Core Insights - Soundhound AI has gained attention in the market due to the growing interest in AI technologies, particularly since the last coverage on December 10, 2024 [1] Company Analysis - The company is positioned within the tech sector, which is currently experiencing significant investor interest [1] - The investment philosophy emphasizes simplicity, focusing on fundamental financial ratios and metrics for clearer insights [1] Market Trends - There is a notable trend of investors eager to capitalize on the proliferation of AI technologies, indicating a potential growth area for companies like Soundhound AI [1]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - Interface (TILE) is highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for growth investors, with double-digit growth being particularly desirable [4] - Interface's projected EPS growth is 8.2% for the current year, significantly higher than the industry average of 4.8% [5] Group 3: Asset Utilization - The asset utilization ratio, or sales-to-total-assets (S/TA) ratio, is an important indicator of efficiency in generating sales [6] - Interface has an S/TA ratio of 1.1, outperforming the industry average of 1.02, indicating better asset efficiency [6] Group 4: Sales Growth - Sales growth is another key metric, with Interface expected to achieve a 2.8% sales growth this year, compared to the industry average of 0% [7] Group 5: Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate strongly with stock price movements [8] - The current-year earnings estimates for Interface have increased by 2.6% over the past month, indicating positive momentum [8] Group 6: Overall Positioning - Interface has achieved a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [10]

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________ Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 30, 2025 Commission File Number 001-33994 INTERFACE INC (Exact name of registrant as specified in its charter) | Georgia | | 58-1451243 | | --- | --- | --- | | (State or other jurisdiction of | | ...

Financial Data and Key Metrics Changes - Interface reported a 4% year-over-year currency neutral growth in net sales for Q1 2025, with net sales totaling $297.4 million, an increase of 2.6% compared to Q1 2024 [6][17] - Adjusted gross profit margin for Q1 was 37.7%, a decrease of 82 basis points from the prior year due to higher manufacturing and freight costs [17] - Adjusted EPS increased to $0.25 from $0.24 in Q1 2024, while adjusted EBITDA decreased to $37 million from $38.8 million [18] Business Line Data and Key Metrics Changes - Global education billings increased by 13%, supported by modernization initiatives and regional migration [12] - Health care billings rose by 16% year-over-year, driven by strong orders converting to billings [12] - Corporate office billings decreased by 7% year-over-year, attributed to timing, but growth is expected for the full year [13] Market Data and Key Metrics Changes - In The Americas, net sales grew by 6% and currency neutral orders were up 10% [11] - EAAA experienced a softer macro environment, with currency neutral orders down 6% year-over-year [15] - Consolidated currency neutral orders increased by 3% year-over-year, with a strong backlog up 12% [15] Company Strategy and Development Direction - The "One Interface" strategy is focused on building strong global functions, enhancing productivity, expanding margins, and leading in design performance and sustainability [6][10] - A new VP of Global Product Category Management was appointed to optimize the product innovation pipeline [7] - The company is committed to sustainability, aiming to be carbon negative by 2040 and incorporating captured carbon into manufacturing processes [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong order momentum and backlog, anticipating a strong second quarter despite global macro uncertainties [20][21] - The company is monitoring the tariff environment, with plans to offset impacts through pricing and productivity [16][19] - Management highlighted the importance of local manufacturing to mitigate tariff exposure [16][54] Other Important Information - Capital expenditures for Q1 2025 were $7.5 million, up from $4 million in 2024, with a focus on strategic investments [19] - The company expects net sales for Q2 2025 to be between $355 million and $365 million [20] Q&A Session Summary Question: Q1 results were better than expected, particularly on gross margin and SG&A - Management confirmed that the "One Interface" strategy is delivering results, with strong growth in all product categories globally [23][24] Question: Guidance was raised on the lower end; what drove this? - The increase in guidance was based on strong Q1 results and positive outlook for Q2, supported by strong order growth [31][32] Question: How did EAAA perform compared to The Americas? - EAAA had softer results, but Asia Pacific showed strong double-digit growth [37][39] Question: What is the status of the government business? - The government segment, while small, showed strength in Q1, with activity holding steady [42] Question: Any changes to capital allocation given the strong balance sheet? - The focus remains on investing in the business and executing on those investments to drive growth [47] Question: Concerns about timing mismatch with tariffs and pricing? - Management believes the timing of cost increases and pricing adjustments will align well [61] Question: How is the new global product category management role expected to impact growth? - This role is aimed at optimizing the innovation funnel and is expected to yield long-term benefits [65][66] Question: What is the outlook on the return to office dynamic? - Management sees ongoing churn and opportunities for modernization in office spaces, indicating a positive outlook for growth [71][72]

分组1 - Interface reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, and showing a slight increase from $0.24 per share a year ago, resulting in an earnings surprise of 25% [1] - The company achieved revenues of $297.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.82%, and an increase from $289.74 million year-over-year [2] - Interface has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed, losing approximately 22.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $350 million, and for the current fiscal year, it is $1.54 on revenues of $1.34 billion [7] - The Textile - Home Furnishing industry, to which Interface belongs, is currently ranked in the top 5% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Financial Data and Key Metrics Changes - Interface reported a 4% year-over-year currency neutral growth in net sales for Q1 2025, with net sales totaling $297.4 million, an increase of 2.6% compared to Q1 2024 [5][16] - Adjusted earnings per share grew by 4% year-over-year, reaching $0.25 compared to $0.24 in Q1 2024 [5][18] - Adjusted gross profit margin was 37.7%, a decrease of 82 basis points from the prior year due to higher manufacturing and freight costs [16][17] - Adjusted operating income remained flat at $25.5 million compared to Q1 2024 [18] Business Line Data and Key Metrics Changes - Global education billings increased by 13%, driven by modernization initiatives and strong demand in both K-12 and higher education sectors [11] - Health care segment saw a 16% increase in global billings, supported by strong orders converting to billings [12] - Corporate office billings decreased by 7% year-over-year, attributed to timing, but growth is expected for the full year [12][13] Market Data and Key Metrics Changes - In the Americas, net sales grew by 6% with currency neutral orders up 10%, while EAAA experienced a decline in orders by 6% due to a softer macro environment [10][14] - Consolidated currency neutral orders increased by 3% year-over-year, with a strong backlog up 12% [14] Company Strategy and Development Direction - The "One Interface" strategy is focused on building strong global functions, enhancing productivity, expanding margins, and leading in design performance and sustainability [5][6] - A new VP of Global Product Category Management was appointed to optimize the product innovation pipeline [6] - The company is committed to sustainability, aiming to be carbon negative by 2040 and incorporating captured carbon into manufacturing processes [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and regional manufacturing approach, which mitigates tariff impacts [15][22] - The outlook for Q2 2025 is strong, with expectations of net sales between $355 million and $365 million [20] - The company anticipates continued growth driven by strong order momentum and a healthy backlog [20][22] Other Important Information - Capital expenditures for Q1 2025 were $7.5 million, up from $4 million in 2024, reflecting strategic investments in the business [19] - The company is facing tariff impacts on approximately 15% of global product costs, primarily affecting U.S. imports of nora rubber and LVT [15][50] Q&A Session Summary Question: Q1 results were better than expected, can you elaborate on gross margin and SG&A performance? - Management noted strong performance in the Americas and growth across all product categories, contributing to better-than-expected results [24][26] Question: What drove the raised guidance on revenue? - The raised guidance was based on strong Q1 results and positive outlook for Q2, supported by order growth and a strong backlog [29][33] Question: How did EAAA perform compared to the Americas? - EAAA had softer results, but Asia Pacific showed strong double-digit growth, particularly in local currency [36][38] Question: What is the status of the government business segment? - The government business, while small, showed strength in Q1, benefiting from return-to-work mandates despite some staff reductions [41][43] Question: What are the plans for capital allocation given the strong balance sheet? - The primary focus for capital allocation is to invest in the business and execute on those investments to drive growth [46][48] Question: How will the company manage tariff-related costs? - The company plans to offset tariff costs through pricing and productivity measures, with minimal impact expected due to local manufacturing [49][52] Question: What is the outlook on the return to office dynamic? - Management sees ongoing churn in the return to office trend, which presents opportunities for growth as companies modernize their office spaces [67][69]

Investor Presentation | May 2025 Forward Looking Statements and Non-GAAP Measures This presentation contains forward-looking statements, including, in particular, statements about Interface's plans, strategies and prospects. These are based on the Company's current assumptions, expectations and projections about future events. At Interface, we're Made for More Who We Are Although Interface believes that the expectations reflected in these forward-looking statements are reasonable, the Company can give no as ...

[Financial Highlights](index=1&type=section&id=First%20quarter%20highlights) Interface reported a solid start to 2025, with net sales rising 2.6% to $297 million and currency-neutral net sales growing 4.1% year-over-year, driven by strong performance in the Americas and double-digit growth in Healthcare and Education sectors Q1 2025 Key Metrics | Metric | Value | | :--- | :--- | | Net Sales | $297 million | | Currency-Neutral Net Sales Growth | 4.1% YoY | | GAAP Earnings per Diluted Share | $0.22 | | Adjusted Earnings per Diluted Share | $0.25 | - The Americas segment demonstrated strong momentum with a **6% increase in net sales** and a **10% rise in currency-neutral orders**[3](index=3&type=chunk) - Global billings in both the Healthcare and Education sectors grew by **double digits**, highlighting the success of the company's diversification strategy[3](index=3&type=chunk) - The ongoing "One Interface" strategy is credited with accelerating growth, expanding margins, and strengthening the company's market position[4](index=4&type=chunk)[5](index=5&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Results%20Summary) For Q1 2025, GAAP net sales increased 2.6% to $297.4 million, while GAAP net income decreased to $13.0 million, or $0.22 per diluted share, though adjusted net income rose 3.0% to $14.6 million, resulting in adjusted EPS of $0.25, despite an 82 basis point decline in adjusted gross profit margin due to higher manufacturing and freight costs Q1 2025 vs Q1 2024 GAAP Consolidated Results (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $297.4 | $289.7 | 2.6% | | Gross Profit Margin | 37.3% | 38.1% | (80) bps | | Operating Income | $23.2 | $24.4 | (5.0)% | | Net Income | $13.0 | $14.2 | (8.3)% | | Earnings per Diluted Share | $0.22 | $0.24 | (8.3)% | Q1 2025 vs Q1 2024 Non-GAAP Consolidated Results (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Currency-Neutral Net Sales | $301.7 | $289.7 | 4.1% | | Adjusted Gross Profit Margin | 37.7% | 38.6% | (82) bps | | Adjusted Operating Income | $25.5 | $25.5 | (0.3)% | | Adjusted Net Income | $14.6 | $14.2 | 3.0% | | Adjusted Earnings per Diluted Share | $0.25 | $0.24 | 4.2% | - The decline in adjusted gross profit margin was expected and attributed to higher manufacturing costs in the EAAA region and increased freight costs, which were partially offset by higher pricing[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Results%20Summary) The Americas (AMS) segment was a key growth driver, with net sales increasing 5.9% to $179.9 million and currency-neutral orders up 9.8%, while the Europe, Africa, Asia, and Australia (EAAA) segment faced challenges, with net sales declining 2.0% to $117.5 million and currency-neutral orders decreasing by 5.7% due to a softer regional macro environment Americas (AMS) Segment Results - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $179.9 | $169.9 | 5.9% | | Adjusted Operating Income | $19.9 | $18.1 | 9.9% | | Currency-Neutral Orders Increase | 9.8% | - | - | EAAA Segment Results - Q1 2025 vs Q1 2024 (in millions) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $117.5 | $119.8 | (2.0)% | | Adjusted Operating Income | $5.6 | $7.4 | (24.9)% | | Currency-Neutral Orders (Decrease) | (5.7)% | - | - | [Financial Position and Cash Flow](index=2&type=section&id=Financial%20Position%20and%20Cash%20Flow) As of March 30, 2025, Interface maintained a strong balance sheet with $97.8 million in cash and total debt of $302.9 million, resulting in a low net leverage ratio of 1.1x, with cash provided by operating activities at $11.7 million for the quarter and total assets growing to $1.19 billion Key Financial Position Metrics (as of March 30, 2025) | Metric | Value (in millions) | | :--- | :--- | | Cash | $97.8 | | Total Debt | $302.9 | | Net Debt | $205.1 | | **Ratio** | **Value** | | Net Leverage Ratio | 1.1x | Q1 Cash Flow Summary (in millions) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Cash Provided by Operating Activities | $11.7 | $12.6 | | Cash Used in Investing Activities | ($7.5) | ($2.0) | | Cash Used in Financing Activities | ($8.7) | ($29.8) | - Total assets increased to **$1.192 billion** as of March 30, 2025, from **$1.171 billion** at the end of fiscal year 2024[26](index=26&type=chunk) [Business Outlook](index=4&type=section&id=Outlook) Interface issued a strong outlook for the second quarter and an updated forecast for the full fiscal year 2025, anticipating Q2 net sales between $355 million and $365 million, and raising full-year net sales guidance to a range of $1.340 billion to $1.365 billion, with an expected adjusted gross profit margin of 37.2% to 37.4% Q2 Fiscal Year 2025 Outlook | Metric | Forecast | | :--- | :--- | | Net Sales | $355 million to $365 million | | Adjusted Gross Profit Margin | ~37.2% of net sales | | Adjusted SG&A Expenses | ~$90 million | | Adjusted Effective Income Tax Rate | ~27.5% | Full Fiscal Year 2025 Outlook | Metric | Current Outlook | Previous Outlook | | :--- | :--- | :--- | | Net Sales | $1.340B to $1.365B | $1.315B to $1.365B | | Adjusted Gross Profit Margin | 37.2% to 37.4% | 37.2% to 37.4% | | Adjusted SG&A Expenses | ~26% of net sales | ~26% of net sales | | Capital Expenditures | ~$45 million | ~$45 million | [Non-GAAP Financial Measures Reconciliation](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The report provides detailed reconciliations of GAAP to non-GAAP financial measures to offer additional insight into operating results, with key Q1 2025 adjustments including $1.3 million for purchase accounting amortization and $1.0 million for restructuring and other costs, reconciling a GAAP Net Income of $13.0 million to an Adjusted Net Income of $14.6 million, with similar reconciliations for gross profit, operating income, segment results, and EBITDA - The company presents non-GAAP measures such as adjusted EPS, adjusted operating income (AOI), currency-neutral sales, net debt, and adjusted EBITDA to provide useful information to investors by excluding certain items that may not be indicative of core operating performance[15](index=15&type=chunk)[33](index=33&type=chunk) Q1 2025 GAAP to Non-GAAP Reconciliation Summary (in millions) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $111.0 | $1.3 | $112.2 | | Operating Income | $23.2 | $2.2 | $25.5 | | Net Income | $13.0 | $1.6 | $14.6 | - For the last twelve months (LTM) ending March 30, 2025, the company reported **Adjusted EBITDA of $187.2 million**, reconciled from a GAAP Net Income of **$85.8 million**[30](index=30&type=chunk) [Company Information and Safe Harbor](index=5&type=section&id=About%20Interface) Interface, Inc. is a global commercial flooring company and a recognized leader in sustainability, offering an integrated portfolio of carpet tile and resilient flooring products, actively pursuing ambitious climate goals, and qualifying its forward-looking statements with a Safe Harbor statement outlining significant business risks and uncertainties - Interface is a global flooring solutions company offering carpet tile (Interface®), resilient flooring (LVT), rubber flooring (nora®), and premium area rugs (FLOR®)[17](index=17&type=chunk) - The company has a strong focus on sustainability, working to achieve verified science-based carbon reduction targets by **2030** and a goal to be a carbon-negative enterprise by **2040**[18](index=18&type=chunk) - The release contains a Safe Harbor statement warning that forward-looking statements are subject to numerous risks, including market competition, raw material costs, and global economic uncertainty, which could cause actual results to differ materially[21](index=21&type=chunk)[23](index=23&type=chunk)

Group 1 - Interface, Inc. has experienced a slowdown in both top and bottom-line growth in Q4-2024, indicating a potential inflection point for the company [1] - The company's revenue, net income, and earnings per share (EPS) have reached levels that are approximately equal to previous highs, suggesting a plateau in performance [1] Group 2 - The article does not provide any additional insights or data regarding the broader industry context or competitive landscape for commercial flooring companies [1]

Core Insights - Qualcomm's CEO Cristiano Amon emphasizes that artificial intelligence (AI) represents a significant generational change in technology, fundamentally altering human interaction with devices [1][2] - Amon predicts that AI will enable seamless task execution across multiple applications, moving away from the current model of navigating between different apps [2][3] - The integration of AI will extend beyond smartphones to various devices, including automobiles and augmented reality (AR) glasses, creating new computing spaces [4][5][6] AI Interaction and User Experience - Amon highlights that AI's ability to understand human language will transform user interactions, allowing for more intuitive and context-aware assistance [2][3] - The concept of an AI agent will serve as a constant assistant, capable of organizing tasks and providing recommendations without requiring users to switch between apps [3][4] Emerging Technologies - AR glasses are described as "wearable AI," with the potential to provide real-time assistance based on the user's environment [5] - Amon identifies cars as a new computing space where AI can facilitate natural interactions through voice and visual cues [6] On-Device AI Processing - Amon discusses the advantages of "AI at the edge," which includes faster processing, enhanced privacy, and reduced costs compared to cloud-based solutions [7][8] - Qualcomm aims to enable on-device AI experiences through its chips, continuing its legacy of technological innovation [8][9]