919     148,183       (76,909 )   243,488  
    Unrealized carried interest allocations   129,584     (151,757 )   25,170     (52,215 )   (93,325 )     24,849     (120,370 )
    Legacy Greenspring carried interest allocations   69,700     (31,093 )   9,089     (13,917 )   (8,207 )     106,250     (13,035 )
    Incentive fee revenues for the Consolidated Funds(1)   —     1,549     —     75     5,422       —     5,497  
    Deferred incentive fees   —     1,450     6     2,445     —       942     2,451  
    Gross realized performance fees   33,180     23,549     42,651     23,307     52,073       55,132     118,031  
    Realized performance fee-related compensation   (15,444 )   (11,421 )   (20,848 )   (8,767 )   (25,477 )     (26,266 )   (55,092 )
    Net realized performance fees $ 17,736   $ 12,128   $ 21,803   $ 14,540   $ 26,596     $ 28,866   $ 62,939  

    ______________________________
    (1)      Reflects the add-back of incentive fee revenues for the Consolidated Funds, which have been eliminated in consolidation.

    Adjusted Weighted-Average Shares and Adjusted Net Income Per Share

    ANI per share measures our per-share earnings assuming all Class B units, Class C units and Class D units in the Partnership were exchanged for Class A common stock in SSG, including the dilutive impact of outstanding equity-based awards. ANI per share is calculated as ANI divided by adjusted weighted-average shares outstanding. We believe adjusted weighted-average shares and ANI per share are useful to investors because they enable investors to better evaluate per-share operating performance across reporting periods.

    The following table shows a reconciliation of diluted weighted-average shares of Class A common stock outstanding to adjusted weighted-average shares outstanding used in the computation of ANI per share.

      Three Months Ended   Nine Months Ended
    December 31,
      December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023   2024
    ANI $ 42,116 $ 37,716 $ 57,241 $ 53,569 $ 52,659   $ 101,677 $ 163,469
                     
    Weighted-average shares of Class A common stock outstanding – Basic   64,068,952   64,194,859   66,187,754   68,772,051   73,687,289     63,255,604   69,561,254
    Assumed vesting of RSUs   333,402   512,946   673,854   921,166   491,014     511,889   695,423
    Assumed vesting and exchange of Class B2 units   2,553,899   2,573,762   1,732,153   —   —     2,532,489   573,185
    Assumed purchase under ESPP   —   —   —   2,098   —     —   702
    Exchange of Class B units in the Partnership(1)   46,314,543   46,272,227   45,827,707   45,212,921   41,729,937     46,384,046   44,251,143
    Exchange of Class C units in the Partnership(1)   1,962,131   1,958,507   1,849,846   1,626,812   1,016,737     2,325,417   1,496,518
    Exchange of Class D units in the Partnership(1)   —   —   2,239,185   2,239,185   2,010,202     —   2,162,580
    Adjusted weighted-average shares   115,232,927   115,512,301   118,510,499   118,774,233   118,935,179     115,009,445   118,740,805
                     
    ANI per share $ 0.37 $ 0.33 $ 0.48 $ 0.45 $ 0.44   $ 0.88 $ 1.38

    _______________________________
    (1)      Assumes the full exchange of Class B units, Class C units or Class D units in the Partnership for Class A common stock of SSG pursuant to the Class B Exchange Agreement, Class C Exchange Agreement or Class D Exchange Agreement, respectively.

    Key Operating Metrics

    We monitor certain operating metrics that are either common to the asset management industry or that we believe provide important data regarding our business. Refer to the Glossary below for a definition of each of these metrics.

    Fee-Earning AUM

      Three Months Ended   Nine Months Ended
    December 31,    		   Percentage
    Change
    (in millions) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		     2023     2024     vs. FQ3’24
    Separately Managed Accounts                    
    Beginning balance $ 56,380   $ 56,660   $ 58,897   $ 60,272   $ 62,121     $ 55,345   $ 58,897     10 %
    Contributions(1)   1,109     2,757     2,085     1,723     9,033       3,570     12,841     715 %
    Distributions(2)   (1,397 )   (795 )   (830 )   (535 )   (1,000 )     (3,285 )   (2,365 )   (28) %
    Market value, FX and other(3)   568     275     120     661     (180 )     1,030     601     na
    Ending balance $ 56,660   $ 58,897   $ 60,272   $ 62,121   $ 69,974     $ 56,660   $ 69,974     23 %
                         
    Focused Commingled Funds                    
    Beginning balance $ 30,905   $ 32,772   $ 34,961   $ 40,084   $ 42,294     $ 30,086   $ 34,961     37 %
    Contributions(1)   1,898     2,429     5,653     2,122     2,520       3,686     10,295     33 %
    Distributions(2)   (274 )   (327 )   (661 )   (282 )   (682 )     (1,514 )   (1,625 )   149 %
    Market value, FX and other(3)   243     87     131     370     60       514     561     (75) %
    Ending balance $ 32,772   $ 34,961   $ 40,084   $ 42,294   $ 44,192     $ 32,772   $ 44,192     35 %
                         
    Total                    
    Beginning balance $ 87,285   $ 89,432   $ 93,858   $ 100,356   $ 104,415     $ 85,431   $ 93,858     20 %
    Contributions(1)   3,007     5,186     7,738     3,845     11,553       7,256     23,136     284 %
    Distributions(2)   (1,671 )   (1,122 )   (1,491 )   (817 )   (1,682 )     (4,799 )   (3,990 )   1 %
    Market value, FX and other(3)   811     362     251     1,031     (120 )     1,544     1,162     na
    Ending balance $ 89,432   $ 93,858   $ 100,356   $ 104,415   $ 114,166     $ 89,432   $ 114,166     28 %

    _______________________________
    (1)      Contributions consist of new capital commitments that earn fees on committed capital and capital contributions to funds and accounts that earn fees on net invested capital or NAV.
    (2)      Distributions consist of returns of capital from funds and accounts that pay fees on net invested capital or NAV and reductions in fee-earning AUM from funds that moved from a committed capital to net invested capital fee basis or from funds and accounts that no longer pay fees.
    (3)      Market value, FX and other primarily consist of changes in market value appreciation (depreciation) for funds that pay on NAV and the effect of foreign exchange rate changes on non-U.S. dollar denominated commitments.

    Asset Class Summary

      Three Months Ended   Percentage
    Change
    (in millions) December
    31, 2023    		 March 31,
    2024    		 June 30,
    2024    		 September
    30, 2024    		 December
    31, 2024    		   vs. FQ3’24
    FEAUM              
    Private equity $ 48,258 $ 49,869 $ 54,855 $ 57,136 $ 62,811   30 %
    Infrastructure   19,789   20,114   20,377   20,986   23,411   18 %
    Private debt   15,460   15,477   16,161   16,975   17,882   16 %
    Real estate   5,925   8,398   8,963   9,318   10,062   70 %
    Total $ 89,432 $ 93,858 $ 100,356 $ 104,415 $ 114,166   28 %
                   
    Separately managed accounts $ 56,660 $ 58,897 $ 60,272 $ 62,121 $ 69,974   23 %
    Focused commingled funds   32,772   34,961   40,084   42,294   44,192   35 %
    Total $ 89,432 $ 93,858 $ 100,356 $ 104,415 $ 114,166   28 %
                   
    AUM(1)              
    Private equity $ 78,221 $ 81,942 $ 89,329 $ 91,891 $ 93,404   19 %
    Infrastructure   28,307   30,003   32,756   35,392   36,156   28 %
    Private debt   27,782   28,491   30,336   31,854   31,987   15 %
    Real estate   14,646   16,201   16,912   16,996   17,665   21 %
    Total $ 148,956 $ 156,637 $ 169,333 $ 176,133 $ 179,212   20 %
                   
    Separately managed accounts $ 88,890 $ 93,938 $ 103,003 $ 107,252 $ 109,305   23 %
    Focused commingled funds   45,508   48,545   51,682   53,870   55,142   21 %
    Advisory AUM   14,558   14,154   14,648   15,011   14,765   1 %
    Total $ 148,956 $ 156,637 $ 169,333 $ 176,133 $ 179,212   20 %
                   
    AUA              
    Private equity $ 266,246 $ 270,350 $ 279,909 $ 255,125 $ 263,420   (1 )%
    Infrastructure   57,528   60,339   62,599   62,891   67,100   17 %
    Private debt   17,916   21,976   22,280   19,328   19,325   8 %
    Real estate   168,802   168,455   166,659   168,519   168,807   — %
    Total $ 510,492 $ 521,120 $ 531,447 $ 505,863 $ 518,652   2 %
                   
    Total capital responsibility(2) $ 659,448 $ 677,757 $ 700,780 $ 681,996 $ 697,864   6 %

    _____________________________
    Note: Amounts may not sum to total due to rounding. AUM/AUA reflects final data for the prior period, adjusted for net new client account activity through the period presented, and does not include post-period investment valuation or cash activity. Net asset value (“NAV”) data for underlying investments is as of the prior period, as reported by underlying managers up to the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end. When NAV data is not available by the business day occurring on or after 100 days, or 115 days at the fiscal year-end, following the prior period end, such NAVs are adjusted for cash activity following the last available reported NAV.
    (1)      Allocation of AUM by asset class is presented by underlying investment asset classification.
    (2)      Total capital responsibility equals assets under management (AUM) plus assets under advisement (AUA).

    Contacts

    Shareholder Relations:
    Seth Weiss
    shareholders@stepstonegroup.com
    1-212-351-6106

    Media:
    Brian Ruby / Chris Gillick / Matt Lettiero, ICR
    StepStonePR@icrinc.com
    1-203-682-8268

    Glossary

    Assets under advisement, or “AUA,” consists of client assets for which we do not have full discretion to make investment decisions but play a role in advising the client or monitoring their investments. We generally earn revenue for advisory-related services on a contractual fixed fee basis. Advisory-related services include asset allocation, strategic planning, development of investment policies and guidelines, screening and recommending investments, legal negotiations, monitoring and reporting on investments, and investment manager review and due diligence. Advisory fees vary by client based on the scope of services, investment activity and other factors. Most of our advisory fees are fixed, and therefore, increases or decreases in AUA do not necessarily lead to proportionate changes in revenue. We believe AUA is a useful metric for assessing the relative size of our advisory business.

    Our AUA is calculated as the sum of (i) the NAV of client portfolio assets for which we do not have full discretion and (ii) the unfunded commitments of clients to the underlying investments. Our AUA reflects the investment valuations in respect of the underlying investments of our client accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUA does not include post-period investment valuation or cash activity. AUA as of December 31, 2024 reflects final data for the prior period (September 30, 2024), adjusted for net new client account activity through December 31, 2024. NAV data for underlying investments is as of September 30, 2024, as reported by underlying managers up to the business day occurring on or after 100 days following September 30, 2024. When NAV data is not available by the business day occurring on or after 100 days following September 30, 2024, such NAVs are adjusted for cash activity following the last available reported NAV.

    Assets under management, or “AUM,” primarily reflects the assets associated with our separately managed accounts (“SMAs”) and focused commingled funds. We classify assets as AUM if we have full discretion over the investment decisions in an account or have responsibility or custody of assets. Although management fees are based on a variety of factors and are not linearly correlated with AUM, we believe AUM is a useful metric for assessing the relative size and scope of our asset management business.

    Our AUM is calculated as the sum of (i) the net asset value (“NAV”) of client portfolio assets, including the StepStone Funds and (ii) the unfunded commitments of clients to the underlying investments and the StepStone Funds. Our AUM reflects the investment valuations in respect of the underlying investments of our funds and accounts on a three-month lag, adjusted for new client account activity through the period end. Our AUM does not include post-period investment valuation or cash activity. AUM as of December 31, 2024 reflects final data for the prior period (September 30, 2024), adjusted for net new client account activity through December 31, 2024. NAV data for underlying investments is as of September 30, 2024, as reported by underlying managers up to the business day occurring on or after 100 days following September 30, 2024. When NAV data is not available by the business day occurring on or after 100 days following September 30, 2024, such NAVs are adjusted for cash activity following the last available reported NAV.

    Consolidated Funds refer to the StepStone Funds that we are required to consolidate as of the applicable reporting period. We consolidate funds and other entities in which we hold a controlling financial interest.

    Consolidated VIEs refer to the variable interest entities that we are required to consolidate as of the applicable reporting period. We consolidate VIEs in which we hold a controlling financial interest.

    Fee-earning AUM, or “FEAUM,” reflects the assets from which we earn management fee revenue (i.e., fee basis) and includes assets in our SMAs, focused commingled funds and assets held directly by our clients for which we have fiduciary oversight and are paid fees as the manager of the assets. Our SMAs and focused commingled funds typically pay management fees based on capital commitments, net invested capital and, in certain cases, NAV, depending on the fee terms. Management fees are only marginally affected by market appreciation or depreciation because substantially all of the StepStone Funds pay management fees based on capital commitments or net invested capital. As a result, management fees and FEAUM are not materially affected by changes in market value. We believe FEAUM is a useful metric in order to assess assets forming the basis of our management fee revenue.

    Legacy Greenspring entities refers to certain entities for which the Company, indirectly through its subsidiaries, became the sole and/or managing member in connection with the Greenspring acquisition.

    SSG refers solely to StepStone Group Inc., a Delaware corporation, and not to any of its subsidiaries.

    StepStone Funds refer to SMAs and focused commingled funds of the Company, including acquired Greenspring funds, for which the Partnership or one of its subsidiaries acts as both investment adviser and general partner or managing member.

    The Partnership refers solely to StepStone Group LP, a Delaware limited partnership, and not to any of its subsidiaries.

    Total capital responsibility equals AUM plus AUA. AUM includes any accounts for which StepStone Group has full discretion over the investment decisions, has responsibility to arrange or effectuate transactions, or has custody of assets. AUA refers to accounts for which StepStone Group provides advice or consultation but for which the firm does not have discretionary authority, responsibility to arrange or effectuate transactions, or custody of assets.

    Undeployed fee-earning capital represents the amount of capital commitments to StepStone Funds that has not yet been invested or considered active but will generate management fee revenue once invested or activated. We believe undeployed fee-earning capital is a useful metric for measuring the amount of capital that we can put to work in the future and thus earn management fee revenue thereon.

    The MIL Network –

  • MIL-OSI: Cerence Announces First Quarter Fiscal 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    BURLINGTON, Mass., Feb. 06, 2025 (GLOBE NEWSWIRE) — Cerence Inc. (NASDAQ: CRNC) (“Cerence AI”), a global industry leader in AI for transportation, today reported its first quarter fiscal year 2025 results for the quarter ended December 31, 2024.

     
    ResultsSummary(1,2)
    (in millions, except per share data)
           
        Three Months Ended  
        December 31,  
        2024     2023  
    GAAP revenue   $ 50.9     $ 138.3  
    GAAP gross margin     65.0 %     81.0 %
    Non-GAAP gross margin     65.9 %     81.5 %
    GAAP operating margin     -33.3 %     42.3 %
    Non-GAAP operating margin     -1.0 %     49.4 %
    GAAP net (loss) income   $ (24.3 )   $ 23.9  
    GAAP net (loss) income margin     -47.7 %     17.2 %
    Non-GAAP net (loss) income   $ (1.5 )   $ 54.3  
    Adjusted EBITDA   $ 1.4     $ 70.4  
    Adjusted EBITDA margin     2.7 %     50.9 %
    GAAP net (loss) income per share – diluted   $ (0.57 )   $ 0.53  
    Non-GAAP net (loss) income per share – diluted   $ (0.03 )   $ 1.12  
    (1) As previously disclosed, Q1FY24 revenue includes the non-cash revenue associated with the Toyota “Legacy” contract and related impacts totaling $86.6M.
    (2) Please refer to the “Discussion of Non-GAAP Financial Measures” and “Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures” included elsewhere in this release for more information regarding our use of non-GAAP financial measures.
       

    “I’m incredibly proud of the team’s progress and our performance in Q1, most notably beating the upper end of guidance on top-line revenue and adjusted EBITDA and showing strong free cash flow,” said Brian Krzanich, CEO, Cerence AI. “We believe we have solid momentum for 2025: we’ve made significant progress on our generative AI roadmap, achieving critical development milestones for our next-gen agentic, conversational AI platform. We have continued momentum with our automaker customers, including six design wins and two wins for our generative AI solutions, as well as six major customer SOPs and two generative AI SOPs within the quarter. In addition, our transformation and cost reduction initiatives are having a solid impact on the business. As we look to the future, we believe we are well positioned to continue on our path to long-term, sustainable growth and profitability.”

    Cerence Key Performance Indicators
    To help investors gain further insight into the Cerence business and its performance, management provides a set of key performance indicators that includes:

    Key Performance Indicator1   Q1FY25  
    Percent of worldwide auto production with Cerence Technology (TTM)     51 %
    Change in number of Cerence connected cars shipped2 (TTM over prior year TTM)     5 %
    Change in Adjusted Total Billings (TTM over prior year TTM)     3 %
    (1) Please refer to the “Key Performance Indicators” section included elsewhere in this release for more information regarding the definitions and our use of key performance indicators.
    (2) Based on IHS Markit data, global auto production decreased 2% over the same time period ended on December 31, 2024.
       

    Second Quarter and Full Year Fiscal 2025 Outlook
    For the fiscal quarter ending March 31, 2025, revenue is expected to be in the range of $74 million to $77 million. This includes $20 million of projected Fixed License revenue expected to be signed during the quarter. Gross margins are projected between 74% and 76% and net income is projected in the range of $1 million to $5 million. Adjusted EBITDA is expected to be in the range of $18 million to $22 million.

    Guidance for the full fiscal year ending September 30, 2025 remains unchanged.

    The adjusted EBITDA guidance excludes amortization of acquired intangible assets, stock-based compensation, restructuring and other costs.

    Additional details regarding guidance will be provided during the earnings call.

    Cerence Conference Call and Webcast
    The company will host a live conference call and webcast with slides to discuss the results today at 5:00pm Eastern Time / 2:00pm Pacific Time. Interested investors and analysts are invited to dial into the conference call by registering here.

    Webcast access will also be available on the Investor Information section of the company’s website at https://www.cerence.com/investors/events-and-resources.

    A replay of the webcast can be accessed by visiting the company’s website 90 minutes following the conference call at https://www.cerence.com/investors/events-and-resources.

    Forward Looking Statements
    Statements in this press release regarding: Cerence’s future performance, results and financial condition; expected growth and profitability; outlook and momentum; transformation plans and cost efficiency initiatives, including the estimated net annualized cost savings; strategy; opportunities; business, industry and market trends; strategy regarding fixed contracts and its impact on financial results; backlog; revenue visibility; revenue timing and mix; demand for Cerence products; innovation and new product offerings, including AI technology; expected benefits of technology partnerships; cost efficiency initiatives; and management’s future expectations, estimates, assumptions, beliefs, goals, objectives, targets, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “goal,” “anticipates,” “projects,” “forecasts,” “expects,” “intends,” “continues,” “will,” “may,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. Although we believe forward-looking statements are based upon reasonable assumptions, such statements involve known and unknown risk, uncertainties and other factors, which may cause actual results or performance of the company to be materially different from any future results or performance expressed or implied by such forward-looking statements including but not limited to: the highly competitive and rapidly changing market in which we operate; adverse conditions in the automotive industry, the related supply chain and semiconductor shortage, or the global economy more generally; volatility in the political, legal and regulatory environment in which we operate, including trade, tariffs and other policies implemented by the new administration or actions taken by other countries in response; automotive production delays; changes in customer forecasts; the impacts of the COVID-19 pandemic on our and our customers’ businesses; the ongoing conflicts in Ukraine and the Middle East; our inability to control and successfully manage our expenses and cash position; our inability to deliver improved financial results from process optimization efforts and cost reduction actions; escalating pricing pressures from our customers; the impact on our business of the transition to a lower level of fixed contracts, including the failure to achieve such a transition; our failure to win, renew or implement service contracts; the cancellation or postponement of existing contracts; the loss of business from any of our largest customers; effects of customer defaults; our inability to successfully introduce new products, applications and services; our strategies to increase cloud offerings and deploy generative AI and large language models (LLMs); the inability to expand into adjacent markets; the inability to recruit and retain qualified personnel; disruptions arising from transitions in management personnel, including the transition to our new Chief Executive Officer; cybersecurity and data privacy incidents; failure to protect our intellectual property; defects or interruptions in service with respect to our products; fluctuating currency rates and interest rates; inflation; financial and credit market volatility; restrictions on our current and future operations under the terms of our debt, the use of cash to service or repay our debt; and our inability to generate sufficient cash from our operations; and the other factors discussed in our most recent Annual Report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the Securities and Exchange Commission. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

    Discussion of Non-GAAP Financial Measures
    We believe that providing the non-GAAP information in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors to not only better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP.

    We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. While our management uses these non-GAAP financial measures as a tool to enhance their understanding of certain aspects of our financial performance, our management does not consider these measures to be a substitute for, or superior to, the information provided by GAAP financial statements.

    Consistent with this approach, we believe that disclosing non-GAAP financial measures to the readers of our financial statements provides such readers with useful supplemental data that, while not a substitute for GAAP financial statements, allows for greater transparency in the review of our financial and operational performance. In assessing the overall health of the business during the three months ended December 31, 2024 and 2023, our management has either included or excluded the following items in general categories, each of which is described below.

    Adjusted EBITDA.
    Adjusted EBITDA is defined as net income attributable to Cerence Inc. before net income (loss) attributable to income tax (benefit) expense, other income (expense) items, net, depreciation and amortization expense, and excluding amortization of acquired intangible assets, stock-based compensation, and restructuring and other costs, net or impairment charges related to fixed and intangible assets and gains or losses on the sale of long-lived assets, if any. From time to time we may exclude from Adjusted EBITDA the impact of events, gains, losses or other charges (such as significant legal settlements) that affect the period-to-period comparability of our operating performance. Other income (expense) items, net include interest expense, interest income, and other income (expense), net (as stated in our Condensed Consolidated Statement of Operations). Our management and Board of Directors use this financial measure to evaluate our operating performance. It is also a significant performance measure in our annual incentive compensation programs.

    Restructuring and other costs, net.
    Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside the ordinary course of our business such as employee severance costs, consulting costs relating to our transformation initiatives, and costs for consolidating duplicate facilities.

    Amortization of acquired intangible assets.
    We exclude the amortization of acquired intangible assets from non-GAAP expense and income measures. These amounts are inconsistent in amount and frequency and are significantly impacted by the timing and size of acquisitions. Providing a supplemental measure which excludes these charges allows management and investors to evaluate results “as-if” the acquired intangible assets had been developed internally rather than acquired and, therefore, provides a supplemental measure of performance in which our acquired intellectual property is treated in a comparable manner to our internally developed intellectual property. Although we exclude amortization of acquired intangible assets from our non-GAAP expenses, we believe that it is important for investors to understand that such intangible assets contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Future acquisitions may result in the amortization of additional intangible assets.

    Non-cash expenses.
    We provide non-GAAP information relative to the following non-cash expenses: (i) stock-based compensation; and (ii) non-cash interest. These items are further discussed as follows:

    i) Stock-based compensation. Because of varying valuation methodologies, subjective assumptions and the variety of award types, we exclude stock-based compensation from our operating results. We evaluate performance both with and without these measures because compensation expense related to stock-based compensation is typically non-cash and awards granted are influenced by the Company’s stock price and other factors such as volatility that are beyond our control. The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. As such, we do not include such charges in operating plans. Stock-based compensation will continue in future periods.
    ii) Non-cash interest. We exclude non-cash interest because we believe that excluding this expense provides management, as well as other users of the financial statements, with a valuable perspective on the cash-based performance and health of the business, including the current near-term projected liquidity. Non-cash interest expense will continue in future periods.
       

    Other expenses.
    We exclude certain other expenses that result from unplanned events outside the ordinary course of continuing operations, in order to measure operating performance and current and future liquidity both with and without these expenses. By providing this information, we believe management and the users of the financial statements are better able to understand the financial results of what we consider to be our organic, continuing operations. Included in these expenses are items such as other charges (credits), net, (gains) losses from extinguishment of debt, and changes in indemnification assets corresponding with the release of pre-spin liabilities for uncertain tax positions.

    Adjustments to income tax provision.
    Adjustments to our GAAP income tax provision to arrive at non-GAAP net income is determined based on our non-GAAP pre-tax income. Additionally, as our non-GAAP profitability is higher based on the non-GAAP adjustments, we adjust the GAAP tax provision to remove valuation allowances and related effects based on the higher level of reported non-GAAP profitability. We also exclude from our non-GAAP tax provision certain discrete tax items as they occur.

    Key Performance Indicators
    We believe that providing key performance indicators (“KPIs”) allows investors to gain insight into the way management views the performance of the business. We further believe that providing KPIs allows investors to better understand information used by management to evaluate and measure such performance. KPIs should not be considered superior to, or a substitute for, operating results prepared in accordance with GAAP. In assessing the performance of the business during the three months ended December 31, 2024, our management has reviewed the following KPIs, each of which is described below:

    • Percent of worldwide auto production with Cerence Technology: The number of Cerence enabled cars shipped as compared to IHS Markit car production data.
    • Change in number of Cerence connected cars shipped: The year-over-year change in the number of cars shipped with Cerence connected solutions. Amounts calculated on a TTM basis.
    • Change in Adjusted total billings YoY (TTM): The year over year change in total billings excluding Professional Services, prepay billings and adjusted for prepay consumption.

    ____________

    See the tables at the end of this press release for non-GAAP reconciliations to the most directly comparable GAAP measures.

    To learn more about Cerence AI, visit www.cerence.ai, and follow the company on LinkedIn.

    About Cerence Inc.
    Cerence Inc. (NASDAQ: CRNC) is a global industry leader in creating intuitive, seamless, AI-powered experiences across automotive and transportation. Leveraging decades of innovation and expertise in voice, generative AI, and large language models, Cerence powers integrated experiences that create safer, more connected, and more enjoyable journeys for drivers and passengers alike. With more than 500 million cars shipped with Cerence technology, the company partners with leading automakers, transportation OEMs, and technology companies to advance the next generation of user experiences. Cerence is headquartered in Burlington, Massachusetts, with operations globally and a worldwide team dedicated to pushing the boundaries of AI innovation. For more information, visit www.cerence.ai.

    Contact Information
    Investor Relations | Email: investorrelations@cerence.com 

     
    CERENCE INC.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
           
        Three Months Ended  
        December 31,  
        2024     2023  
    Revenues:            
    License   $ 22,725     $ 20,823  
    Connected services     13,707       96,820  
    Professional services     14,464       20,692  
    Total revenues     50,896       138,335  
    Cost of revenues:            
    License     1,782       1,604  
    Connected services     6,311       7,303  
    Professional services     9,731       17,325  
    Amortization of intangible assets     —       103  
    Total cost of revenues     17,824       26,335  
    Gross profit     33,072       112,000  
    Operating expenses:            
    Research and development     20,869       33,306  
    Sales and marketing     4,766       6,071  
    General and administrative     12,754       12,793  
    Amortization of intangible assets     554       545  
    Restructuring and other costs, net     11,062       705  
    Total operating expenses     50,005       53,420  
    (Loss) income from operations     (16,933 )     58,580  
    Interest income     1,437       1,432  
    Interest expense     (3,393 )     (3,236 )
    Other income, net     272       1,422  
    (Loss) income before income taxes     (18,617 )     58,198  
    Provision for income taxes     5,671       34,341  
    Net (loss) income   $ (24,288 )   $ 23,857  
    Net (loss) income per share:            
    Basic   $ (0.57 )   $ 0.58  
    Diluted   $ (0.57 )   $ 0.53  
    Weighted-average common share outstanding:            
    Basic     42,897       41,186  
    Diluted     42,897       49,255  
                     
     
    CERENCE INC.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share amounts)
                 
        December 31,     September 30,  
        2024     2024  
        (Unaudited)        
    ASSETS            
    Current assets:            
    Cash and cash equivalents   $ 104,103       121,485  
    Marketable securities     3,889       5,502  
    Accounts receivable, net of allowances of $53 and $1,613     47,671       62,755  
    Deferred costs     4,739       5,286  
    Prepaid expenses and other current assets     39,670       70,481  
    Total current assets     200,072       265,509  
    Long-term marketable securities     2,552       3,453  
    Property and equipment, net     29,371       30,139  
    Deferred costs     15,539       18,051  
    Operating lease right of use assets     13,156       12,879  
    Goodwill     288,886       296,858  
    Intangible assets, net     1,059       1,706  
    Deferred tax assets     46,035       51,398  
    Other assets     20,858       22,365  
    Total assets   $ 617,528     $ 702,358  
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Current liabilities:            
    Accounts payable   $ 7,609     $ 3,959  
    Deferred revenue     47,626       52,822  
    Short-term operating lease liabilities     3,828       4,528  
    Short-term debt     59,954       87,094  
    Accrued expenses and other current liabilities     32,967       68,405  
    Total current liabilities     151,984       216,808  
    Long-term debt     196,208       194,812  
    Deferred revenue, net of current portion     113,444       114,354  
    Long-term operating lease liabilities     10,071       8,803  
    Other liabilities     25,119       26,484  
    Total liabilities     496,826       561,261  
    Stockholders’ Equity:            
    Common stock, $0.01 par value, 560,000 shares authorized; 42,988 and 41,924 shares issued and outstanding, respectively     430       419  
    Accumulated other comprehensive loss     (29,785 )     (25,912 )
    Additional paid-in capital     1,096,085       1,088,330  
    Accumulated deficit     (946,028 )     (921,740 )
    Total stockholders’ equity     120,702       141,097  
    Total liabilities and stockholders’ equity   $ 617,528     $ 702,358  
                     
     
    CERENCE INC.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
           
        Three Months Ended  
        December 31,  
        2024     2023  
    Cash flows from operating activities:            
    Net (loss) income   $ (24,288 )   $ 23,857  
    Adjustments to reconcile net (loss) income to net cash provided by (used in) operations:            
    Depreciation and amortization     2,445       2,686  
    Provision for expected credit loss reserve     207       –  
    Stock-based compensation     7,771       8,380  
    Non-cash interest expense     1,861       1,468  
    Gain on debt extinguishment     (327 )     –  
    Deferred tax provision     4,927       30,298  
    Unrealized foreign currency transaction losses (gains)     1,997       (2,012 )
    Other, net     (33 )     382  
    Changes in operating assets and liabilities:            
    Accounts receivable     8,800       4,933  
    Prepaid expenses and other assets     27,201       1,170  
    Deferred costs     1,859       2,589  
    Accounts payable     3,814       2,382  
    Accrued expenses and other liabilities     (33,087 )     3,712  
    Deferred revenue     6,107       (82,660 )
    Net cash provided by (used in) operating activities     9,254       (2,815 )
    Cash flows from investing activities:            
    Capital expenditures     (1,360 )     (931 )
    Sale and maturities of marketable securities     2,493       2,442  
    Other investing activities     (374 )     (322 )
    Net cash provided by investing activities     759       1,189  
    Cash flows from financing activities:            
    Principal payments of short-term debt     (26,964 )     –  
    Common stock repurchases for tax withholdings for net settlement of equity awards     (1,369 )     (6,209 )
    Principal payment of lease liabilities arising from a finance lease     (115 )     (122 )
    Proceeds from the issuance of common stock     1,364       6,201  
    Net cash used in financing activities     (27,084 )     (130 )
    Effects of exchange rate changes on cash and cash equivalents     (311 )     (662 )
    Net change in cash and cash equivalents     (17,382 )     (2,418 )
    Cash and cash equivalents at beginning of period     121,485       101,154  
    Cash and cash equivalents at end of period   $ 104,103     $ 98,736  
                     
     
    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures
    (unaudited – in thousands)
           
        Three Months Ended  
        December 31,  
        2024     2023  
    GAAP revenue   $ 50,896     $ 138,335  
                 
    GAAP gross profit   $ 33,072     $ 112,000  
    Stock-based compensation     490       641  
    Amortization of intangible assets     –       103  
    Non-GAAP gross profit   $ 33,562     $ 112,744  
    GAAP gross margin     65.0 %     81.0 %
    Non-GAAP gross margin     65.9 %     81.5 %
                 
    GAAP operating (loss) income   $ (16,933 )   $ 58,580  
    Stock-based compensation*     4,808       8,380  
    Amortization of intangible assets     554       648  
    Restructuring and other costs, net*     11,062       705  
    Non-GAAP operating (loss) income   $ (509 )   $ 68,313  
    GAAP operating margin     -33.3 %     42.3 %
    Non-GAAP operating margin     -1.0 %     49.4 %
                 
    GAAP net (loss) income   $ (24,288 )   $ 23,857  
    Stock-based compensation*     4,808       8,380  
    Amortization of intangible assets     554       648  
    Restructuring and other costs, net*     11,062       705  
    Depreciation     1,891       2,038  
    Total other expense, net     (1,684 )     (382 )
    Provision for income taxes     5,671       34,341  
    Adjusted EBITDA   $ 1,382     $ 70,351  
    GAAP net (loss) income margin     -47.7 %     17.2 %
    Adjusted EBITDA margin     2.7 %     50.9 %
    * – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for Q1’25.            
                 
     
    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures (cont.)
    (unaudited – in thousands, except per share data)
           
        Three Months Ended  
        December 31,  
        2024     2023  
    GAAP net (loss) income   $ (24,288 )   $ 23,857  
    Stock-based compensation*     4,808       8,380  
    Amortization of intangible assets     554       648  
    Restructuring and other costs, net*     11,062       705  
    Gain on debt extinguishment     (327 )     –  
    Non-cash interest expense     1,861       1,468  
    Other     (33 )     (27 )
    Adjustments to income tax expense     4,895       19,259  
    Non-GAAP net (loss) income   $ (1,468 )   $ 54,290  
                 
    Adjusted EPS:            
    GAAP Numerator:            
    Net (loss) income attributed to common shareholders – basic   $ (24,288 )   $ 23,857  
    Interest on the Notes, net of tax     –       2,250  
    Net (loss) income attributed to common shareholders – diluted   $ (24,288 )   $ 26,107  
                 
    Non-GAAP Numerator:            
    Net (loss) income attributed to common shareholders – basic   $ (1,468 )   $ 54,290  
    Interest on the Notes, net of tax     –       1,120  
    Net (loss) income attributed to common shareholders – diluted   $ (1,468 )   $ 55,410  
                 
    GAAP Denominator:            
    Weighted-average common shares outstanding – basic     42,897       41,186  
    Adjustment for diluted shares     –       8,069  
    Weighted-average common shares outstanding – diluted     42,897       49,255  
                 
    Non-GAAP Denominator:            
    Weighted-average common shares outstanding- basic     42,897       41,186  
    Adjustment for diluted shares     –       8,069  
    Weighted-average common shares outstanding – diluted     42,897       49,255  
                 
    GAAP net (loss) income per share – diluted   $ (0.57 )   $ 0.53  
    Non-GAAP net (loss) income per share – diluted   $ (0.03 )   $ 1.12  
                 
    GAAP net cash provided by (used in) operating activities   $ 9,254     $ (2,815 )
    Capital expenditures     (1,360 )     (931 )
    Free Cash Flow   $ 7,894     $ (3,746 )
    * – $3.0 million in stock-based compensation is included in Restructuring and other costs, net for Q1’25.            
                 
     
    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures (cont.)
    (unaudited – in thousands)
                 
        Q2 2025     FY2025  
        Low     High     Low     High  
    GAAP revenue   $ 74,000     $ 77,000     $ 236,000     $ 247,000  
                             
    GAAP gross profit   $ 54,700     $ 58,700     $ 158,400     $ 169,400  
    Stock-based compensation     700       700       2,500       2,500  
    Amortization of intangible assets     –       –       –       –  
    Non-GAAP gross profit   $ 55,400     $ 59,400     $ 160,900     $ 171,900  
    GAAP gross margin     74 %     76 %     67 %     69 %
    Non-GAAP gross margin     75 %     77 %     68 %     70 %
                             
    GAAP operating income (loss)   $ 7,100     $ 11,100     $ (27,100 )   $ (16,100 )
    Stock-based compensation     7,000       7,000       22,500       22,500  
    Amortization of intangible assets     500       500       1,600       1,600  
    Restructuring and other costs, net     1,300       1,300       8,100       8,100  
    Non-GAAP operating income   $ 15,900     $ 19,900     $ 5,100     $ 16,100  
    GAAP operating margin     10 %     14 %     -11 %     -7 %
    Non-GAAP operating margin     21 %     26 %     2 %     7 %
                             
    GAAP net income (loss)   $ 1,200     $ 5,200     $ (39,600 )   $ (28,600 )
    Stock-based compensation     7,000       7,000       22,500       22,500  
    Amortization of intangible assets     500       500       1,600       1,600  
    Restructuring and other costs, net     1,300       1,300       8,100       8,100  
    Depreciation     1,900       1,900       10,200       10,200  
    Total other expense, net     (1,300 )     (1,300 )     (5,100 )     (5,100 )
    Provision for income taxes     4,600       4,600       7,400       7,400  
    Adjusted EBITDA   $ 17,800     $ 21,800     $ 15,300     $ 26,300  
    GAAP net income (loss) margin     2 %     7 %     -17 %     -12 %
    Adjusted EBITDA margin     24 %     28 %     6 %     11 %
                                     
     
    CERENCE INC.
    Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures (cont.)
    (unaudited – in thousands)
                 
        Q2 2025     FY2025  
        Low     High     Low     High  
    GAAP net income (loss)   $ 1,200     $ 5,200     $ (39,600 )   $ (28,600 )
    Stock-based compensation     7,000       7,000       22,500       22,500  
    Amortization of intangibles     500       500       1,600       1,600  
    Restructuring and other costs, net     1,300       1,300       8,100       8,100  
    Non-cash interest expense     1,500       1,500       5,500       5,500  
    Other     –       –       (100 )     (100 )
    Adjustments to income tax expense     1,500       1,500       (4,600 )     (4,600 )
    Non-GAAP net income (loss)   $ 13,000     $ 17,000     $ (6,600 )   $ 4,400  
                             
    Adjusted EPS:                        
    GAAP Numerator:                        
    Net income (loss) attributed to common shareholders – basic and diluted   $ 1,200     $ 5,200     $ (39,600 )   $ (28,600 )
                             
    Non-GAAP Numerator:                        
    Net income (loss) attributed to common shareholders – basic   $ 13,000     $ 17,000     $ (6,600 )   $ 4,400  
    Interest on the Notes, net of tax     900       900       –       –  
    Net income (loss) attributed to common shareholders – diluted   $ 13,900     $ 17,900     $ (6,600 )   $ 4,400  
                             
    GAAP Denominator:                        
    Weighted-average common shares outstanding – basic     43,000       43,000       43,000       43,000  
    Adjustment for diluted shares     100       100       –       –  
    Weighted-average common shares outstanding – diluted     43,100       43,100       43,000       43,000  
                             
    Non-GAAP Denominator:                        
    Weighted-average common shares outstanding- basic     43,000       43,000       43,000       43,000  
    Adjustment for diluted shares     6,800       6,800       –       100  
    Weighted-average common shares outstanding – diluted     49,800       49,800       43,000       43,100  
                             
    GAAP net income (loss) per share – diluted   $ 0.03     $ 0.12     $ (0.92 )   $ (0.67 )
    Non-GAAP net income (loss) per share – diluted   $ 0.28     $ 0.36     $ (0.15 )   $ 0.10  
                             
    GAAP net cash provided by operating activities               $ 34,000     $ 40,000  
    Capital expenditures                 (14,000 )     (10,000 )
    Free Cash Flow               $ 20,000     $ 30,000  
                                 

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter 2024 Highlights

    • Total revenue of $1.66 billion, up 17% year over year
    • Product revenue of $574 million, up 18% year over year
    • Billings of $2.00 billion, up 7% year over year1
    • Record GAAP operating margin of 35%
    • Record Non-GAAP operating margin of 39%1
    • Unified SASE ARR2up 28% and Security Operations ARR2up 32%, year over year
    • Ranked #7 on the Forbes Most Trusted Companies in America 2025 list, the only cybersecurity company in the top 50

    Full Year 2024 Highlights

    • Total revenue of $5.96 billion, up 12% year over year
    • Service revenue of $4.05 billion, up 20% year over year
    • Record GAAP operating margin of 30%
    • Record Non-GAAP operating margin of 35%1
    • Remaining performance obligations of $6.42 billion, up 12% year over year
    • Cash flow from operations of $2.26 billion
    • Free cash flow of $1.88 billion1
    • Exceeded the ‘Rule of 45’ for the fifth consecutive year

    SUNNYVALE, Calif., Feb. 06, 2025 (GLOBE NEWSWIRE) — Fortinet® (Nasdaq: FTNT), a global cybersecurity leader driving the convergence of networking and security, today announced financial results for the fourth quarter of 2024 and full year ended December 31, 2024.

    “In the fourth quarter, we successfully balanced growth and profitability as our non-GAAP operating margin increased 720 basis points year-over-year to a company record of 39%, while revenue grew 17%,” said Ken Xie, Founder, Chairman and Chief Executive Officer of Fortinet. “We continue to execute our strategy of investing in the high-growth Unified SASE and Security Operations markets, while strengthening our position in Secure Networking. Our customers are increasingly recognizing the benefits of a single-vendor approach to SASE, and we expect to emerge as a leader in this space, being the only company to natively develop all SASE functions within a unified operating system, FortiOS, which seamlessly integrates networking and security capabilities.”

    Financial Summary for the Fourth Quarter of 2024

    • Revenue: Total revenue was $1.66 billion for the fourth quarter of 2024, an increase of 17.3% compared to $1.42 billion for the same quarter of 2023.
    • Service Revenue: Service revenue was $1.09 billion for the fourth quarter of 2024, an increase of 17.2% compared to $927.0 million for the same quarter of 2023.
    • Product Revenue: Product revenue was $574.0 million for the fourth quarter of 2024, an increase of 17.6% compared to $488.1 million for the same quarter of 2023.
    • Billings1: Total billings were $2.00 billion for the fourth quarter of 2024, an increase of 7.4% compared to $1.86 billion for the same quarter of 2023.
    • Unified SASE ARR2: Unified SASE ARR was $1.12 billion for the fourth quarter of 2024, an increase of 27.9% compared to $875.3 million for the same quarter of 2023.
    • Security Operations ARR2: Security Operations ARR was $422.4 million for the fourth quarter of 2024, an increase of 32.2% compared to $319.6 million for the same quarter of 2023.
    • GAAP Operating Income and Margin: GAAP operating income was $574.1 million for the fourth quarter of 2024, representing a GAAP operating margin of 34.6%. GAAP operating income was $385.4 million for the same quarter of 2023, representing a GAAP operating margin of 27.2%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $650.9 million for the fourth quarter of 2024, representing a non-GAAP operating margin of 39.2%. Non-GAAP operating income was $453.5 million for the same quarter of 2023, representing a non-GAAP operating margin of 32.0%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $526.2 million for the fourth quarter of 2024, compared to GAAP net income of $310.9 million for the same quarter of 2023. GAAP diluted net income per share was $0.68 for the fourth quarter of 2024, based on 775.2 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $0.40 for the same quarter of 2023, based on 772.3 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $571.5 million for the fourth quarter of 2024, compared to non-GAAP net income of $392.0 million for the same quarter of 2023. Non-GAAP diluted net income per share was $0.74 for the fourth quarter of 2024, based on 775.2 million diluted weighted-average shares outstanding, compared to $0.51 for the same quarter of 2023, based on 772.3 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $477.6 million for the fourth quarter of 2024, compared to $191.7 million for the same quarter of 2023.
    • Free Cash Flow1: Free cash flow was $380.0 million for the fourth quarter of 2024, compared to $164.8 million for the same quarter of 2023.

    Financial Summary for the Full Year 2024

    • Revenue: Total revenue was $5.96 billion for 2024, an increase of 12.3% compared to $5.30 billion in 2023.
    • Service Revenue: Service revenue was $4.05 billion for 2024, an increase of 19.8% compared to $3.38 billion in 2023.
    • Product Revenue: Product revenue was $1.91 billion for 2024, a decrease of 1.0% compared to $1.93 billion in 2023.
    • Billings1: Total billings were $6.53 billion for 2024, an increase of 2.1% compared to $6.40 billion in 2023.
    • Remaining performance obligations: Remaining performance obligations were $6.42 billion as of December 31, 2024, an increase of 11.7% compared to $5.75 billion as of December 31, 2023.
    • Deferred Revenue: Total deferred revenue was $6.36 billion as of December 31, 2024, an increase of 10.9% compared to $5.74 billion as of December 31, 2023.
    • GAAP Operating Income and Margin: GAAP operating income was $1.80 billion for 2024, representing a GAAP operating margin of 30.3%. GAAP operating income was $1.24 billion for 2023, representing a GAAP operating margin of 23.4%.
    • Non-GAAP Operating Income and Margin1: Non-GAAP operating income was $2.09 billion for 2024, representing a non-GAAP operating margin of 35.0%. Non-GAAP operating income was $1.51 billion for 2023, representing a non-GAAP operating margin of 28.4%.
    • GAAP Net Income and Diluted Net Income Per Share: GAAP net income was $1.75 billion for 2024, compared to GAAP net income of $1.15 billion for 2023. GAAP diluted net income per share was $2.26 for 2024, based on 771.9 million diluted weighted-average shares outstanding, compared to GAAP diluted net income per share of $1.46 for 2023, based on 788.2 million diluted weighted-average shares outstanding.
    • Non-GAAP Net Income and Diluted Net Income Per Share1: Non-GAAP net income was $1.83 billion for 2024, compared to non-GAAP net income of $1.29 billion for 2023. Non-GAAP diluted net income per share was $2.37 for 2024, based on 771.9 million diluted weighted-average shares outstanding, compared to $1.63 for 2023, based on 788.2 million diluted weighted-average shares outstanding.
    • Cash Flow: Cash flow from operations was $2.26 billion in 2024 compared to $1.94 billion in 2023.
    • Free Cash Flow1: Free cash flow was $1.88 billion in 2024, compared to $1.73 billion in 2023.

    Guidance

    For the first quarter of 2025, Fortinet currently expects:

    • Revenue in the range of $1.500 billion to $1.560 billion
    • Billings in the range of $1.520 billion to $1.600 billion
    • Non-GAAP gross margin in the range of 80.0% to 81.0%
    • Non-GAAP operating margin in the range of 30.0% to 31.0%
    • Diluted non-GAAP net income per share in the range of $0.52 to $0.54, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 774 million to 780 million.

    For the fiscal year 2025, Fortinet currently expects:

    • Revenue in the range of $6.650 billion to $6.850 billion
    • Service revenue in the range of $4.575 billion to $4.725 billion
    • Billings in the range of $7.200 billion to $7.400 billion
    • Non-GAAP gross margin in the range of 79.0% to 81.0%
    • Non-GAAP operating margin in the range of 31.0% to 33.0%
    • Diluted non-GAAP net income per share in the range of $2.41 to $2.47, assuming a non-GAAP effective tax rate of 18%. This assumes a diluted share count of 773 million to 783 million.

    These statements are forward looking and actual results may differ materially. Refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Our guidance with respect to non-GAAP financial measures excludes stock-based compensation, amortization of acquired intangible assets, charges in connection with litigation settlement, gain on intellectual property matters, gain on bargain purchase related to acquisition, non-cash charge of impairment on an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We have not reconciled our guidance with respect to non-GAAP financial measures to the corresponding GAAP measures because certain items that impact these measures are uncertain or out of our control, or cannot be reasonably predicted. Accordingly, a reconciliation of these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort.

    1 A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures”.
    2 ARR is defined as the annualized value of renewable / recurring customer agreements as of the measurement date, assuming any contract that expires during the next 12 months is renewed at its existing value.

    Conference Call Details

    Fortinet will host a conference call today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) to discuss the earnings results. A live webcast of the conference call and supplemental slides will be accessible from the Investor Relations page of Fortinet’s website at https://investor.fortinet.com and a replay will be archived and accessible at https://investor.fortinet.com/events-and-presentations.

    First Quarter 2025 Conference Participation Schedule:

    • Morgan Stanley Technology, Media & Telecom Conference
      March 4, 2025

    Members of Fortinet’s management team are expected to present at this conference and discuss the latest company strategies and initiatives. Fortinet’s conference presentations are expected to be available via webcast on the company’s website. To access the most updated information, pre-register and listen to the webcast of each event, please visit the Investor Presentation & Events page of Fortinet’s website at https://investor.fortinet.com/events-and-presentations. The schedule is subject to change.

    About Fortinet (www.fortinet.com)

    Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (“CERTs”), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog or FortiGuard Labs.

    Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAntenna, FortiAP, FortiAPCam, FortiAppSec, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCART, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDATA, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevice, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint, FortiExplorer, FortiExtender, FortiFirewall, FortiFlex, FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiStack, FortiSwitch, FortiTester, FortiTIP, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR and Lacework FortiCNAPP. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    FTNT-F

    Forward-Looking Statements

    This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements include statements regarding any indications related to future growth and market share gains, our strategy going forward, and guidance and expectations around future financial results, including guidance and expectations for the first quarter of 2025 and full year 2025, and any statements regarding our market opportunity and market size, and business momentum. Although we attempt to be accurate in making forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based such that actual results are materially different from our forward-looking statements in this release. Important factors that could cause results to differ materially from the statements herein include the following: general economic risks, including those caused by economic challenges, a possible economic downturn or recession and the effects of inflation or stagflation, rising interest rates or reduced information technology spending; supply chain challenges; negative impacts from the ongoing war in Ukraine and its related macroeconomic effects and our decision to reduce operations in Russia; competitiveness in the security market; the dynamic nature of the security market and its products and services; specific economic risks worldwide and in different geographies, and among different customer segments; uncertainty regarding demand and increased business and renewals from existing customers; sales execution risks, including risks in connection with the timing and completion of large strategic deals; uncertainties around continued success in sales growth and market share gains; uncertainties in market opportunities and the market size; actual or perceived vulnerabilities in our supply chain, products or services, and any actual or perceived breach of our network or our customers’ networks; longer sales cycles, particularly for larger enterprise, service providers, government and other large organization customers; the effectiveness of our salesforce and failure to convert sales pipeline into final sales; risks associated with successful implementation of multiple integrated software products and other product functionality risks; risks associated with integrating acquisitions and changes in circumstances and plans associated therewith, including, among other risks, changes in plans related to product and services integrations, product and services plans and sales strategies; sales and marketing execution risks; execution risks around new product development and introductions and innovation; litigation and disputes and the potential cost, distraction and damage to sales and reputation caused thereby or by other factors; cybersecurity threats, breaches and other disruptions; market acceptance of new products and services; the ability to attract and retain personnel; changes in strategy; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive, including advances in artificial intelligence; risks associated with the adoption of, and demand for, our products and services in general and by specific customer segments, including those caused by competition and pricing pressure; excess product inventory for any reason, including those caused by the effects of increased inflation and interest rates in certain geographies and the war in Ukraine; risks associated with business disruption caused by natural disasters and health emergencies such as earthquakes, fires, power outages, typhoons, floods, health epidemics and viruses, and by manmade events such as civil unrest, labor disruption, international trade disputes, international conflicts such as the war in Ukraine or tensions between China and Taiwan, terrorism, wars, and critical infrastructure attacks; tariffs, trade disputes and other trade barriers, and negative impact on sales based on geo-political dynamics and disputes and protectionist policies, including the impact of any future shutdowns of the U.S. government and the transition in administrations; and the other risk factors set forth from time to time in our most recent Annual Report on Form 10-K, our most recent Quarterly Report on Form 10-Q and our other filings with the Securities and Exchange Commission (“SEC”), copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from our investor relations department. All forward-looking statements herein reflect our opinions only as of the date of this release, and we undertake no obligation, and expressly disclaim any obligation, to update forward-looking statements herein in light of new information or future events.

    Non-GAAP Financial Measures

    We have provided in this release financial information that has not been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). These non-GAAP financial and liquidity measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.

    Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.

    Billings (non-GAAP). We define billings as revenue recognized in accordance with GAAP plus the change in deferred revenue from the beginning to the end of the period less any deferred revenue balances acquired from business combination(s) during the period. We consider billings to be a useful metric for management and investors because billings drive current and future revenue, which is an important indicator of the health and viability of our business. There are a number of limitations related to the use of billings instead of GAAP revenue. First, billings include amounts that have not yet been recognized as revenue and are impacted by the term of security and support agreements. Second, we may calculate billings in a manner that is different from peer companies that report similar financial measures. Management accounts for these limitations by providing specific information regarding GAAP revenue and evaluating billings together with GAAP revenue.

    Free cash flow (non-GAAP). We define free cash flow as net cash provided by operating activities minus purchases of property and equipment. We believe free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after capital expenditures, can be used for strategic opportunities, including repurchasing outstanding common stock, investing in our business, making strategic acquisitions and strengthening the balance sheet. A limitation of using free cash flow rather than the GAAP measures of cash provided by or used in operating activities, investing activities, and financing activities is that free cash flow does not represent the total increase or decrease in the cash and cash equivalents balance for the period because it excludes investing activities other than capital expenditures and cash flows from financing activities. Management accounts for this limitation by providing information about our capital expenditures and other investing and financing activities on the face of the cash flow statement and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources” in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting cash flows from investing and financing activities in our reconciliation of free cash flow. In addition, it is important to note that other companies, including companies in our industry, may not use free cash flow, may calculate free cash flow in a different manner than we do or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of free cash flow as a comparative measure.

    Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation, amortization of acquired intangible assets and charges in connection with litigation settlement, less gain on intellectual property matter and, when applicable, other significant non-recurring items in a given quarter. Non-GAAP operating margin is defined as non-GAAP operating income divided by GAAP revenue. We consider these non-GAAP financial measures to be useful metrics for management and investors because they exclude the items noted above so that our management and investors can compare our recurring core business operating results over multiple periods. There are a number of limitations related to the use of non-GAAP operating income instead of operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes the items noted above. Second, the components of the costs that we exclude from our calculation of non-GAAP operating income may differ from the components that peer companies exclude when they report their non-GAAP results of operations. Management accounts for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

    Non-GAAP net income and diluted net income per share. We define non-GAAP net income as net income plus the items noted above under non-GAAP operating income and operating margin. In addition, we adjust non-GAAP net income and diluted net income per share for a gain on bargain purchase related to acquisition, a non-cash charge of impairment on an equity method investment and a tax adjustment required for an effective tax rate on a non-GAAP basis, which differs from the GAAP effective tax rate. We define non-GAAP diluted net income per share as non-GAAP net income divided by the non-GAAP diluted weighted-average shares outstanding. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that we use non-GAAP operating income and non-GAAP operating margin. However, in order to provide a more complete picture of our recurring core business operating results, we include in non-GAAP net income and non-GAAP diluted net income per share, the tax adjustment required resulting in an effective tax rate on a non-GAAP basis, which often differs from the GAAP tax rate. We believe the non-GAAP effective tax rates we use are reasonable estimates of normalized tax rates for our current and prior fiscal years under our global operating structure. The same limitations described above regarding our use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP diluted net income per share. We account for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP diluted net income per share and evaluating non-GAAP net income and non-GAAP diluted net income per share together with net income and diluted net income per share calculated in accordance with GAAP.

    FORTINET, INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited, in millions)
     
      December 31,
    2024    		   December 31,
    2023
    ASSETS      
    CURRENT ASSETS:      
    Cash and cash equivalents $ 2,875.9     $ 1,397.9  
    Short-term investments   1,126.4       1,021.5  
    Marketable equity securities   64.2       21.0  
    Accounts receivable—net   1,463.4       1,402.0  
    Inventory   315.5       484.8  
    Prepaid expenses and other current assets   126.1       101.1  
    Total current assets   5,971.5       4,428.3  
    PROPERTY AND EQUIPMENT—NET   1,349.5       1,044.4  
    DEFERRED CONTRACT COSTS   622.9       605.6  
    DEFERRED TAX ASSETS   1,335.6       868.8  
    GOODWILL AND OTHER INTANGIBLE ASSETS—NET   350.4       161.8  
    OTHER ASSETS   133.2       150.0  
    TOTAL ASSETS $ 9,763.1     $ 7,258.9  
    LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)      
    CURRENT LIABILITIES:      
    Accounts payable $ 190.9     $ 204.3  
    Accrued liabilities   337.9       423.7  
    Accrued payroll and compensation   255.7       242.3  
    Deferred revenue   3,276.2       2,848.7  
    Total current liabilities   4,060.7       3,719.0  
    DEFERRED REVENUE   3,084.7       2,886.3  
    LONG-TERM DEBT   994.3       992.3  
    OTHER LIABILITIES   129.6       124.7  
    Total liabilities   8,269.3       7,722.3  
    COMMITMENTS AND CONTINGENCIES      
    STOCKHOLDERS’ EQUITY (DEFICIT):      
    Common stock   0.8       0.8  
    Additional paid-in capital   1,636.2       1,416.4  
    Accumulated other comprehensive loss   (26.1 )     (18.9 )
    Accumulated deficit   (117.1 )     (1,861.7 )
    Total stockholders’ equity (deficit)   1,493.8       (463.4 )
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) $ 9,763.1     $ 7,258.9  
    FORTINET, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited, in millions, except per share amounts)
     
      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    REVENUE:              
    Product $ 574.0     $ 488.1     $ 1,908.7     $ 1,927.3  
    Service   1,086.1       927.0       4,047.1       3,377.5  
    Total revenue   1,660.1       1,415.1       5,955.8       5,304.8  
    COST OF REVENUE:              
    Product   178.0       197.2       652.0       763.6  
    Service   136.5       118.7       505.6       473.6  
    Total cost of revenue   314.5       315.9       1,157.6       1,237.2  
    GROSS PROFIT:              
    Product   396.0       290.9       1,256.7       1,163.7  
    Service   949.6       808.3       3,541.5       2,903.9  
    Total gross profit   1,345.6       1,099.2       4,798.2       4,067.6  
    OPERATING EXPENSES:              
    Research and development   191.1       152.5       716.8       613.8  
    Sales and marketing   526.5       507.4       2,044.8       2,006.0  
    General and administrative   55.1       55.1       237.8       211.3  
    Gain on intellectual property matter   (1.2 )     (1.2 )     (4.6 )     (4.6 )
    Total operating expenses   771.5       713.8       2,994.8       2,826.5  
    OPERATING INCOME   574.1       385.4       1,803.4       1,241.1  
    INTEREST INCOME   42.3       30.5       155.2       119.7  
    INTEREST EXPENSE   (4.9 )     (5.4 )     (20.0 )     (21.0 )
    GAIN ON BARGAIN PURCHASE   —       —       106.3       —  
    OTHER INCOME (EXPENSE)—NET   6.9       5.1       13.6       (6.1 )
    INCOME BEFORE INCOME TAXES AND LOSS FROM EQUITY METHOD INVESTMENTS   618.4       415.6       2,058.5       1,333.7  
    PROVISION FOR INCOME TAXES   86.7       95.2       283.9       143.8  
    LOSS FROM EQUITY METHOD INVESTMENTS   (5.5 )     (9.5 )     (29.4 )     (42.1 )
    NET INCOME $ 526.2     $ 310.9     $ 1,745.2     $ 1,147.8  
    Net income per share:              
    Basic $ 0.69     $ 0.41     $ 2.28     $ 1.47  
    Diluted $ 0.68     $ 0.40     $ 2.26     $ 1.46  
    Weighted-average shares outstanding:              
    Basic   766.5       764.9       764.4       778.6  
    Diluted   775.2       772.3       771.9       788.2  
    FORTINET, INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited, in millions)
     
      Year Ended
      December 31,
    2024    		   December 31,
    2023
    CASH FLOWS FROM OPERATING ACTIVITIES:      
    Net income $ 1,745.2     $ 1,147.8  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Stock-based compensation   257.9       249.0  
    Amortization of deferred contract costs   293.7       266.3  
    Depreciation and amortization   122.8       113.4  
    Amortization of investment discounts   (48.8 )     (27.7 )
    Loss from equity method investments   29.4       42.1  
    Gain on bargain purchase   (106.3 )     —  
    Other   (15.2 )     18.5  
    Changes in operating assets and liabilities, net of impact of business combinations:      
    Accounts receivable—net   (45.4 )     (146.4 )
    Inventory   131.2       (253.5 )
    Prepaid expenses and other current assets   (13.7 )     (27.6 )
    Deferred contract costs   (311.1 )     (353.5 )
    Deferred tax assets   (223.2 )     (301.9 )
    Other assets   (11.0 )     17.7  
    Accounts payable   (10.2 )     (43.1 )
    Accrued liabilities   (106.7 )     137.4  
    Accrued payroll and compensation   —       23.4  
    Other liabilities   (8.3 )     (21.7 )
    Deferred revenue   577.8       1,095.3  
         Net cash provided by operating activities   2,258.1       1,935.5  
    CASH FLOWS FROM INVESTING ACTIVITIES:      
    Purchases of investments   (1,948.6 )     (1,855.8 )
    Sales of investments   0.5       4.0  
    Maturities of investments   1,891.7       1,414.8  
    Purchases of property and equipment   (378.9 )     (204.1 )
    Purchase of investment in privately held company   —       (8.5 )
    Payments made in connection with business combinations, net of cash acquired   (275.5 )     —  
    Purchases of marketable equity securities   (16.7 )     —  
    Other   0.1       0.3  
         Net cash used in investing activities   (727.4 )     (649.3 )
    CASH FLOWS FROM FINANCING ACTIVITIES:      
    Repurchase and retirement of common stock   (0.6 )     (1,500.5 )
    Proceeds from issuance of common stock   63.1       43.8  
    Taxes paid related to net share settlement of equity awards   (100.9 )     (112.5 )
    Other   (11.7 )     (1.2 )
         Net cash used in financing activities   (50.1 )     (1,570.4 )
    EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS   (2.6 )     (0.8 )
    NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   1,478.0       (285.0 )
    CASH AND CASH EQUIVALENTS—Beginning of year   1,397.9       1,682.9  
    CASH AND CASH EQUIVALENTS—End of year $ 2,875.9     $ 1,397.9  
    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures
    (Unaudited, in millions, except per share amounts)

    Reconciliation of GAAP operating income to non-GAAP operating income, operating margin, net income and diluted net income per share

      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Reconciliation of non-GAAP operating income:              
    GAAP operating income $ 574.1     $ 385.4     $ 1,803.4     $ 1,241.1  
    GAAP operating margin   34.6 %     27.2 %     30.3 %     23.4 %
    Add back:              
    Stock‐based compensation   66.5       64.0       260.2       251.6  
    Amortization of acquired intangible assets   11.5       5.3       23.1       18.9  
    Litigation-related matter (a)   —       —       3.2       —  
    Gain on intellectual property matter   (1.2 )     (1.2 )     (4.6 )     (4.6 )
    Non‐GAAP operating income $ 650.9     $ 453.5     $ 2,085.3     $ 1,507.0  
    Non‐GAAP operating margin   39.2 %     32.0 %     35.0 %     28.4 %
                   
    Reconciliation of non-GAAP net income:              
    GAAP net income $ 526.2     $ 310.9     $ 1,745.2     $ 1,147.8  
    Add back:              
    Stock‐based compensation   66.5       64.0       260.2       251.6  
    Amortization of acquired intangible assets   11.5       5.3       23.1       18.9  
    Litigation-related matter (a)   —       —       3.2       —  
    Gain on intellectual property matter   (1.2 )     (1.2 )     (4.6 )     (4.6 )
    Gain on bargain purchase (b)   —       —       (106.3 )     —  
    Tax adjustment (c)   (31.5 )     13.0       (95.9 )     (128.1 )
    Non-cash charge on equity method investment (d)   —       —       8.0       —  
    Non-GAAP net income $ 571.5     $ 392.0     $ 1,832.9     $ 1,285.6  
                   
    Non-GAAP net income per share, diluted              
    Non-GAAP net income $ 571.5     $ 392.0     $ 1,832.9     $ 1,285.6  
    Non-GAAP shares used in diluted net income per share calculations   775.2       772.3       771.9       788.2  
    Non-GAAP net income per share, diluted $ 0.74     $ 0.51     $ 2.37     $ 1.63  
                   
    Reconciliation of non-GAAP net income per share, diluted              
    GAAP net income per share, diluted $ 0.68     $ 0.40     $ 2.26     $ 1.46  
    Add back:              
    Non-GAAP adjustments to net income per share   0.06       0.11       0.11       0.17  
    Non-GAAP net income per share, diluted $ 0.74     $ 0.51     $ 2.37     $ 1.63  

    (a) To exclude a $3.2 million adjustment for a litigation settlement in the three months ended September 30, 2024.
    (b) To exclude a $106.3 million gain on bargain purchase related to our acquisition of Lacework Inc in the three months ended September 30, 2024.
    (c) Non-GAAP financial information is adjusted to an effective tax rate of 17% in the three months and year ended December 31, 2024 and 2023, respectively, on a non-GAAP basis, which differs from the GAAP effective tax rate.
    (d) To exclude an $8.0 million non-cash charge of impairment on our equity method investment in Linksys.

    Reconciliation of net cash provided by operating activities to free cash flow

      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net cash provided by operating activities $ 477.6     $ 191.7     $ 2,258.1     $ 1,935.5  
    Less: Purchases of property and equipment   (97.6 )     (26.9 )     (378.9 )     (204.1 )
    Free cash flow $ 380.0     $ 164.8     $ 1,879.2     $ 1,731.4  
    Net cash used in investing activities $ (79.9 )   $ (71.6 )   $ (727.4 )   $ (649.3 )
    Net cash used in financing activities $ (8.8 )   $ (910.1 )   $ (50.1 )   $ (1,570.4 )


    Reconciliation of total revenue to total billings

      Three Months Ended   Year Ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Total revenue $ 1,660.1     $ 1,415.1     $ 5,955.8     $ 5,304.8  
    Add: Change in deferred revenue   349.2       449.7       625.9       1,094.7  
    Less: Deferred revenue balance acquired in business acquisitions   (6.8 )     —       (49.2 )     —  
    Total billings $ 2,002.5     $ 1,864.8     $ 6,532.5     $ 6,399.5  
    Investor Contact: Media Contact:
       
    Aaron Ovadia Michelle Zimmermann
    Fortinet, Inc. Fortinet, Inc.
    408-235-7700 408-235-7700
    investors@fortinet.com pr@fortinet.com

    The MIL Network –

  • MIL-OSI: DTE Energy names Casey Santos to board of directors

    Source: GlobeNewswire (MIL-OSI)

    Detroit, Feb. 06, 2025 (GLOBE NEWSWIRE) — DTE Energy (NYSE: DTE) has named Casey Santos to its board of directors effective Feb. 6. Santos recently joined Caliber as chief technology officer. Prior to Caliber, Santos led Asurion’s global technology and procurement teams as their chief information officer. She has more than 25 years of experience as an executive leader, an independent board director for public and private organizations, and advisor with expertise across a diverse range of industries, business lines and functions.  

    “We are pleased to welcome Casey to DTE Energy’s board of directors,” said Jerry Norcia, chairman and CEO of DTE Energy. “Her deep expertise in leading innovation, digital transformation, artificial intelligence and cybersecurity will be invaluable to DTE as we work to build the grid of the future and deliver safe, reliable, affordable and cleaner energy to our customers now and in the years to come.”

    “DTE Energy’s mission to improve people’s lives with their energy directly aligns with my values,” Santos said.  “Energy is essential to modern life, and I look forward to contributing my personal energy to serve millions of people in Michigan and across the United States.” 

    Prior to her work at Asurion, Santos held technology leadership roles in the finance industry and was a strategy consultant with McKinsey serving clients in the United States and Europe. Santos began her career as a NASA Flight Controller supporting over 20 space shuttle missions, including the first MIR docking and Hubble Telescope repair missions.

    Santos earned a Bachelor of Science degree in aeronautics and astronautics from Massachusetts Institute of Technology and holds dual master’s degrees from the University of Pennsylvania, including a Master of Business Administration from the Wharton School and a Master of Arts in management from the Lauder Institute. She has been recognized for her contributions to the industry and community, most recently as a Top 100 Chief in Tech Leaders to Watch in 2024 by WomenTech Network, Nashville Technology Council’s CIO of the Year in 2023, and a HiTec 100 Leader in 2019 and 2023. She is a member of Latino Corporate Directors Association, Women Corporate Directors, NACD, and T200. She is the Board Chair of the Nashville Technology Council and works with non-profits to help advance STEM education and technology leadership.

    About DTE Energy 

    DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, x.com/DTE_Energy and facebook.com/dteenergy. 

    Attachment

    The MIL Network –

  • MIL-OSI: Microchip Technology Announces Financial Results for Third Quarter of Fiscal Year 2025

    Source: GlobeNewswire (MIL-OSI)

    • Net sales of $1.026 billion, down 11.8% sequentially and down 41.9% from the year ago quarter. Our updated guidance provided on December 2, 2024 was net sales of $1.025 billion.
    • On a GAAP basis: gross profit of 54.7%; operating income of $30.9 million and 3.0% of net sales; net loss of $53.6 million; and loss of $0.10 per diluted share. Our guidance provided on November 5, 2024 was for GAAP earnings (loss) per share of $(0.04) to $0.03 per diluted share.
    • On a Non-GAAP basis: gross profit of 55.4%; operating income of $210.7 million and 20.5% of net sales; net income of $107.3 million; and EPS of $0.20 per diluted share. Our updated guidance provided on December 2, 2024 was for Non-GAAP EPS of $0.25 per diluted share.
    • Returned approximately $244.6 million to stockholders in the December quarter through dividends.
    • Quarterly dividend declared today for the March quarter of 45.5 cents per share, an increase of 1.1% from the year ago quarter.

    CHANDLER, Ariz., Feb. 06, 2025 (GLOBE NEWSWIRE) — (NASDAQ: MCHP) – Microchip Technology Incorporated, a leading provider of smart, connected, and secure embedded control solutions, today reported results for the three months ended December 31, 2024, as summarized in the table below.

      Three Months Ended December 31, 2024(1)
    Net sales $1,026.0      
      GAAP % Non-GAAP(2) %
    Gross profit $561.4 54.7% $568.8 55.4%
    Operating income $30.9 3.0% $210.7 20.5%
    Other expense $(77.0)   $(76.7)  
    Income tax provision $7.5   $26.7  
    Net (loss) income $(53.6) (5.2)% $107.3 10.5%
    Net (loss) income per diluted share $(0.10)   $0.20  

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

    Net sales for the third quarter of fiscal 2025 were $1.026 billion, down 41.9% from net sales of $1.766 billion in the prior year’s third fiscal quarter.

    GAAP net loss for the third quarter of fiscal 2025 was $53.6 million, or $0.10 per diluted share, down from GAAP net income of $419.2 million, or $0.77 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, GAAP results were adversely impacted by amortization of acquired intangible assets associated with our previous acquisitions.

    Non-GAAP net income for the third quarter of fiscal 2025 was $107.3 million, or $0.20 per diluted share, down from non-GAAP net income of $592.7 million, or $1.08 per diluted share, in the prior year’s third fiscal quarter. For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP results exclude the effect of share-based compensation, expenses related to our acquisition activities (including intangible asset amortization, severance, and other restructuring costs, and legal and other general and administrative expenses associated with acquisitions including legal fees and expenses for litigation and investigations related to our Microsemi acquisition), professional services associated with certain legal matters, and losses on the settlement of debt. For the third quarters of fiscal 2025 and fiscal 2024, our non-GAAP income tax expense is presented based on projected cash taxes for the applicable fiscal year, excluding transition tax payments under the Tax Cuts and Jobs Act. A reconciliation of our non-GAAP and GAAP results is included in this press release.

    Microchip announced today that its Board of Directors declared a quarterly cash dividend on its common stock of 45.5 cents per share, up 1.1% from the year ago quarter. The quarterly dividend is payable on March 7, 2025 to stockholders of record on February 24, 2025.

    “Our December quarter performance reflects the need for the decisive steps we are taking to realign our business, as revenue declined to $1.026 billion and inventory levels reached 266 days,” said Steve Sanghi, Microchip’s CEO and President. “Since returning as CEO in November, we have already initiated several key actions, including restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement. Our initial assessment indicates clear areas for operational enhancement, and we are taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position.”

    Eric Bjornholt, Microchip’s Chief Financial Officer, said, “We are executing on multiple operational initiatives to enhance our financial performance. Our focus remains on returning to premium profitability levels that have historically differentiated Microchip, supported by our diversified business model. While navigating the current cycle, we continue to focus on inventory management while maintaining our commitment to shareholder returns.”

    Rich Simoncic, Microchip’s Chief Operating Officer, said, “Our comprehensive technology platform is driving innovation across critical markets, with our new RISC-V processors and expanded connectivity solutions demonstrating strong momentum in industrial, automotive, and aerospace applications. By delivering advanced AI capabilities, enhanced networking, and robust security technologies, we believe we are well-positioned to meet the evolving needs of our customers in increasingly complex technological environments.”

    Mr. Sanghi concluded, “While we have seen substantial inventory destocking at our customers and channel partners, we believe the correction cycle is still not completed. Our March quarter bookings are running at a higher rate than December, though overall levels remain low. With net sales guidance of $920.0 million to $1.000 billion for our March quarter, we maintain a cautious but focused approach and look forward to providing a comprehensive update during our business update call on March 3, 2025.”

    Fourth Quarter Fiscal Year 2025 Outlook:

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

      Microchip Consolidated Guidance
    Net Sales $920.0 million to $1.000 billion    
      GAAP(5) Non-GAAP Adjustments(1) Non-GAAP(1)
    Gross Profit 51.2% to 53.1% $7.8 to $8.8 million 52.0% to 54.0%
    Operating Expenses(2) 56.1% to 60.0% $179.7 to $183.7 million 37.7% to 40.5%
    Operating Income (loss) (8.9)% to (2.9)% $187.5 to $192.5 million 11.5% to 16.3%
    Other Expense, net $69.7 to $71.3 million $(0.2) to $0.2 million $69.5 to $71.5 million
    Income Tax (Benefit) Provision $(24.5) to $(19.8) million(3) $29.5 to $33.4 million $5.0 to $13.6 million(4)
    Net Income (loss) $(128.5) to $(79.4) million $157.8 to $159.3 million $29.3 to $79.9 million
    Diluted Common Shares Outstanding Approximately 538.4 million shares   Approximately 541.5 to 542.5 million shares
    Earnings (loss) per Diluted Share $(0.24) to $(0.14) $0.29 $0.05 to $0.15

    (1) See the “Use of Non-GAAP Financial Measures” section of this release for information regarding our non-GAAP guidance.
    (2) We are not able to estimate the amount of certain Special Charges and Other, net that may be incurred during the quarter ending March 31, 2025. Therefore, our estimate of GAAP operating expenses excludes certain amounts that may be recognized as Special Charges and Other, net in the quarter ending March 31, 2025.
    (3) The forecast for GAAP tax expense excludes any unexpected tax events that may occur during the quarter, as these amounts cannot be forecasted.
    (4) Represents the expected cash tax rate for fiscal 2025, excluding any transition tax payments associated with the Tax Cuts and Jobs Act.
    (5) Our GAAP guidance excludes the impact of any potential charges related to our ongoing evaluation of restructuring activities.

    Capital expenditures for the quarter ending March 31, 2025 are expected to be about $23 million. Capital expenditures for all of fiscal 2025 are expected to be about $135 million. Consistent with the slowing macroeconomic environment in fiscal 2025, we have paused most of our factory expansion actions and reduced our planned capital investments through fiscal 2026. However, we are adding capital equipment to selectively expand our production capacity and add research and development equipment.

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

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

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

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

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

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

    Diluted Common Shares Outstanding can vary for, among other things, the trading price of our common stock, the exercise of options or vesting of restricted stock units, the potential for incremental dilutive shares from our convertible debentures (additional information regarding our share count is available in the investor relations section of our website under the heading “Supplemental Information”), and repurchases or issuances of shares of our common stock. The diluted common shares outstanding presented in the guidance table above assumes an average Microchip stock price in the March 2025 quarter between $55 and $65 per share (however, we make no prediction as to what our actual share price will be for such period or any other period and we cannot estimate what our stock option exercise activity will be during the quarter).

     
    MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (in millions, except per share amounts; unaudited)
     
      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Net sales $ 1,026.0     $ 1,765.7     $ 3,431.1     $ 6,308.6  
    Cost of sales   464.6       645.7       1,464.3       2,102.8  
    Gross profit   561.4       1,120.0       1,966.8       4,205.8  
                   
    Research and development   246.2       266.0       728.6       857.1  
    Selling, general and administrative   158.2       172.2       465.7       572.4  
    Amortization of acquired intangible assets   122.6       151.3       368.3       454.2  
    Special charges and other, net   3.5       1.1       7.6       4.6  
    Operating expenses   530.5       590.6       1,570.2       1,888.3  
                   
    Operating income   30.9       529.4       396.6       2,317.5  
                   
    Other expense, net   (77.0 )     (45.1 )     (189.4 )     (151.3 )
    (Loss) income before income taxes   (46.1 )     484.3       207.2       2,166.2  
    Income tax provision   7.5       65.1       53.1       414.0  
    Net (loss) income $ (53.6 )   $ 419.2     $ 154.1     $ 1,752.2  
                   
    Basic net (loss) income per common share $ (0.10 )   $ 0.78     $ 0.29     $ 3.23  
    Diluted net (loss) income per common share $ (0.10 )   $ 0.77     $ 0.28     $ 3.19  
                   
    Basic common shares outstanding   537.4       540.8       536.9       543.0  
    Diluted common shares outstanding   537.4       546.5       542.1       549.0  
     
    MICROCHIP TECHNOLOGY INCORPORATED AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in millions; unaudited)
     
    ASSETS
      December 31,   March 31,
        2024       2024  
    Cash and short-term investments $ 586.0     $ 319.7  
    Accounts receivable, net   857.2       1,143.7  
    Inventories   1,356.3       1,316.0  
    Other current assets   196.3       233.6  
    Total current assets   2,995.8       3,013.0  
           
    Property, plant and equipment, net   1,152.1       1,194.6  
    Other assets   11,484.3       11,665.6  
    Total assets $ 15,632.2     $ 15,873.2  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY
           
    Accounts payable and accrued liabilities $ 1,330.3     $ 1,520.0  
    Current portion of long-term debt   —       999.4  
    Total current liabilities   1,330.3       2,519.4  
           
    Long-term debt   6,749.5       5,000.4  
    Long-term income tax payable   598.7       649.2  
    Long-term deferred tax liability   22.9       28.8  
    Other long-term liabilities   899.3       1,017.6  
           
    Stockholders’ equity   6,031.5       6,657.8  
    Total liabilities and stockholders’ equity $ 15,632.2     $ 15,873.2  


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

    RECONCILIATION OF GAAP GROSS PROFIT TO NON-GAAP GROSS PROFIT

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Gross profit, as reported $ 561.4     $ 1,120.0     $ 1,966.8     $ 4,205.8  
    Share-based compensation expense   7.4       6.0       18.3       20.2  
    Cybersecurity incident expenses   —       —       20.1       —  
    Non-GAAP gross profit $ 568.8     $ 1,126.0     $ 2,005.2     $ 4,226.0  
    GAAP gross profit percentage   54.7 %     63.4 %     57.3 %     66.7 %
    Non-GAAP gross profit percentage   55.4 %     63.8 %     58.4 %     67.0 %

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

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Research and development expenses, as reported $ 246.2     $ 266.0     $ 728.6     $ 857.1  
    Share-based compensation expense   (28.8 )     (24.4 )     (79.0 )     (71.0 )
    Other adjustments   —       (0.1 )     —       (0.5 )
    Non-GAAP research and development expenses $ 217.4     $ 241.5     $ 649.6     $ 785.6  
    GAAP research and development expenses as a percentage of net sales   24.0 %     15.1 %     21.2 %     13.6 %
    Non-GAAP research and development expenses as a percentage of net sales   21.2 %     13.7 %     18.9 %     12.5 %

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

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Selling, general and administrative expenses, as reported $ 158.2     $ 172.2     $ 465.7     $ 572.4  
    Share-based compensation expense   (13.2 )     (14.4 )     (42.4 )     (43.5 )
    Cybersecurity incident expenses   —       —       (1.3 )     —  
    Other adjustments   (3.9 )     (1.0 )     (7.3 )     (0.5 )
    Professional services associated with certain legal matters   (0.4 )     (0.4 )     (1.1 )     (1.2 )
    Non-GAAP selling, general and administrative expenses $ 140.7     $ 156.4     $ 413.6     $ 527.2  
    GAAP selling, general and administrative expenses as a percentage of net sales   15.4 %     9.8 %     13.6 %     9.1 %
    Non-GAAP selling, general and administrative expenses as a percentage of net sales   13.7 %     8.9 %     12.1 %     8.4 %

    RECONCILIATION OF GAAP OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Operating expenses, as reported $ 530.5     $ 590.6     $ 1,570.2     $ 1,888.3  
    Share-based compensation expense   (42.0 )     (38.8 )     (121.4 )     (114.5 )
    Cybersecurity incident expenses   —       —       (1.3 )     —  
    Other adjustments   (3.9 )     (1.1 )     (7.3 )     (1.0 )
    Professional services associated with certain legal matters   (0.4 )     (0.4 )     (1.1 )     (1.2 )
    Amortization of acquired intangible assets (1)   (122.6 )     (151.3 )     (368.3 )     (454.2 )
    Special charges and other, net   (3.5 )     (1.1 )     (7.6 )     (4.6 )
    Non-GAAP operating expenses $ 358.1     $ 397.9     $ 1,063.2     $ 1,312.8  
    GAAP operating expenses as a percentage of net sales   51.7 %     33.4 %     45.8 %     29.9 %
    Non-GAAP operating expenses as a percentage of net sales   34.9 %     22.5 %     31.0 %     20.8 %

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

    RECONCILIATION OF GAAP OPERATING INCOME TO NON-GAAP OPERATING INCOME

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Operating income, as reported $ 30.9     $ 529.4     $ 396.6     $ 2,317.5  
    Share-based compensation expense   49.4       44.8       139.7       134.7  
    Cybersecurity incident expenses   —       —       21.4       —  
    Other adjustments   3.9       1.1       7.3       1.0  
    Professional services associated with certain legal matters   0.4       0.4       1.1       1.2  
    Amortization of acquired intangible assets (1)   122.6       151.3       368.3       454.2  
    Special charges and other, net   3.5       1.1       7.6       4.6  
    Non-GAAP operating income $ 210.7     $ 728.1     $ 942.0     $ 2,913.2  
    GAAP operating income as a percentage of net sales   3.0 %     30.0 %     11.6 %     36.7 %
    Non-GAAP operating income as a percentage of net sales   20.5 %     41.2 %     27.5 %     46.2 %

    (1) Amortization of acquired intangible assets consists of core and developed technology and customer-related acquired intangible assets in connection with business combinations. Such charges are excluded for purposes of calculating certain non-GAAP measures. The use of acquired intangible assets contributed to our revenues earned during the periods presented.

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

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Other expense, net, as reported $ (77.0 )   $ (45.1 )   $ (189.4 )   $ (151.3 )
    Loss on settlement of debt   0.3       —       0.3       12.2  
    Loss on available-for-sale investments   —       —       1.8       —  
    Non-GAAP other expense, net $ (76.7 )   $ (45.1 )   $ (187.3 )   $ (139.1 )
    GAAP other expense, net, as a percentage of net sales (7.5 )%   (2.6 )%   (5.5 )%   (2.4 )%
    Non-GAAP other expense, net, as a percentage of net sales (7.5 )%   (2.6 )%   (5.5 )%   (2.2 )%

    RECONCILIATION OF GAAP INCOME TAX PROVISION TO NON-GAAP INCOME TAX PROVISION

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Income tax provision as reported $ 7.5     $ 65.1     $ 53.1     $ 414.0  
    Income tax rate, as reported (16.3 )%     13.4 %     25.6 %     19.1 %
    Other non-GAAP tax adjustment   19.2       25.2       54.2       (27.2 )
    Non-GAAP income tax provision $ 26.7     $ 90.3     $ 107.3     $ 386.8  
    Non-GAAP income tax rate   19.9 %     13.2 %     14.2 %     13.9 %

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

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    Net (loss) income, as reported $ (53.6 )   $ 419.2     $ 154.1     $ 1,752.2  
    Share-based compensation expense   49.4       44.8       139.7       134.7  
    Cybersecurity incident expenses   —       —       21.4       —  
    Other adjustments   3.9       1.1       7.3       1.0  
    Professional services associated with certain legal matters   0.4       0.4       1.1       1.2  
    Amortization of acquired intangible assets   122.6       151.3       368.3       454.2  
    Special charges and other, net   3.5       1.1       7.6       4.6  
    Loss on settlement of debt   0.3       —       0.3       12.2  
    Loss on available-for-sale investments   —       —       1.8       —  
    Other non-GAAP tax adjustment   (19.2 )     (25.2 )     (54.2 )     27.2  
    Non-GAAP net income $ 107.3     $ 592.7     $ 647.4     $ 2,387.3  
    GAAP net (loss) income as a percentage of net sales (5.2 )%     23.7 %     4.5 %     27.8 %
    Non-GAAP net income as a percentage of net sales   10.5 %     33.6 %     18.9 %     37.8 %
    Diluted net (loss) income per common share, as reported $ (0.10 )   $ 0.77     $ 0.28     $ 3.19  
    Non-GAAP diluted net income per common share $ 0.20     $ 1.08     $ 1.19     $ 4.35  
    Diluted common shares outstanding, as reported   537.4       546.5       542.1       549.0  
    Diluted common shares outstanding non-GAAP   541.6       546.5       542.1       549.0  

    RECONCILIATION OF GAAP CASH FLOW FROM OPERATIONS TO FREE CASH FLOW

      Three Months Ended December 31,   Nine Months Ended December 31,
        2024       2023       2024       2023  
    GAAP cash flow from operations, as reported $ 271.5     $ 853.3     $ 692.2     $ 2,462.7  
    Capital expenditures   (18.1 )     (59.5 )     (111.8 )     (245.0 )
    Free cash flow $ 253.4     $ 793.8     $ 580.4     $ 2,217.7  
    GAAP cash flow from operations as a percentage of net sales   26.5 %     48.3 %     20.2 %     39.0 %
    Free cash flow as a percentage of net sales   24.7 %     45.0 %     16.9 %     35.2 %

    Microchip will host a conference call today, February 6, 2025 at 5:00 p.m. (Eastern Time) to discuss this release. This call will be simulcast over the Internet at www.microchip.com. The webcast will be available for replay until February 27, 2025.

    A telephonic replay of the conference call will be available at approximately 8:00 p.m. (Eastern Time) on February 6, 2025 and will remain available until 5:00 p.m. (Eastern Time) on February 27, 2025. Interested parties may listen to the replay by dialing 201-612-7415/877-660-6853 and entering access code 13750989.

    Cautionary Statement:
    The statements in this release relating to the decisive steps we are taking to realign our business, restructuring our manufacturing footprint, adjusting our channel strategy and intensifying our customer engagement, clear areas for operational enhancements, taking a methodical yet urgent approach to evaluating all aspects of our business and implementing necessary changes to strengthen our competitive position, executing on multiple operational initiatives to enhance our financial performance, that our focus remains on returning to premium profitability levels that have historically differentiated Microchip, supported by our diversified business model, that we continue to focus on inventory management while maintaining our commitment to shareholder returns, that our comprehensive technology platform is driving innovation across critical markets, with our new RISC-V processors and expanded connectivity solutions demonstrating strong momentum in industrial, automotive, and aerospace applications, that we believe we are well-positioned to meet the evolving needs of our customers in increasingly complex technological environments, that we believe the correction cycle is still not completed, our net sales guidance of $920.0 million to $1.000 billion for our March 2025 quarter, that we maintain a cautious but focused approach, our fourth quarter fiscal 2025 guidance for net sales and GAAP and non-GAAP gross profit, operating expenses, operating income (loss), other expense, net, income tax (benefit) provision, net income (loss), diluted common shares outstanding, earnings (loss) per diluted share, capital expenditures for the March 2025 quarter and for all of fiscal 2025, adding capital equipment to selectively expand our production capacity and add research and development equipment, our belief that non-GAAP measures are useful to investors and our assumed average stock price in the March 2025 quarter are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause our actual results to differ materially, including, but not limited to: any continued uncertainty, fluctuations or weakness in the U.S. and world economies (including China and Europe) due to changes in interest rates or high inflation, actions taken or which may be taken by the Trump administration or the new U.S. Congress, monetary policy, political, geopolitical, trade or other issues in the U.S. or internationally (including the military conflicts in Ukraine-Russia and the Middle East), further changes in demand or market acceptance of our products and the products of our customers and our ability to respond to any increases or decreases in market demand or customer

    requests to reschedule or cancel orders; the mix of inventory we hold, our ability to satisfy any short-term orders from our inventory and our ability to effectively manage our inventory levels; foreign currency effects on our business; changes in utilization of our manufacturing capacity and our ability to effectively manage our production levels to meet any increases or decreases in market demand or any customer requests to reschedule or cancel orders; the impact of inflation on our business; competitive developments including pricing pressures; the level of orders that are received and can be shipped in a quarter; our ability to realize the expected benefits of our long-term supply assurance program; changes or fluctuations in customer order patterns and seasonality; our ability to effectively manage our supply of wafers from third party wafer foundries to meet any decreases or increases in our needs and the cost of such wafers, our ability to obtain additional capacity from our suppliers to increase production to meet any future increases in market demand; our ability to successfully integrate the operations and employees, retain key employees and customers and otherwise realize the expected synergies and benefits of our acquisitions; the impact of any future significant acquisitions or strategic transactions we may make; the costs and outcome of any current or future litigation or other matters involving our acquisitions (including the acquired business, intellectual property, customers, or other issues); the costs and outcome of any current or future tax audit or investigation regarding our business or our acquired businesses; the impact that the CHIPS Act will have on increasing manufacturing capacity in our industry by providing incentives for us, our competitors and foundries to build new wafer manufacturing facilities or expand existing facilities; the amount and timing of any incentives we may receive under the CHIPS Act, the impact of current and future changes in U.S. corporate tax laws (including the Inflation Reduction Act of 2022 and the Tax Cuts and Jobs Act of 2017); fluctuations in our stock price and trading volume which could impact the number of shares we acquire under our share repurchase program and the timing of such repurchases; disruptions in our business or the businesses of our customers or suppliers due to natural disasters (including any floods in Thailand), terrorist activity, armed conflict, war, worldwide oil prices and supply, public health concerns or disruptions in the transportation system; and general economic, industry or political conditions in the United States or internationally.

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

    Stockholders of Microchip are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. Microchip does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances or new information after this February 6, 2025 press release, or to reflect the occurrence of unanticipated events.

    About Microchip:

    Microchip Technology Incorporated is a leading provider of smart, connected and secure embedded control solutions. Its easy-to-use development tools and comprehensive product portfolio enable customers to create optimal designs, which reduce risk while lowering total system cost and time to market. Our solutions serve approximately 112,000 customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. Headquartered in Chandler, Arizona, Microchip offers outstanding technical support along with dependable delivery and quality. For more information, visit the Microchip website at www.microchip.com.

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

    INVESTOR RELATIONS CONTACT:

    Sajid Daudi — Head of investor Relations….. (480) 792-7385

    The MIL Network –

  • MIL-OSI: Former U.S. Senator Joe Manchin to Serve as Adviser to Apollo and Appointed to Athene Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    WEST DES MOINES, Iowa, Feb. 06, 2025 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) and Athene Holding Ltd. (“Athene”), today announced that former U.S. Senator Joseph Manchin III has been named an adviser to Apollo and appointed to the Athene Board of Directors, effective February 3, 2025. Senator Manchin will provide advisory services to Apollo on various matters including energy markets, given the firm’s leading role in providing capital to enable the global industrial renaissance.

    Senator Manchin served as a United States Senator for West Virginia from 2010 to 2025. He was Chair of the Senate Energy and Natural Resources Committee, as well as a member of the Appropriations, Armed Services, and Veterans’ Affairs Committees. Prior to his tenure in the Senate, he served as the 34th Governor of West Virginia from 2005 to 2010 and as West Virginia Secretary of State from 2001 to 2005. He graduated from West Virginia University with a degree in business administration.

    Marc Rowan, CEO of Apollo, said, “Senator Manchin’s distinguished career experience and expertise will be incredibly valuable to Apollo and our clients and partners. We look forward to his contributions to help meet the unprecedented capital need required to drive the global industrial renaissance and support the significant retirement needs of Americans and families around the globe.”

    Jim Belardi, CEO of Athene, said, “Senator Manchin is a great addition to Athene’s Board as we address the significant need for next generation retirement products. His public sector experience, expertise on a broad range of issues, and track record of independent thinking make him a valuable member of our Board.”

    Senator Manchin said, “Apollo is a forward-thinking financial services firm that has been able to offer capital at scale to drive the American economy forward. Athene provides critical retirement services to millions of Americans and is the leading innovator in tackling modern retirement challenges. I look forward to bringing a unique perspective to both the team at Apollo and the Athene Board, contributing to the firm’s continued success in retirement services and providing capital to enable energy accretion and transition.”

    About Athene
    Athene is a leading retirement services company with over $350 billion of total assets as of September 30, 2024, and operations in the United States, Bermuda, Canada, and Japan. Athene is focused on providing financial security to individuals by offering an attractive suite of retirement income and savings products and also serves as a solutions provider to corporations. For more information, please visit www.athene.com.

    About Apollo
    Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2024, Apollo had approximately $751 billion of assets under management. To learn more, please visit www.apollo.com.

    Contacts:

    Joanna Rose
    Global Head of Corporate Communications
    Apollo Global Management, Inc.
    212-822-0491
    communications@apollo.com

    Jeanne Hess
    Vice President, External Relations
    Athene
    646-768-7319
    jeanne.hess@athene.com

    The MIL Network –

  • MIL-OSI: Greystone Housing Impact Investors LP Schedules Fourth Quarter 2024 Earnings Conference Call for Thursday, February 20, 2025 at 4:30 p.m. Eastern Time

    Source: GlobeNewswire (MIL-OSI)

    OMAHA, Neb., Feb. 06, 2025 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that it will host a conference call for investors on Thursday, February 20, 2025 at 4:30 p.m. Eastern Time to discuss the Partnership’s Fourth Quarter 2024 results.

    For those interested in participating in the question-and-answer session, participants may dial-in toll free at (877) 407-8813. International participants may dial-in at +1 (201) 689-8521. No pin or code number is needed.

    The call is also being webcast live in listen-only mode. The webcast can be accessed via the Partnership’s website under “Events & Presentations” or via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=T0wdPGmd

    It is recommended that you join 15 minutes before the conference call begins (although you may register, dial-in or access the webcast at any time during the call).

    A recorded replay of the webcast will be made available on the Partnership’s Investor Relations website at http://www.ghiinvestors.com.

    About Greystone Housing Impact Investors LP

    Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.

    Safe Harbor Statement

    Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

    CONTACT:
    Ken Rogozinski
    Chief Executive Officer
    402-952-1235 

    The MIL Network –

  • MIL-OSI USA: VIDEO: On Senate Floor, Rosen Opposes Confirmation of Project 2025 Co-Author Russell Vought as Director of the Office of Management and Budget

    US Senate News:

    Source: United States Senator Jacky Rosen (D-NV)

    Senator Rosen: “Nevadans are hurting, and they are looking to Congress for help. If Vought is given the power to shape our federal budget, we risk seeing critical programs slashed, leaving our seniors, working people, families facing higher costs, fewer services, and with less financial security.”

    Watch Senator Rosen’s Full Remarks HERE.
    WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) took the Senate floor to oppose the confirmation of one of the key authors of Project 2025, Russell Vought, to lead the Office of Management and Budget. In her speech, Senator Rosen highlighted Mr. Vought’s extreme far-right views and plans that would harm hard-working families, including putting programs like Medicare and Social Security on the chopping block, and giving tax breaks to billionaires and big corporations on the backs of seniors and working families.
    Below are excerpts of Senator Rosen’s floor remarks:
    Mr. President,
    Nevadans sent me to the Senate to stand up and fight for hardworking families throughout our state.
    And that’s exactly why I’m here today – to sound the alarm about Russell Vought’s nomination to lead the Trump Administration’s Office of Management and Budget. They oversee virtually every agency and the entire federal budget.
    Mr. Vought would be a disaster if he’s put in this role again. 
    Russell Vought vote is an extremist who will betray working families, betray your family – and there’s simply no other way to put it.
    After all, he was the main architect behind [the] Project 2025 agenda.
    You might have heard of it, but for those who don’t know, Project 2025 is Russell Vought’s far-right playbook for seizing full control of the federal government. I’m going to repeat that: this is he wrote the playbook to seize full control over the federal government. Our government. Your government.
    It’s filled with extreme ideas that would hurt families like yours. Ideas like putting essential government programs like Medicare, Medicaid, Social Security on the chopping block. And it’s going to give handouts to billionaires and big corporations on the backs of America’s middle class. On your backs.
    Seeing how much power this Administration has already given to unelected, unelected billionaire CEOs, it’s not hard to imagine what’s coming next.
    […]
    I urge my colleagues who are considering a vote for this nomination to think about what working people in this country are going through at this moment.
    I urge my colleagues to think about the Moms and the Dads who come home from a hard day at work. They have dinner with their family, they put their kids to bed, and then, instead of relaxing in front of the TV, they sit at the kitchen table, and they worry. And they’re worried sick about how they’re going to pay the bills, how they’re going to keep a roof over their head, how they’re going to keep putting food on the table.
    They’re going back and forth, trying to figure out what essentials they can live without just to make ends meet.
    At the same time, the billionaires that Russell Vought is looking out for, well, they don’t understand the struggle, I can bet you that. I’m going to say here: let’s ask those billionaires last time they went grocery shopping and worried about the price of eggs or milk. I bet they don’t have an answer for that. That’s who Mr. Vought fights for. And these struggles that real families are going through, they’re tough choices that far, far too many working families face every single day.
    And these are the people who will be hurt most by Russell Vought’s extreme, extreme agenda.
    And we know that, right now, these same families are feeling the squeeze of rising costs – it’s everywhere, the grocery store to the gas pump. 
    And with the added price spikes from President Trump’s reckless tariff threats, it’s going to get even harder to afford food, pay off an energy bill, or make rent – let alone, let alone buy a home.
    And so, it’s no wonder people are so frustrated with the way things are –  it shouldn’t have to be this way.
    We should be looking for opportunities to help make their lives better – to make things a little easier.
    At a time when Americans are already paying an arm and a leg for essentials – when they desperately need the support of critical government programs that make such a meaningful difference, why on earth would we confirm someone who will just make their lives harder? Why on earth would we do this?
    So, make no mistake: if Russell Vought is allowed to head up the OMB, he, Vought will work to make sure the ultra-wealthy get more, while struggling families get even less than they have now. This is who Russel Vought is, and this is what he’ll do – what he’ll do to you.
    Mr. President, Nevadans are hurting, and they are looking to Congress for help. 
    If Vought is given the power to shape our federal budget, we risk seeing critical programs slashed, leaving our seniors, working people, families facing higher costs, fewer services, and with less financial security. 
    And this isn’t just an ideological difference; it’s a real threat to millions of people’s well-being. To the very core of what’s most important to them: their families.
    And the stakes couldn’t be higher. And so, I urge my colleagues in the Senate to reject this reckless nomination for the sake of all of our families.

    MIL OSI USA News –