Core Points - Pangaea Logistics Solutions will release its third quarter 2025 financial results on November 6, 2025, after market close [1] - A conference call to discuss the results will take place on November 7, 2025, at 8:00 a.m. ET [1][2] - The company provides logistics services for various dry bulk cargoes, including grains, pig iron, and cement clinker [3] Company Overview - Pangaea Logistics Solutions Ltd. is a global provider of maritime logistics solutions, focusing on the transportation of dry bulk cargoes [3] - The company offers a comprehensive range of services, including cargo loading, discharge, vessel chartering, and voyage planning [3]

Core Viewpoint - Pangaea Logistics Solutions Ltd. announces the retirement of CEO Mark Filanowski and the appointment of Mads Petersen as the new CEO effective January 1, 2026, following a successful eleven-year tenure by Filanowski [1][3]. Company Leadership Transition - Mark Filanowski will retire as CEO and step down from the Board of Directors on January 1, 2026, after eleven years with Pangaea [1]. - Mads Petersen, currently the Chief Operating Officer, will succeed Filanowski as President and CEO and will also join the Board of Directors on the same date [1][2]. Mads Petersen's Background - Mads Petersen has been with Pangaea for 16 years and has over 20 years of experience in the dry bulk shipping industry [2]. - He joined Pangaea in 2009 and has played a key role in the company's growth, particularly in ice-class vessel activities and overseeing newbuilding activities in Japan and China [2]. Achievements Under Filanowski - Under Filanowski's leadership, Pangaea's owned vessel fleet has tripled, and the company has expanded its port and logistics operations to 10 marine terminals across the U.S. Gulf Coast and Mid-Atlantic regions [3]. - Filanowski has been credited with navigating a dynamic global shipping environment and sustaining Pangaea's growth following the passing of its founder, Ed Coll [3]. Future Outlook - Petersen expressed his commitment to building on Pangaea's proven business model and delivering innovative, customer-focused maritime solutions to drive long-term value for shareholders [3]. - The Board of Directors believes Petersen's deep industry expertise and operational insight position him well to lead the company into its next phase of growth [3].

Core Insights - The article emphasizes the importance of strong brand recognition, solid financials, and growth potential in identifying profitable investment opportunities within the consumer products sector [1] Group 1: Investment Focus - The company specializes in the consumer products sector, aiming to identify firms that combine strong brand recognition with solid financial performance [1] - There is a keen focus on consumer trends, which aids in recognizing potential investment opportunities [1] Group 2: Financial Performance - The analysis highlights the significance of solid financials as a criterion for investment selection [1] - Companies with strong financial metrics are more likely to present growth potential, making them attractive for investment [1]

PART I FINANCIAL INFORMATION This section presents the unaudited consolidated financial statements, management's discussion, market risks, and controls and procedures [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of Pangaea Logistics Solutions Ltd. for the periods ended June 30, 2025, and December 31, 2024, highlighting key financial changes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This section presents the consolidated balance sheets, highlighting changes in cash, assets, liabilities, and equity between June 30, 2025, and December 31, 2024 Consolidated Balance Sheet Highlights (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | Cash and cash equivalents | $59,252,910 | $86,805,470 | $(27,552,560) | -31.74% | | Total current assets | $184,008,795 | $191,993,893 | $(7,985,098) | -4.16% | | Total assets | $915,995,446 | $936,457,081 | $(20,461,635) | -2.18% | | Total current liabilities | $126,009,715 | $109,108,111 | $16,901,604 | 15.49% | | Total stockholders' equity | $459,130,313 | $474,664,335 | $(15,534,022) | -3.27% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the consolidated statements of operations, showing revenue, expenses, and net income/loss for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :------------------------------------------ | :----------- | :----------- | :------- | :------- | | Total revenue | $156,689,442 | $131,497,852 | $25,191,590 | 19.16% | | Total expenses | $153,035,850 | $123,883,626 | $29,152,224 | 23.53% | | Income from operations | $3,653,592 | $7,614,226 | $(3,960,634) | -52.02% | | Net (loss) income attributable to Pangaea Logistics Solutions Ltd. | $(2,742,116) | $3,682,775 | $(6,424,891) | -174.45% | | Basic (loss) earnings per common share | $(0.04) | $0.08 | $(0.12) | -150.00% | | Diluted (loss) earnings per common share | $(0.04) | $0.08 | $(0.12) | -150.00% | Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :------------------------------------------ | :----------- | :----------- | :------- | :------- | | Total revenue | $279,491,328 | $236,246,405 | $43,244,923 | 18.31% | | Total expenses | $272,911,290 | $217,604,060 | $55,307,230 | 25.42% | | Income from operations | $6,580,038 | $18,642,345 | $(12,062,307) | -64.70% | | Net (loss) income attributable to Pangaea Logistics Solutions Ltd. | $(4,722,993) | $15,356,951 | $(20,079,944) | -130.75% | | Basic (loss) earnings per common share | $(0.07) | $0.34 | $(0.41) | -120.59% | | Diluted (loss) earnings per common share | $(0.07) | $0.33 | $(0.40) | -121.21% | [Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) This section outlines changes in stockholders' equity, including share-based compensation, distributions, repurchases, dividends, and net loss for the six months ended June 30, 2025 Stockholders' Equity Changes (Six Months Ended June 30, 2025) | Item | Amount | | :------------------------------------------ | :------------- | | Balance at December 31, 2024 | $474,664,335 | | Share-based compensation | $2,080,781 | | Distribution to Non-Controlling Interests | $(1,941,667) | | Share repurchases | $(1,007,102) | | Common Stock Dividend | $(9,845,199) | | Net Loss | $(5,098,740) | | Balance at June 30, 2025 | $459,130,313 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Activity | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----------- | :----------- | :------- | :------- | | Net cash provided by operating activities | $10,039,158 | $17,955,519 | $(7,916,361) | -44.09% | | Net cash used in investing activities | $(2,411,298) | $(9,139,000) | $6,727,702 | -73.61% | | Net cash used in financing activities | $(35,180,420) | $(29,907,430) | $(5,272,990) | 17.63% | | Net change in cash and cash equivalents | $(27,552,560) | $(21,090,911) | $(6,461,649) | 30.64% | | Cash and cash equivalents, end of period | $59,252,910 | $77,946,955 | $(18,694,045) | -24.00% | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes supporting the consolidated financial statements, covering general information, accounting policies, and specific financial accounts [Note 1 - General Information and Recent Events](index=8&type=section&id=Note%201%20-%20General%20Information%20and%20Recent%20Events) This note provides an overview of Pangaea Logistics Solutions Ltd.'s business, fleet composition, and recent corporate actions - Pangaea Logistics Solutions Ltd. is a Bermuda-incorporated holding company engaged in worldwide drybulk cargo ocean transportation through vessel ownership, chartering, and operation[18](index=18&type=chunk) - As of June 30, 2025, the Company owned **41 drybulk vessels**, including three Panamax, two Ultramax Ice Class 1C, two Ultramax, nine Supramax, four Post-Panamax Ice Class 1A, and fifteen Handysize vessels (acquired via merger with Strategic Shipping Inc. on December 30, 2024)[19](index=19&type=chunk)[20](index=20&type=chunk) - On July 31, 2025, the Company acquired the remaining **49% equity interest** in Seamar Management for **$2.7 million**, making it a wholly-owned subsidiary[20](index=20&type=chunk) [Note 2 - Basis of Presentation and Significant Accounting Policies](index=9&type=section&id=Note%202%20-%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) This note describes the basis of financial statement presentation, significant accounting policies, key estimates, and recent accounting pronouncements - The unaudited consolidated financial statements are prepared in accordance with U.S. GAAP for interim financial information and Form 10-Q instructions, reflecting all normal recurring adjustments[22](index=22&type=chunk) - Significant estimates include voyage completion percentage, allowance for credit losses, vessel depreciation salvage value, and long-lived asset impairment evaluation[23](index=23&type=chunk) - One significant customer accounted for **31% of accounts receivable** as of June 30, 2025, indicating a concentration of credit risk[24](index=24&type=chunk) Advance Hire, Prepaid Expenses and Other Current Assets | Item | June 30, 2025 | December 31, 2024 | | :---------------------------------- | :------------ | :---------------- | | Advance hire | $1,758,980 | $3,348,104 | | Prepaid expenses | $7,109,756 | $9,517,482 | | Accrued receivables | $13,359,656 | $7,352,376 | | Cash margin on deposit | $1,752,935 | $3,268,455 | | Derivative assets | $1,023,259 | $2,047,196 | | Other current assets | $4,296,067 | $4,435,739 | | **Total** | **$29,300,653** | **$29,969,352** | - The Company adopted ASU 2023-09 (Income Taxes) in Q1 2025 with no material impact and is assessing ASU 2024-03 (Expense Disaggregation), ASU 2025-03 (Business Combinations), and ASU 2025-04 (Share-Based Payments) for future impact[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) [Note 3 - Cash and Cash Equivalents](index=13&type=section&id=Note%203%20-%20Cash%20and%20Cash%20Equivalents) This note details the composition and changes in cash and cash equivalents, highlighting a significant decrease from the prior year-end Cash and Cash Equivalents (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Money market accounts | $22,632,333 | $33,239,201 | | Time deposit accounts | — | $10,204,382 | | Cash | $36,620,577 | $43,361,887 | | **Total cash and cash equivalents** | **$59,252,910** | **$86,805,470** | - Cash and cash equivalents decreased by **31.74%** from **$86.8 million** at December 31, 2024, to **$59.3 million** at June 30, 2025[45](index=45&type=chunk) [Note 4 - Fixed Assets](index=14&type=section&id=Note%204%20-%20Fixed%20Assets) This note provides information on the Company's owned dry bulk vessels and barge, including carrying amounts and asset reclassifications - As of June 30, 2025, the Company owned **41 dry bulk vessels** and one barge, with a total net carrying amount of **$694.4 million**, down from **$707.8 million** at December 31, 2024[46](index=46&type=chunk)[47](index=47&type=chunk) - On June 12, 2025, the M/V Strategic Endeavor was reclassified as held for sale at **$7.7 million** and was delivered to the buyer on July 21, 2025[48](index=48&type=chunk)[93](index=93&type=chunk) - No triggering event for long-lived asset impairment testing occurred during the first half of 2025 or 2024[49](index=49&type=chunk)[141](index=141&type=chunk) [Note 5 - Debt](index=16&type=section&id=Note%205%20-%20Debt) This note details the Company's outstanding long-term debt and financing obligations, confirming compliance with financial covenants Outstanding Long-Term Debt (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Total secured long-term debt | $123,049,844 | $131,319,017 | | Less: unamortized issuance costs | $(1,681,148) | $(2,022,277) | | Less: current portion | $(16,656,227) | $(16,576,195) | | **Secured long-term debt, net** | **$104,712,469** | **$112,720,545** | - The Company was in compliance with all financial covenants, including minimum liquidity and collateral maintenance ratios, as of June 30, 2025, and December 31, 2024[53](index=53&type=chunk) Financing Obligations from Failed Sale Leaseback Transactions (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total financing obligations | $244,686,536 | $257,183,904 | | Less: unamortized issuance costs, net | $(2,137,159) | $(2,387,007) | | Less: current portion | $(25,438,710) | $(25,267,105) | | **Financing Obligations, net** | **$217,110,667** | **$229,529,792** | [Note 6 - Finance Leases](index=19&type=section&id=Note%206%20-%20Finance%20Leases) This note describes the Company's finance lease arrangements for vessels, including outstanding balances and interest rate cap details - The Company's fleet includes two vessels, Bulk Xaymaca and Bulk Destiny, financed through sale and leaseback arrangements accounted for as finance leases[58](index=58&type=chunk) Finance Leases (June 30, 2025 vs. December 31, 2024) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total finance leases | $11,947,395 | $13,369,270 | | Less: unamortized issuance costs, net | $(71,363) | $(91,222) | | Less: current portion | $(2,843,750) | $(2,843,750) | | **Long-term lease liabilities, net** | **$9,032,282** | **$10,434,298** | - An interest rate cap is effective from Q2 2026 through Q4 2026, capping SOFR at **3.51%** for certain finance leases[60](index=60&type=chunk) [Note 7 - Derivative Instruments and Fair Value Measurements](index=21&type=section&id=Note%207%20-%20Derivative%20Instruments%20and%20Fair%20Value%20Measurements) This note explains the Company's use of derivative instruments to manage market risks and their impact on financial results - The Company uses forward freight agreements (FFAs), fuel swap contracts, and interest rate caps to manage exposure to fluctuating freight rates, bunker prices, and interest rate movements[63](index=63&type=chunk)[64](index=64&type=chunk)[65](index=65&type=chunk) - These economic hedges generally do not qualify for hedge accounting, leading to potential fluctuations in reported operating results[63](index=63&type=chunk)[64](index=64&type=chunk) Effect of Derivative Financial Instruments on Consolidated Statements of Operations (Six Months Ended June 30) | Derivative Instrument | 2025 (Unrealized Loss) | 2024 (Unrealized Gain) | | :-------------------- | :--------------------- | :--------------------- | | Forward freight agreements | $(238,660) | $1,808,866 | | Fuel Swap Contracts | $(505,883) | $2,111,232 | | Interest rate cap | $(850,169) | $236,738 | | **Total (loss) gain** | **$(1,117,392)** | **$4,156,836** | [Note 8 - Related Party Transactions](index=23&type=section&id=Note%208%20-%20Related%20Party%20Transactions) This note discloses transactions with related parties, including technical management fees and intercompany eliminations - The Company incurred technical management fees of approximately **$562,500** for the three months ended June 30, 2025, and **$1,125,000** for the six months ended June 30, 2025, under an agreement with MTM Ship Management[74](index=74&type=chunk) - Upon consolidation of Seamar Management in Q2 2025, the intercompany payable balance was eliminated[72](index=72&type=chunk) [Note 9 - Commitments and Contingencies](index=23&type=section&id=Note%209%20-%20Commitments%20and%20Contingencies) This note outlines the Company's non-cancelable office leases and management's assessment of potential legal claims - The Company has non-cancelable office leases in Copenhagen (expires Dec 2025, then month-to-month with 6-month non-cancelable period) and Singapore (renewed for **15 months** in June 2025)[75](index=75&type=chunk)[76](index=76&type=chunk) - Lease expenses for office leases were approximately **$50,000** for the three months ended June 30, 2025, and **$100,000** for the six months ended June 30, 2025[76](index=76&type=chunk)[77](index=77&type=chunk) - Management believes that the financial impact of asserted claims arising in the ordinary course of business will not be material to the Company's consolidated financial position, results of operations, or cash flows[78](index=78&type=chunk) [Note 10 – Stockholders' Equity](index=24&type=section&id=Note%2010%20%E2%80%93%20Stockholders%27%20Equity) This note details changes in stockholders' equity, including share repurchase programs, dividends, and common stock outstanding - On May 8, 2025, the Board authorized a **$15.0 million** share repurchase program, representing approximately **5.6%** of market capitalization[79](index=79&type=chunk) - During the six months ended June 30, 2025, the Company repurchased and retired **202,882 shares** at an average price of **$4.96 per share**, totaling approximately **$1.01 million**[80](index=80&type=chunk) - As of June 30, 2025, approximately **$14.0 million** remained available under the repurchase program[81](index=81&type=chunk) - Total cash dividends paid were approximately **$9.9 million** for the six months ended June 30, 2025[82](index=82&type=chunk) Changes in Common Stock Outstanding (Six Months Ended June 30, 2025) | Description | Number of Shares | | :-------------------------------- | :--------------- | | Shares outstanding at December 31, 2024 | 64,961,433 | | Shares issued (e.g., equity grants) | 661,504 | | Share forfeitures | (42,918) | | Shares repurchased and retired | (202,882) | | **Shares outstanding at June 30, 2025** | **65,377,137** | [Note 11 - Net Income per Common Share](index=24&type=section&id=Note%2011%20-%20Net%20Income%20per%20Common%20Share) This note presents the basic and diluted net income per common share calculations for the reporting periods Basic and Diluted Net Income per Share (Three Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net (loss) income | $(2,742,116) | $3,682,775 | | Weighted Average Shares - Basic | 64,042,209 | 45,276,791 | | Weighted Average Shares - Diluted | 64,042,209 | 46,028,902 | | Basic net (loss) income per share | $(0.04) | $0.08 | | Diluted net (loss) income per share | $(0.04) | $0.08 | Basic and Diluted Net Income per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------ | :----- | :----- | | Net (loss) income | $(4,722,993) | $15,356,951 | | Weighted Average Shares - Basic | 63,988,996 | 45,245,655 | | Weighted Average Shares - Diluted | 63,988,996 | 45,922,272 | | Basic net (loss) income per share | $(0.07) | $0.34 | | Diluted net (loss) income per share | $(0.07) | $0.33 | - Restricted stock awards of approximately **380,000 shares** (three months) and **406,000 shares** (six months) were excluded from diluted EPS calculation for 2025 as their effect would have been anti-dilutive due to the net loss[85](index=85&type=chunk) [Note 12. Employee Benefit Plans](index=25&type=section&id=Note%2012.%20Employee%20Benefit%20Plans) This note describes the Company's 401(k) retirement savings plan and associated matching contributions expense - The Company sponsors a 401(k) retirement savings plan, providing a **100% match** on the first **4%** of eligible employee contributions, which vest immediately[87](index=87&type=chunk)[88](index=88&type=chunk) - Matching contributions expense was approximately **$55,000** for the three months ended June 30, 2025, and **$233,000** for the six months ended June 30, 2025[88](index=88&type=chunk) [Note 13 – Segment Information and Geographic Data](index=25&type=section&id=Note%2013%20%E2%80%93%20Segment%20Information%20and%20Geographic%20Data) This note provides information on the Company's single reportable shipping segment and revenue breakdown by geographic area - The Company operates a single reportable segment: shipping, focused on seaborne dry bulk logistics and transportation services globally[89](index=89&type=chunk) - The CEO, as CODM, assesses profitability and asset performance using Time Charter Equivalent (TCE) rates, with voyage expenses as the primary expense analyzed[90](index=90&type=chunk) Shipping Segment Total Revenue (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------- | :----------- | :----------- | :------- | :------- | | Shipping segment total revenue | $153,103,042 | $127,942,525 | $25,160,517 | 19.67% | | Total consolidated revenue | $156,689,442 | $131,497,852 | $25,191,590 | 19.16% | Shipping Segment Total Revenue (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------- | :----------- | :----------- | :------- | :------- | | Shipping segment total revenue | $272,688,080 | $230,161,097 | $42,526,983 | 18.48% | | Total consolidated revenue | $279,491,328 | $236,246,405 | $43,244,923 | 18.31% | Revenue by Geographic Area (Six Months Ended June 30) | Region | 2025 | 2024 | Change | % Change | | :------------- | :----------- | :----------- | :------- | :------- | | United States | $81,468,643 | $83,063,706 | $(1,595,063) | -1.92% | | Singapore | $30,998,149 | $17,597,973 | $13,400,176 | 76.15% | | Germany | $29,992,228 | $20,866,516 | $9,125,712 | 43.74% | | Other | $137,032,308 | $114,718,210 | $22,314,100 | 19.45% | | **Total** | **$279,491,328** | **$236,246,405** | **$43,244,923** | **18.31%** | [Note 14 - Subsequent Events](index=26&type=section&id=Note%2014%20-%20Subsequent%20Events) This note discloses significant events occurring after the balance sheet date, including asset sales and acquisitions - The M/V Strategic Endeavor was sold for **$7.7 million** and delivered to the buyer on July 21, 2025[93](index=93&type=chunk) - On July 31, 2025, the Company acquired the remaining **49% equity interest** in Seamar Management for **$2.7 million**, making it a wholly-owned subsidiary[94](index=94&type=chunk) - On August 6, 2025, the Board declared a quarterly cash dividend of **$0.05 per common share**, payable September 15, 2025[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of the Company's financial condition, operational results, liquidity, and capital resources, including industry context [Important Financial and Operational Terms and Concepts](index=27&type=section&id=Important%20Financial%20and%20Operational%20Terms%20and%20Concepts) This section defines key financial and operational terms used in the drybulk shipping industry, such as voyage revenue, charter revenue, and TCE rates - Voyage Revenue: Derived from voyage charters where the Company retains control over vessel operations, recognized straight-line over voyage days[98](index=98&type=chunk)[36](index=36&type=chunk) - Charter Revenue: Earned from time charters where the charterer directs vessel use, recognized straight-line over the charter term, and identified as operating leases under ASC 842[99](index=99&type=chunk)[37](index=37&type=chunk) - Voyage Expenses: Include bunkers, port charges, canal tolls, brokerage commissions, and cargo handling, expensed as incurred[100](index=100&type=chunk) - Time Charter Equivalent (TCE) rates: Total revenues less voyage expenses divided by voyage length, a key industry performance measure[107](index=107&type=chunk)[108](index=108&type=chunk) [Selected Financial Information](index=29&type=section&id=Selected%20Financial%20Information) This section presents selected financial data, including revenue, gross profit, net income, and Adjusted EBITDA, for the reported periods Selected Financial Data (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Total revenue | $156,689 | $131,498 | $25,191 | 19.16% | | Gross Profit | $10,865 | $12,671 | $(1,806) | -14.25% | | Income from operations | $3,654 | $7,614 | $(3,960) | -52.01% | | Net (loss) income attributable to Pangaea Logistics Solutions Ltd. | $(2,742) | $3,683 | $(6,425) | -174.45% | | Basic net (loss) income per share | $(0.04) | $0.08 | $(0.12) | -150.00% | | Adjusted EBITDA | $15,284 | $15,931 | $(647) | -4.06% | | TCE Rates ($/day) | $12,108 | $16,223 | $(4,115) | -25.37% | Selected Financial Data (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Total revenue | $279,491 | $236,246 | $43,245 | 18.31% | | Gross Profit | $21,093 | $31,005 | $(9,912) | -31.97% | | Income from operations | $6,580 | $18,642 | $(12,062) | -64.70% | | Net (loss) income attributable to Pangaea Logistics Solutions Ltd. | $(4,723) | $15,357 | $(20,080) | -130.75% | | Basic net (loss) income per share | $(0.07) | $0.34 | $(0.41) | -120.59% | | Adjusted EBITDA | $30,059 | $35,878 | $(5,819) | -16.22% | | TCE Rates ($/day) | $11,781 | $16,919 | $(5,138) | -30.37% | Selected Balance Sheet Data (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :--------------------------- | :----------------------------- | | Cash and cash equivalents | $59,253 | $86,805 | | Total assets | $915,995 | $936,457 | | Total secured debt, including leases liabilities | $375,794 | $397,372 | | Total shareholders' equity | $459,130 | $474,664 | [Industry Overview](index=32&type=section&id=Industry%20Overview) This section provides an overview of the drybulk shipping industry, highlighting market cyclicality, BDI trends, and fleet expansion impacts - The drybulk shipping industry is cyclical and subject to macroeconomic shifts, geopolitical volatility, and fluctuations in vessel supply/demand and drybulk commodity demand[113](index=113&type=chunk) - The Baltic Dry Index (BDI) averaged **1,467** for Q2 2025, a **21% decrease** from **1,853** in Q2 2024, reflecting weakened market rates[114](index=114&type=chunk) - Average market rates for Panamax, Supramax, and Handysize vessels decreased by approximately **31%** from **$15,104** in Q2 2024 to **$10,347** in Q2 2025[114](index=114&type=chunk) - Fleet expansion from the December 2024 acquisition of **15 vessels** (**58% increase** in total vessel count) led to a **1,365-day increase** in available owned shipping days in Q2 2025[115](index=115&type=chunk) [Quarterly TCE Performance](index=32&type=section&id=Quarterly%20TCE%20Performance) This section analyzes the Company's Time Charter Equivalent (TCE) rates, comparing performance against market indexes for the quarter - For Q2 2025, TCE rates decreased by **25%** to **$12,108** from **$16,223** in Q2 2024, due to overall dry bulk market weakening[117](index=117&type=chunk) - Despite the market decline, Pangaea's TCE rates outperformed the average Baltic panamax, supramax, and handysize market indexes by approximately **17%** due to long-term contracts, specialized fleet, and cargo-focused strategy[117](index=117&type=chunk) [Second Quarter Highlights](index=32&type=section&id=Second%20Quarter%20Highlights) This section summarizes key financial results for the second quarter, including net loss, diluted EPS, Adjusted EBITDA, and cash position - Net loss attributable to Pangaea Logistics Solutions Ltd. was approximately **$2.7 million** for Q2 2025, compared to net income of **$3.7 million** for Q2 2024[120](index=120&type=chunk) - Diluted net loss per share was **$0.04** for Q2 2025, compared to diluted net income per share of **$0.08** for Q2 2024[120](index=120&type=chunk) - Adjusted EBITDA was **$15.3 million** for Q2 2025, a decrease from **$15.9 million** for Q2 2024[120](index=120&type=chunk) - Cash and cash equivalents stood at **$59.3 million** at the end of Q2 2025[120](index=120&type=chunk) [Revenues (Three Months Ended June 30, 2025 vs. 2024)](index=32&type=section&id=Revenues%20(Three%20Months%20Ended%20June%2030%2C%202025%20vs.%202024)) This section analyzes revenue changes for the three months ended June 30, 2025, driven by shipping days and market rates - Total revenue increased by **19%** to **$156.7 million** for Q2 2025, primarily due to a **51% rise** in total shipping days (**6,222 days**), partially offset by decreased market rates[119](index=119&type=chunk) - Voyage revenues increased by **18%** to **$146.3 million**, driven by a **43% increase** in voyage days (**5,575 days**) due to fleet expansion, despite declining market freight rates[121](index=121&type=chunk) - Charter revenues increased by **78%** (**$3.1 million**) to **$6.9 million**, mainly due to a **213% increase** in time charter days (**647 days**), partially offset by a **31% decline** in average market charter rates[122](index=122&type=chunk) - Terminal & Stevedore revenues remained stable at **$3.6 million**[123](index=123&type=chunk) [Operating and Business Expenses (Three Months Ended June 30, 2025 vs. 2024)](index=33&type=section&id=Operating%20and%20Business%20Expenses%20(Three%20Months%20Ended%20June%2030%2C%202025%20vs.%202024)) This section details changes in operating and business expenses for the three months ended June 30, 2025, influenced by fleet expansion and market rates - Voyage expenses increased by **27%** to **$77.8 million**, driven by a **43% increase** in voyage days, leading to higher bunker consumption and port expenses due to fleet expansion[125](index=125&type=chunk) - Charter hire expenses decreased by **4%** to **$31.4 million**, primarily due to a **31% decrease** in market rates for charter-in vessels, despite a **35% increase** in chartered-in days (**2,660 days**)[126](index=126&type=chunk) - Vessel operating expenses increased by **59%** to **$23.4 million**, mainly due to a **66% increase** in ownership days (**3,822 days**) from prior year vessel acquisitions[127](index=127&type=chunk) - General and administrative expenses increased by **43%** to **$7.2 million**, primarily due to the consolidation of Seamar in Q2 2025, which reclassified **$1.8 million** of expenses[129](index=129&type=chunk) [Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024](index=34&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Compared%20to%20Six%20Months%20Ended%20June%2030%2C%202024) This section provides a comparative analysis of financial performance for the six months ended June 30, 2025, versus the prior year [Revenues (Six Months Ended June 30, 2025 vs. 2024)](index=34&type=section&id=Revenues%20(Six%20Months%20Ended%20June%2030%2C%202025%20vs.%202024)) This section analyzes revenue changes for the six months ended June 30, 2025, highlighting impacts from fleet expansion and market rates - Total revenue increased by **18%** to **$279.5 million**, driven by a **46.5% increase** in total shipping days (**11,432 days**) due to fleet expansion, partially offset by declining market charter rates[130](index=130&type=chunk) - Voyage revenues increased by **21%** to **$255.9 million**, primarily due to a **45% increase** in voyage days (**9,771 days**) from SSI vessel acquisition, despite a **30% decline** in the Baltic Dry Index (BDI)[131](index=131&type=chunk) - Charter revenues decreased by **11%** to **$16.8 million**, mainly due to lower time charter revenue per day (**$10,140** in 2025 vs. **$17,776** in 2024), despite a **56% increase** in time charter days (**1,661 days**)[132](index=132&type=chunk) - Terminal & Stevedore revenues increased by **12%** to **$6.7 million**[133](index=133&type=chunk) [Operating and Business Expenses (Six Months Ended June 30, 2025 vs. 2024)](index=34&type=section&id=Operating%20and%20Business%20Expenses%20(Six%20Months%20Ended%20June%2030%2C%202025%20vs.%202024)) This section details changes in operating and business expenses for the six months ended June 30, 2025, influenced by fleet expansion and market rates - Voyage expenses increased by **41%** to **$138.1 million**, primarily due to higher bunker costs, port costs, and canal fees, corresponding to a **45% increase** in voyage days[134](index=134&type=chunk) - Charter hire expenses decreased by **18%** to **$49.1 million**, mainly due to a **34% decrease** in average market rates for charter-in vessels, despite a **25.6% increase** in chartered-in days (**4,405 days**)[135](index=135&type=chunk) - Vessel operating expenses increased by **66%** to **$45.6 million**, driven by the expansion of the owned fleet[136](index=136&type=chunk) - General and administrative expenses increased to **$14.4 million**, primarily due to the consolidation of Seamar Management[138](index=138&type=chunk) [Significant accounting estimates](index=35&type=section&id=Significant%20accounting%20estimates) This section identifies key accounting estimates that require management judgment and can significantly impact financial reporting - Key accounting estimates include voyage completion percentage, allowance for credit losses, vessel salvage value for depreciation, and long-lived asset impairment evaluation[139](index=139&type=chunk) [Long-lived Assets Impairment Considerations](index=35&type=section&id=Long-lived%20Assets%20Impairment%20Considerations) This section outlines the Company's policy for evaluating long-lived assets for impairment and confirms no triggering events occurred - The Company evaluates fixed assets for impairment when indicators are present and undiscounted cash flows are less than carrying amounts, assessing at the asset group level (vessel size/trade)[140](index=140&type=chunk) - No triggering event for impairment testing occurred during the first half of 2025 or 2024[141](index=141&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's sources of liquidity, working capital, and cash flow from operating, investing, and financing activities - The Company finances capital needs through cash flow from operations, common stock issuance, non-controlling interest contributions, and long-term debt and finance leases[142](index=142&type=chunk) - Working capital was **$58.0 million** as of June 30, 2025, down from **$82.9 million** at December 31, 2024[143](index=143&type=chunk) - Net cash provided by operating activities decreased by **$7.9 million** to **$10.0 million** for the six months ended June 30, 2025, primarily due to a net loss[146](index=146&type=chunk) - Net cash used in investing activities decreased by **$6.73 million** to **$2.4 million** for the six months ended June 30, 2025, mainly due to a prior year advance for vessel purchase[147](index=147&type=chunk) - Net cash used in financing activities decreased by **$5.3 million** to **$29.9 million** for the six months ended June 30, 2025, due to lower debt payments and absence of long-term debt proceeds[148](index=148&type=chunk)[149](index=149&type=chunk) [Capital Expenditures](index=37&type=section&id=Capital%20Expenditures) This section details the Company's capital expenditures related to vessel purchases, improvements, and drydocking costs - Capital expenditures relate to vessel purchases, capital improvements, and port & terminal operations, with funding from cash from operations[150](index=150&type=chunk)[151](index=151&type=chunk) - Drydocking costs capitalized totaled approximately **$11.9 million** for the six months ended June 30, 2025, significantly higher than **$3.2 million** in the prior year[151](index=151&type=chunk) [Off-Balance Sheet Arrangements](index=37&type=section&id=Off-Balance%20Sheet%20Arrangements) This section confirms the absence of any off-balance sheet arrangements as of the reporting dates - The Company had no off-balance sheet arrangements as of June 30, 2025, or December 31, 2024[152](index=152&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risks](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risks) This section states no significant changes to the Company's market risk profile since December 31, 2024, referring to the Annual Report for detailed discussion - No significant changes to market risk occurred since December 31, 2024[154](index=154&type=chunk) - Refer to the Annual Report on Form 10-K for the year ended December 31, 2024, for a discussion of market risks[154](index=154&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the Company's disclosure controls and procedures were not effective due to a material weakness in revenue recognition controls, with remediation efforts underway - Disclosure controls and procedures were not effective as of June 30, 2025, due to a material weakness in internal control over financial reporting[155](index=155&type=chunk) - The material weakness relates to the design and documentation of controls over the review and application of the revenue recognition policy under ASC 606[155](index=155&type=chunk) - Remediation actions include enhancing review/approval procedures for revenue recognition, strengthening supervisory review for ASC 606, and aligning general ledger account mapping[156](index=156&type=chunk) - The material weakness will be remediated only after controls are tested and proven effective over a sustained period[156](index=156&type=chunk) PART II OTHER INFORMATION This section covers legal proceedings, risk factors, equity sales, defaults, mine safety disclosures, other information, and exhibits [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various ordinary course legal disputes and claims, primarily cargo claims, with no material financial impact expected - The Company is involved in ordinary course legal disputes and litigation, mainly cargo claims[158](index=158&type=chunk) - Management believes the financial impact of these matters will not be material to the Company's financial position, results of operations, or cash flows[158](index=158&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to consider risk factors from the Annual Report on Form 10-K and any new risks in this report that could materially affect the Company - Readers should consider risk factors from the Annual Report on Form 10-K for December 31, 2024, and any new risks in this report[159](index=159&type=chunk) - These risk factors could materially affect the Company's business, financial condition, or future results[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company's Board authorized a **$15 million** share repurchase program, with approximately **$1.01 million** in shares repurchased during the period - On May 8, 2025, the Board authorized a **$15 million** share repurchase program for common stock[160](index=160&type=chunk) - During the six months ended June 30, 2025, **202,882 shares** were repurchased and retired at an average price of **$4.96 per share**, totaling approximately **$1.01 million**[161](index=161&type=chunk) - As of June 30, 2025, approximately **$14 million** remained available for future repurchases[161](index=161&type=chunk) [Item 3. Defaults upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The Company reported no defaults upon senior securities - There were no defaults upon senior securities[162](index=162&type=chunk) [Item 4. Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures - There were no mine safety disclosures[164](index=164&type=chunk) [Item 5. Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The Company reported no other information - There was no other information to report[165](index=165&type=chunk) [Item 6. Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL documents - Exhibits include CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act) and XBRL instance and taxonomy documents[166](index=166&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report is duly signed on behalf of Pangaea Logistics Solutions Ltd. by its Chief Executive Officer and Chief Financial Officer - The report was signed by Mark L. Filanowski (CEO) and Gianni Del Signore (CFO) on August 8, 2025[168](index=168&type=chunk)[171](index=171&type=chunk)

Financial Data and Key Metrics Changes - For Q2 2025, the company reported an adjusted net loss of $1.4 million and adjusted EBITDA of $15.3 million, with average market rates declining by 25% compared to the same quarter last year [5][11] - Total cash from operations increased by approximately $5 million year over year to $14.4 million, primarily due to an increase in cash provided by net working capital [13] - The company had approximately $59 million in cash and total debt of approximately $376 million at quarter end, with an overall interest expense of $5.7 million, an increase of approximately $2.6 million due to new debt facilities [14] Business Line Data and Key Metrics Changes - Total shipping days rose by 51% year over year, driven by the addition of the SSI Handymax fleet of 15 ships and additional chartered ships [5] - Second quarter TCE rates were $12,108 per day, a premium of approximately 17% over the average published market rates for Panamax, Supramax, and Handysize vessels [11] - Vessel operating expenses increased by approximately 59% year over year, primarily due to the acquisition of the exercise fleet, which increased total owned days by 66% [12] Market Data and Key Metrics Changes - Market conditions during the quarter were mixed, with larger vessel classes like Panamax and Supramax outperforming Handysize [5] - The broader dry bulk market pricing has improved as the company enters the seasonal peak in Arctic trade activity [7] Company Strategy and Development Direction - The company is nearing completion of the expansion of its port and logistics infrastructure at the Port of Tampa, reflecting a strategic commitment to grow its integrated logistics platform [9] - The long-term strategy remains focused on disciplined capital allocation, prioritizing fleet optimization, returning capital to shareholders, and maintaining a strong, flexible balance sheet [10][15] Management's Comments on Operating Environment and Future Outlook - The industry outlook remains cautious due to geopolitical uncertainty and evolving U.S. tariff policies, which have caused some shippers to delay long-term trade route decisions [6] - Despite headwinds, the company remains optimistic about the medium and long-term outlook for the dry bulk market, particularly within the dry bulk trade and geographic regions served [6] Other Important Information - The company has initiated a financing process for two unlevered ships and sold its strategic endeavor, reflecting a proactive approach to optimizing cost of capital [10] - The share repurchase program complements the dividend policy, underscoring the commitment to returning capital to shareholders in a disciplined manner [15] Q&A Session Summary Question: Can you explain the asset sales? - The asset held for sale is the former strategic Endeavor, which was the oldest and smallest ship acquired, and the company decided it was a good time to move it out of the fleet [18][19] Question: Can you provide more details on the S&P market? - The decision on the strategic Endeavor was influenced by its upcoming special survey, and the company is evaluating whether to invest in it or sell it [20] Question: Which specific markets or routes are seeing deferred decisions? - Movements from the Far East to the U.S. were paused due to macro uncertainty, but as potential tariff rates decreased, those movements became profitable again [22][23] Question: Are there any acquisition opportunities on the horizon for Port Logistics? - The company has focused on organic growth through leases and port licenses rather than large acquisitions, as it aims to keep operations related and efficient [25][26]

Financial Performance - The company reported a GAAP net loss of $2.7 million, or $0.04 per share, in 2Q25 [7] - The adjusted net loss was $1.4 million, or $0.02 per share [7] - Adjusted EBITDA decreased by $0.6 million year-over-year to $15.3 million in 2Q25 [8] Capital Allocation - The company repurchased $1 million in shares of common stock at an average price of $4.96 per share during 2Q25 [9] - The company announced the sale of the Handysized Strategic Endeavor for $7.7 million and the purchase of the remaining 49% equity ownership of Seamar Management for $2.7 million [9] - Financing process began for the Strategic Spirit and Strategic Vision, each for $9 million, expected to close in Q3 2025 [9] Operational Highlights - TCE rates outperformed benchmark Panamax, Supramax and Handysize indices by 17% [6] - As of August 6, 2025, 3,671 days were booked at an average of $14,272/day [9] Vessel Acquisitions - The company purchased 7 vessels for $245 million in 2021 & 2022 [17] - The company purchased 3 vessels for $83 million & Acquired 15 vessels for 1806 million shares in 2023 & 2024 [17]

Group 1: Earnings Performance - Pangaea Logistics reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.10 per share a year ago, representing an earnings surprise of +50.00% [1] - The company posted revenues of $156.69 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 26.65%, and compared to year-ago revenues of $131.5 million [2] - Over the last four quarters, Pangaea Logistics has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Pangaea Logistics shares have lost about 7.8% since the beginning of the year, while the S&P 500 has gained 7.9% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates of $0.03 on $132.27 million in revenues for the coming quarter and $0.11 on $523.44 million in revenues for the current fiscal year [7] - The estimate revisions trend for Pangaea Logistics was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Group 3: Industry Context - The Transportation - Shipping industry, to which Pangaea Logistics belongs, is currently in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Pangaea Logistics Solutions Q2 2025 Earnings Release [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported a non-GAAP adjusted net loss of $1.4 million on increased revenue, as a 51% rise in shipping days was offset by a 25% decline in TCE rates Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $156.7 million | $131.5 million | +19.2% | | Non-GAAP Adjusted Net Loss | ($1.4 million) | $4.6 million (Income) | - | | Adjusted EPS | ($0.02) | $0.10 | - | | Adjusted EBITDA | $15.3 million | $15.9 million | -4.1% | | TCE Rate per day | $12,108 | $16,223 | -25% | | Total Shipping Days | 6,222 | ~4,120 | +51% | - The company's TCE rate of **$12,108 per day outperformed** the average Baltic Panamax, Supramax, and Handysize indices by **17%**, attributed to its long-term contracts (COAs) and specialized fleet[4](index=4&type=chunk) Balance Sheet and Capital Allocation (as of June 30, 2025) | Item | Amount | | :--- | :--- | | Cash and Cash Equivalents | $59.3 million | | Total Debt (incl. finance leases) | $379.7 million | | Finance Lease Repayments (Q2) | $7.1 million | | Long-Term Debt Repayments (Q2) | $4.1 million | | Dividends Paid (Q2) | $3.2 million | | Stock Repurchases (Q2) | $1.0 million | - Recent corporate activities include the sale of the vessel Strategic Endeavor for **$7.7 million**, the acquisition of the remaining **49% of Seamar Management** for **$2.7 million**, and initiating financing for two other vessels[7](index=7&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.05 per common share**[8](index=8&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management noted premium TCE returns despite market pressures, citing signs of Q3 stabilization and a focus on disciplined capital deployment and operational expansion - CEO Mark Filanowski stated that the company's focused execution and flexible business model allowed it to achieve **premium TCE returns** even as market rates were pressured[9](index=9&type=chunk) - Market uncertainty around tariffs and port fees is causing shippers to delay long-term commitments; however, seasonal demand in South America led to an **uptick in market rates** at the end of Q2[9](index=9&type=chunk) - Entering Q3, the company sees signs of stabilization and increased activity, particularly in its panamax and supramax segments, driven by the seasonal arctic trade, and has achieved an average TCE of **$14,272 per day** quarter-to-date[9](index=9&type=chunk) - The company is focused on disciplined capital deployment, highlighted by the repurchase of over **200,000 shares**, financing two vessels, and the opportunistic sale of an older vessel[11](index=11&type=chunk) - Pangaea is expanding its land-based operations, with equipment installation beginning at its Redwing Terminal in Tampa and new terminal operations starting in Texas, Louisiana, and Mississippi[11](index=11&type=chunk) [Strategic Update](index=3&type=section&id=Strategic%20Update) The company's strategy centers on developing its integrated dry bulk logistics services by leveraging its specialized fleet, expanding terminal operations, and renewing its assets - The company aims to be a leading dry bulk logistics company by providing specialized shipping and supply chain offerings in niche markets to drive **premium TCE returns**[12](index=12&type=chunk) - Pangaea is leveraging its integrated model, which combines the world's largest high ice class dry bulk fleet with stevedoring, port, and terminal operations[13](index=13&type=chunk) - In Q2, the owned fleet of **41 vessels** was well utilized, supplemented by an average of **29 chartered-in vessels** to meet cargo commitments[14](index=14&type=chunk) - The company continues its fleet renewal strategy by selectively investing in vessels and divesting older assets, such as the sale of the 2010-built Strategic Endeavor[15](index=15&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The unaudited statements show a Q2 net loss, a stable asset base with lower cash, and positive operating cash flow offset by financing activities like debt repayment [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Higher revenue in Q2 2025 was outpaced by expense growth, leading to a 52% decrease in operating income and a net loss of $2.9 million Q2 Statement of Operations Summary (in millions) | Line Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $156.7 | $131.5 | | Total Expenses | $153.0 | $123.9 | | Income from Operations | $3.7 | $7.6 | | Total Other Expense, Net | ($6.6) | ($3.6) | | Net (Loss) Income | ($2.9) | $4.0 | | Net (Loss) Attributable to Pangaea | ($2.7) | $3.7 | | (Loss) Earnings Per Share (Diluted) | ($0.04) | $0.08 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased slightly to $916.0 million, primarily due to a $27.6 million reduction in cash and cash equivalents Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59.3 | $86.8 | | Total current assets | $184.0 | $192.0 | | Total assets | $916.0 | $936.5 | | Total current liabilities | $126.0 | $109.1 | | Total liabilities | $456.9 | $461.8 | | Total stockholders' equity | $459.1 | $474.7 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the first half of 2025, the company generated $10.0 million in operating cash, which was offset by $35.2 million used in financing activities Six-Month Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10.0 | $18.0 | | Net cash used in investing activities | ($2.4) | ($9.1) | | Net cash used in financing activities | ($35.2) | ($29.9) | | Net change in cash and cash equivalents | ($27.6) | ($21.1) | [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The company reported a slight decrease in Adjusted EBITDA to $15.3 million and a non-GAAP adjusted net loss of $1.4 million for Q2 2025 Reconciliation of Net (Loss) Income to Adjusted EBITDA (Q2) | Line Item (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income | ($2.9) | $4.0 | | Interest expense, net | $5.7 | $3.1 | | Depreciation and amortization | $10.6 | $7.5 | | EBITDA | $13.4 | $14.5 | | Non-GAAP Adjustments | $1.9 | $1.4 | | **Adjusted EBITDA** | **$15.3** | **$15.9** | Reconciliation to Non-GAAP Adjusted Net (Loss) Income (Q2) | Line Item (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income attributable to Pangaea | ($2.7) | $3.7 | | Add: Unrealized loss on derivative instruments | $1.3 | $0.9 | | **Non-GAAP adjusted net (loss) income** | **($1.4)** | **$4.6** | | **Adjusted EPS - diluted** | **($0.02)** | **$0.10** | - Management uses non-GAAP measures like **Adjusted EBITDA** and **Adjusted EPS** for internal decision-making and to evaluate period-to-period performance of the core business[27](index=27&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides details for the Q2 2025 earnings conference call, an overview of Pangaea's business, and the forward-looking statements disclaimer - The company will host a conference call to discuss financial results on **Friday, August 8, at 8:00 a.m. ET**[16](index=16&type=chunk) - Pangaea provides seaborne drybulk logistics and transportation services, including terminal and stevedoring operations, for a wide variety of industrial customers and cargoes[32](index=32&type=chunk) - The press release contains forward-looking statements that are subject to various risks and uncertainties, including fluctuations in charter rates, changes in demand, and general market conditions[33](index=33&type=chunk)

Core Viewpoint - Pangaea Logistics Solutions Ltd. reported a non-GAAP adjusted net loss of $1.4 million for Q2 2025, with total revenue of $156.7 million, reflecting challenges in the maritime logistics sector due to decreased TCE rates and increased shipping days [3][4][5]. Financial Performance - The company experienced a non-GAAP adjusted net loss of $1.4 million, or $0.02 per share, compared to a net income of $3.7 million in the same period of 2024 [3][12]. - Total revenue for the second quarter of 2025 was $156.7 million, up from $131.5 million in Q2 2024 [3][16]. - Adjusted EBITDA decreased by 4.1% to $15.3 million, with an adjusted EBITDA margin of 9.8%, down from 12.1% in the prior year [5][12]. Shipping Operations - The average TCE rate earned was $12,108 per day, a decrease from $16,223 per day in Q2 2024, but exceeded benchmark averages by 17% [4][12]. - Total shipping days increased by 51% to 6,222 days, primarily due to the acquisition of fifteen handy-sized vessels [3][5]. Debt and Cash Position - As of June 30, 2025, the company had $59.3 million in cash and cash equivalents, with total debt of $379.7 million [6][12]. - The company repaid $7.1 million in finance leases and $4.1 million in long-term debt during the quarter [6][12]. Strategic Developments - Pangaea sold the Strategic Endeavor for $7.7 million and purchased the remaining 49% equity ownership of Seamar Management for $2.7 million [7][12]. - The company is focused on disciplined capital deployment, including share repurchases and financing for new vessels [9][10]. Market Outlook - The CEO noted a dynamic global trade environment with signs of stabilization and increased activity in the panamax and supramax segments as the company enters the peak arctic trade season [9][10]. - The company is expanding its terminal operations, with new operations planned in multiple ports [9][11].

Company Overview - Pangaea Logistics Solutions Ltd. (Nasdaq: PANL) is a global provider of comprehensive maritime logistics solutions, catering to a diverse range of industrial customers requiring transportation of various dry bulk cargoes such as grains, pig iron, hot briquetted iron, bauxite, alumina, cement clinker, dolomite, and limestone [3]. Financial Results Announcement - The company will release its second quarter 2025 financial results after the market closes on August 7, 2025, followed by a conference call on August 8, 2025, at 8:00 a.m. ET to discuss the results and conduct a Q&A session [1]. Conference Call Details - The conference call will include presentation materials available on the company's SEC filing and Investor Relations section of its website [2]. - Domestic participants can join the live teleconference at 1-833-316-1983, while international participants can call 1-785-838-9310, using Conference ID: PANLQ225 [2]. - A replay of the teleconference will be available until August 15, 2025, with domestic and international replay numbers provided [2].