Third quarter Net Loss of $90.7M and Adjusted Net Income of $125.5M Continued value driver execution drove third quarter Adjusted EBITDA of $186.3M Third quarter Loss Per Diluted Share of $0.62 and Adjusted Earnings Per Diluted Share of $0.82 IMS add-on product lines acquired CLAYTON, Mo., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Perimeter Solutions, Inc. (NYSE: PRM) (“Perimeter,” “Perimeter Solutions,” or the “Company”), a leading global solutions provider for the Fire Safety and Specialty Products industries, t ...

Carillon Tower Advisers, an investment management company, released its “Carillon Eagle Small Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Equity markets sustained their upward rally from April’s lows, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for further interest rate cuts from the U.S. Federal Reserve. Small-cap stocks mirrored the rally by extending the momentum in the quarter. The Russell 2000® Growth Index wa ...

Core Viewpoint - Perimeter Solutions will release its financial results for Q3 2025 on October 30, 2025, before market opening [1] Financial Results Announcement - The company will host a conference call at 8:30 a.m. ET on the same day to discuss the results [2] - The call will be led by CEO Haitham Khouri, CFO Kyle Sable, and Head of Investor Relations Seth Barker [2] - Access to the live webcast will be available on Perimeter's investor relations website [2] Company Overview - Perimeter Solutions is headquartered in St. Louis, Missouri, and operates in the Fire Safety and Specialty Products industries [3] - The company has two operating segments: Fire Safety and Specialty Products [3] - The Fire Safety segment offers fire retardants, firefighting foams, and related specialized equipment and services [3] - The Specialty Products segment focuses on non-fire safety markets, with a significant application in Phosphorus Pentasulfide (P2S5) based lubricant additives [3] - The Specialty Products segment also includes IMS, which manufactures electronic or electro-mechanical components for various end markets, emphasizing aftermarket repair and replacement [3]

Core Insights - The Lazard US Systematic Small Cap Equity ETF (SYZ) has an annualized total return of 3.56% since its inception, outperforming the benchmark Russell 2000 Index, which has a return of -0.04% [1] - The ETF was converted from a mutual fund on September 12, 2023, and has been trading for 17 days as an ETF [1] - The ETF's portfolio consists of 427 small-cap stocks selected through a proprietary automated process, with market caps ranging from $54.5 million to $15.9 billion [6] Investment Opportunities - The ETF's valuation metrics show an average price-to-cash flow ratio of 9.93x, significantly lower than the Russell 2000's 15.07x, and a free cash flow yield of 6.57%, compared to the index's 1.98% [7] - Notable holdings in the ETF include Mueller Industries (MLI), which has nearly doubled its market cap from $5.5 billion to $10.9 billion in 22 months, and is trading at 14.6 times its 2025 earnings per share estimate of $6.75 [9] - Perimeter Solutions (PRM), the ETF's seventh-largest holding, has seen a 73% increase in its stock price in 2025, with sales growth of 26% to $234.7 million in the first half of 2025 [10][11] - Willdan Group (WLDN) has a market cap of $1.4 billion and reported a 27.5% increase in net revenues to $180.3 million in the first half of 2025, with a full-year revenue guidance of $345 million [17][19] Market Context - The ETF's recent performance is set against a backdrop where U.S. stocks experienced a decline for the first time in eight trading sessions, while gold prices reached a record high of over $4,000 [5] - The small-cap sector is gaining attention as large-cap stocks have become expensive, prompting a shift in focus towards smaller companies [4]

Core Insights - Perimeter Solutions has signed a transformative five-year agreement with the USDA, enhancing wildfire response capabilities and providing over $150 million in savings to the federal government and taxpayers [1][12] Company Developments - The contract ensures a full conversion to Perimeter's powder retardant technology and includes significant upgrades to air tanker base capacity and capabilities, transitioning to full-service operations at most federal tanker bases [2] - Under the agreement, 100% of Perimeter's retardant for federal use will be manufactured in the United States, reinforcing support for American manufacturing and supply chain diversification [3] Industry Impact - The partnership aims to modernize the federal fire retardant specification and qualification process, setting new standards for performance, safety, and reliability in wildfire management [5] - The agreement is seen as a commitment to American firefighters and communities, enhancing the operational excellence and fiscal responsibility in wildfire management [4]

Group 1 - Perimeter has increased approximately 6% since the last recommendation three weeks ago, indicating positive market performance [1] - The quarterly results and management commentary provide further support for the initial investment thesis, highlighting operational leverage in Fire Safety and continued growth in Specialty Products [1] - The focus is on small and midcap companies with asymmetric upsides, suggesting a strategic investment approach in these sectors [1] Group 2 - The analyst has a diverse background, having worked in the Industrials and chemicals sector, as well as in finance and technology at a Canadian charity, which enriches the analysis [1] - The combination of execution experience and analytical skills is emphasized as a key factor in enhancing investment insights [1]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 reached $91.3 million, reflecting a 41% increase year-over-year, while year-to-date adjusted EBITDA was $109.4 million, up 42% [4][20][25] - Q2 GAAP loss per share was $0.22 compared to GAAP earnings per share of $0.14 in the prior year quarter, while adjusted EPS for Q2 was $0.39, up from $0.25 [20][21] - Year-to-date GAAP earnings per share improved to $0.16 from a loss of $0.42 in the same period last year [21] Business Line Data and Key Metrics Changes - Fire Safety segment revenue for Q2 was $120.3 million, a 22% year-over-year increase, and year-to-date revenue was $157.4 million, up 27% [16] - Specialty Products segment Q2 net sales were $42.4 million, a 47% increase from the prior year, with year-to-date net sales reaching $77.2 million, up 23% [19] - Fire Safety's adjusted EBITDA for Q2 was $77.7 million, representing a 40% increase over last year, while Specialty Products adjusted EBITDA rose to $13.7 million from $9.3 million in the prior year [18][20] Market Data and Key Metrics Changes - U.S. wildfire activity was approximately normal in the first half of 2025, with expectations that the full season will not be exceptionally mild [18][34] - International operations, including Canada, Europe, the Middle East, and Asia Pacific, contributed positively to revenue growth due to severe conditions [17] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns with public market liquidity, focusing on three operational pillars: owning exceptional businesses, applying operational value drivers, and decentralized management [5][6][8] - Significant capital investment of nearly $62 million was made in Q2, including capital expenditures, share repurchases, and asset purchases to support the retardant business [4][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of Q2 performance, indicating that there were no one-time factors affecting results [50] - The company is committed to resolving operational challenges at the Saje plant and expects ongoing impacts until control is regained [58] Other Important Information - The company settled litigation with Compass Minerals for $20 million, which included the acquisition of surplus assets and the return of intellectual property [10][59] - Capital expenditures for Q2 were $12.8 million, with a focus on growth and productivity initiatives [24][26] Q&A Session Summary Question: What is the range of normal wildfire activity? - Management indicated that a normal fire season is roughly 6 million to 7 million acres burned in the contiguous U.S., excluding Alaska [32][34] Question: Is there an inverse relationship between revenue per acre burned and acres burned? - Management confirmed that large swings in acres can lead to muted changes in retardant usage due to resource availability and operational factors [38][40] Question: How has resource availability evolved? - Management noted that California has expanded its air tanker fleet, which improves resource availability, and emphasized the importance of contract structures to support resource availability [44][45] Question: How sustainable is the Q2 performance in Fire Safety? - Management stated that Q2 performance is sustainable and not driven by one-time factors [50] Question: What was the impact of the Saje plant outages on financial performance? - Management acknowledged significant impacts from ongoing operational issues at the Saje plant, which are expected to continue until control is regained [58]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q2 reached $91.3 million, reflecting a 41% increase year-over-year, while year-to-date adjusted EBITDA was $109.4 million, up 42% [4][19][24] - Q2 GAAP loss per share was $0.22 compared to GAAP earnings per share of $0.14 in the prior year quarter, while adjusted EPS for Q2 was $0.39, up from $0.25 [19][20] - Year-to-date GAAP earnings per share improved to $0.16 from a loss of $0.42 in the same period last year [20] Business Line Data and Key Metrics Changes - Fire Safety segment revenue for Q2 was $120.3 million, a 22% year-over-year improvement, and year-to-date revenue was $157.4 million, a 27% gain [15] - Specialty Products segment Q2 net sales were $42.4 million, a 47% increase from the prior year, with year-to-date net sales reaching $77.2 million, up 23% [18] - Fire Safety's adjusted EBITDA for Q2 was $77.7 million, representing a 40% increase over last year, while Specialty Products adjusted EBITDA rose to $13.7 million from $9.3 million in the prior year [17][19] Market Data and Key Metrics Changes - U.S. wildfire activity was approximately normal in the first half of 2025, with expectations that the full season will not be exceptionally mild [17][18] - International operations, including Canada, Europe, the Middle East, and Asia Pacific, contributed positively to revenue growth due to severe conditions [15][16] Company Strategy and Development Direction - The company aims to provide high-quality products and exceptional service while delivering private equity-like returns with public market liquidity [5] - The strategy is built on three operational pillars: owning exceptional businesses, applying operational value drivers, and operating in a decentralized manner [6] - Significant investments were made in capital expenditures, with nearly $62 million allocated in Q2, including the opening of a new retardant production facility in Sacramento, California [4][9][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the normalized fire activity and the operational performance of the business, while remaining prepared for varying conditions [17][18] - The company is committed to resolving operational challenges at the Saje plant and expects ongoing impacts until control is regained [12][55] - Management highlighted the importance of expanding the air tanker fleet to improve resource availability and support fire suppression efforts [39][42] Other Important Information - The company settled litigation with Compass Minerals for $20 million, which included the return of intellectual property and acquisition of surplus assets [10][56] - Capital expenditures for Q2 were $12.8 million, with a focus on growth and productivity initiatives [24][25] - The company repurchased 2.9 million shares for approximately $32 million in Q2, indicating a strategic approach to share repurchases [26] Q&A Session Summary Question: Clarification on normal wildfire activity range - Management confirmed that a normal fire season is roughly in the range of 6 million to 7 million acres burned in the contiguous U.S., excluding Alaska [29][30] Question: Inverse relationship between revenue per acre burned and acres burned - Management acknowledged the complexity of the relationship, noting that large swings in acres can lead to smaller changes in retardant usage due to resource availability [34][39] Question: Sustainability of Q2 Fire Safety performance - Management indicated that the performance in Q2 is sustainable and not driven by one-time factors [47][48] Question: Impact of outages on Specialty Products growth - Management noted that ongoing operational issues at the Saje plant have negatively impacted performance, but the IMS acquisition contributed positively to growth [50][55] Question: Details on the $20 million settlement with Compass - Management confirmed that the settlement included both intangibles and assets valued at approximately $5 million [56] Question: Changes in contract structure with government for fire suppression - Management is working on mutually beneficial changes to de-variabilize the business and improve predictability in cash flows [59][60]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited condensed consolidated financial statements for the period ended June 30, 2025, show improved net income and increased operating cash flow [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $420,079 | $394,024 | | Accounts receivable, net | $121,416 | $56,048 | | Inventories | $150,049 | $116,347 | | **Total Assets** | **$2,486,262** | **$2,416,394** | | **Total Current Liabilities** | $103,964 | $62,488 | | Long-term debt, net | $668,439 | $667,774 | | **Total Liabilities** | **$1,307,631** | **$1,259,124** | | **Total Stockholders' Equity** | **$1,178,631** | **$1,157,270** | - The increase in total assets was primarily driven by a significant rise in **accounts receivable** and **inventories**, reflecting seasonal business activity. Total liabilities also increased, mainly due to higher current liabilities including deferred revenue and founders advisory fees payable[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $162,639 | $127,276 | $234,669 | $186,320 | | Gross profit | $101,496 | $73,267 | $129,649 | $93,969 | | Operating (loss) income | $(26,226) | $45,018 | $51,581 | $(29,846) | | Net (loss) income | $(32,161) | $21,650 | $24,525 | $(60,908) | | Diluted (Loss) EPS | $(0.22) | $0.14 | $0.16 | $(0.42) | - For the six months ended June 30, 2025, the company reported **net income of $24.5 million**, a significant improvement from a net loss of $60.9 million in the prior-year period. This was driven by a **26% increase in net sales** and a substantial decrease in 'Founders advisory fees' expense, which fell from $68.9 million to $16.3 million[16](index=16&type=chunk) - For the three months ended June 30, 2025, the company posted a **net loss of $32.2 million**, compared to a net income of $21.7 million in the same period of 2024. The loss was primarily due to a large **$96.9 million expense for 'Founders advisory fees - related party'**, which reflects the change in fair value of the liability[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $20,894 | $11,418 | | Net cash (used in) provided by investing activities | $(42,803) | $187 | | Net cash used in financing activities | $(40,560) | $(14,784) | | **Net change in cash and cash equivalents** | **$(57,798)** | **$(4,114)** | - **Cash from operations increased to $20.9 million** for the first six months of 2025 from $11.4 million in the prior year, despite a significant increase in accounts receivable, aided by higher net income and deferred revenue[23](index=23&type=chunk) - Investing activities used **$42.8 million**, primarily for property and equipment purchases (**$17.6 million**), intangible asset purchases (**$15.2 million**), and a business acquisition (**$10.0 million**)[23](index=23&type=chunk) - Financing activities used **$40.6 million**, dominated by **$40.4 million in common stock repurchases**[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company operates in two segments: Fire Safety and Specialty Products. In 2024, approximately **79% of revenues were from the United States**[26](index=26&type=chunk) - On March 28, 2025, the IMS division acquired assets and data rights for certain product lines for **$10.0 million in cash**[36](index=36&type=chunk) - In May 2025, the company settled trade secret litigation with a subsidiary of Compass Minerals International, Inc. and acquired related assets for **$20.0 million**, with **$15.2 million allocated to technology-related intangible assets**[37](index=37&type=chunk) - As of June 30, 2025, the company had **$675.0 million in Senior Notes due 2029** and no outstanding borrowings under its **$100.0 million Revolving Credit Facility**[43](index=43&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk) - On May 7, 2025, the Board re-established the limit for common stock repurchases at **$100.0 million**. As of June 30, 2025, **$78.3 million remained available** under the plan[70](index=70&type=chunk) Segment Net Sales (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fire Safety | $120,284 | $98,538 | $157,447 | $123,693 | | Specialty Products | $42,355 | $28,738 | $77,222 | $62,627 | | **Total** | **$162,639** | **$127,276** | **$234,669** | **$186,320** | Segment Adjusted EBITDA (in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Fire Safety | $77,659 | $55,639 | $87,744 | $55,398 | | Specialty Products | $13,679 | $9,269 | $21,677 | $21,646 | | **Total** | **$91,338** | **$64,908** | **$109,421** | **$77,044** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a **26% increase in net sales** for the first six months of 2025, a **$24.5 million net income**, and strong liquidity with **$140.7 million cash** [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Consolidated Results - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Net sales | $162,639 | $127,276 | $35,363 | 28% | | Gross profit | $101,496 | $73,267 | $28,229 | 39% | | Operating (loss) income | $(26,226) | $45,018 | $(71,244) | (158%) | | Net (loss) income | $(32,161) | $21,650 | $(53,811) | (249%) | - **Q2 2025 net sales increased 28% YoY**, driven by a **$21.7 million increase in the Fire Safety segment** and a **$13.7 million increase in the Specialty Products segment**, including **$9.3 million from recent acquisitions**[112](index=112&type=chunk) - The **Q2 2025 net loss** was driven by a **$96.9 million expense for Founders advisory fees**, reflecting the change in fair value of the liability due to an increase in the company's share price[115](index=115&type=chunk) Consolidated Results - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | Change $ | Change % | | :--- | :--- | :--- | :--- | :--- | | Net sales | $234,669 | $186,320 | $48,349 | 26% | | Gross profit | $129,649 | $93,969 | $35,680 | 38% | | Operating income (loss) | $51,581 | $(29,846) | $81,427 | (273%) | | Net income (loss) | $24,525 | $(60,908) | $85,433 | (140%) | - For the first six months of 2025, **net sales grew 26% YoY**. Fire Safety sales increased by **$33.7 million**, while Specialty Products sales rose by **$14.6 million**, including **$16.9 million from acquisitions**[118](index=118&type=chunk) [Business Segments Performance](index=41&type=section&id=Business%20Segments%20Performance) - **Fire Safety Segment Adjusted EBITDA increased by $22.0 million (39.5%) in Q2 2025** and **$32.3 million (58.3%) in the first six months of 2025** compared to the prior year periods, primarily due to higher net sales[124](index=124&type=chunk)[126](index=126&type=chunk) - **Specialty Products Segment Adjusted EBITDA increased by $4.4 million (47.5%) in Q2 2025**, driven by higher sales from acquisitions. For the first six months, it was relatively flat compared to the prior year[125](index=125&type=chunk)[127](index=127&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) - The company believes its existing **cash of $140.7 million**, cash from operations, and availability under its **$100.0 million Revolving Credit Facility** will be sufficient to meet its requirements for at least the next 12 months[133](index=133&type=chunk) - As of June 30, 2025, the company had **no outstanding borrowings** under its Revolving Credit Facility[137](index=137&type=chunk) - During the six months ended June 30, 2025, the company repurchased **3,774,675 shares for $40.4 million** under its Share Repurchase Plan[142](index=142&type=chunk)[151](index=151&type=chunk) - In February 2025, the company settled the 2024 Fixed Annual Advisory Amount by issuing **1,837,304 shares of Common Stock** and paying **$6.7 million in cash**[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rates on its variable-rate revolving credit facility, and commodity price fluctuations - Primary market risks include **foreign currency fluctuations**, **interest rate changes on variable-rate debt**, and **commodity price volatility**[154](index=154&type=chunk) - Foreign currency exposure is mainly to the **Euro, Canadian dollar, Norwegian krone, and Australian dollar**[155](index=155&type=chunk) - Interest rate risk is tied to the Revolving Credit Facility, which had **no outstanding balance** as of June 30, 2025[156](index=156&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The company's principal executive and financial officers concluded that **disclosure controls and procedures were effective** as of June 30, 2025[160](index=160&type=chunk) - **No material changes** were made to the internal control over financial reporting during the quarter ended June 30, 2025[161](index=161&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including AFFF litigation, but does not expect a material adverse effect on its financials - The company is involved in litigation related to **aqueous film forming foam (AFFF)** but does not expect it to have a material adverse effect[162](index=162&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were reported since the 2024 Annual Report - **No material changes** to the company's risk factors were reported since the 2024 Annual Report[163](index=163&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company details common stock repurchases for the quarter ended June 30, 2025, with **2,886,221 shares repurchased** and a re-established **$100.0 million repurchase limit** Common Stock Repurchases for the Quarter Ended June 30, 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1,071,885 | $9.70 | | May 2025 | 1,443,727 | $11.90 | | June 2025 | 370,609 | $12.28 | | **Total** | **2,886,221** | **N/A** | - On May 7, 2025, the Board re-established the limit for Common Stock repurchases at **$100.0 million**. As of June 30, 2025, approximately **$78.3 million remained available** for repurchase[166](index=166&type=chunk) [Other Items (Items 3, 4, 5, 6)](index=47&type=section&id=Other%20Items) Items 3 and 4 are not applicable, Item 5 notes no Rule 10b5-1 trading plan changes, and Item 6 lists report exhibits - **No defaults on senior securities or mine safety disclosures** were reported[167](index=167&type=chunk) - **No officers or directors adopted or terminated a Rule 10b5-1 trading arrangement** during the quarter[168](index=168&type=chunk)

Financial Performance - Fire Safety revenue increased by 22% to $120284 thousand in Q2 2025 and 27% to $157447 thousand YTD 2025[15] - Fire Safety adjusted EBITDA increased by 40% to $77659 thousand in Q2 2025 and 58% to $87744 thousand YTD 2025, with adjusted EBITDA margin of 65% in Q2 2025 and 56% YTD 2025[15] - Specialty Products revenue increased by 47% to $42355 thousand in Q2 2025 and 23% to $77222 thousand YTD 2025[15] - Specialty Products adjusted EBITDA increased by 48% to $13679 thousand in Q2 2025, but remained flat at $21677 thousand YTD 2025, with adjusted EBITDA margin of 32% in Q2 2025 and 28% YTD 2025[15] - Consolidated revenue increased by 28% to $162639 thousand in Q2 2025 and 26% to $234669 thousand YTD 2025[15] - Consolidated adjusted EBITDA increased by 41% to $91338 thousand in Q2 2025 and 42% to $109421 thousand YTD 2025, with adjusted EBITDA margin of 56% in Q2 2025 and 47% YTD 2025[15] Capital Structure and Allocation - Net debt to LTM adjusted EBITDA is 17x, with LTM adjusted EBITDA of $312671 thousand[18, 22, 33] - The company has $1407 million in cash and cash equivalents as of Q2 2025[22] - Capital expenditures for Q2 2025 were $97 million, with $200 million allocated to M&A and $322 million to share buybacks[18] Long-Term Assumptions - Annual interest expense is projected to be approximately $40 million[16] - Annual tax-deductible depreciation and amortization are projected to be approximately $20-25 million[16] - The cash tax rate is estimated to be around 20-25%[16]