Financial Performance - For the three months ended September 30, 2025, the company generated revenues of $2,990,329, a decrease of 81.6% compared to $16,240,865 for the same period in 2024[155]. - For the nine months ended September 30, 2025, the company reported revenues of $7,052,799, down 66.9% from $21,270,891 in 2024[156]. - The net loss from continuing operations for the three months ended September 30, 2025, was $137,122, compared to a net income of $11,119,592 for the same period in 2024[155]. - The net loss from continuing operations for the nine months ended September 30, 2025, was $2,913,181, contrasting with a net income of $6,705,342 in 2024[156]. - Total revenues decreased by $13,250,536, or 81.6%, to $2,990,329 for the three months ended September 30, 2025, compared to $16,240,865 for the same period in 2024[159]. - Total revenues decreased by $14,218,092, or 66.8%, to $7,052,799 for the nine months ended September 30, 2025, from $21,270,891 for the same period in 2024[181]. - Net income attributable to HeartCore Enterprises, Inc. was $434,072 for the three months ended September 30, 2025, a decrease of $10,623,734, or 96.1%, from $11,057,806 in the same period in 2024[176]. - Net income (loss) attributable to HeartCore Enterprises, Inc. common shareholders was a loss of $1,609,851 for the nine months ended September 30, 2025, representing a decrease of $9,383,207, or 120.7%, from a net income of $7,773,356 for the same period in 2024[201]. Expenses - Gross profit decreased by $12,541,707, or 89.5%, to $1,468,409 for the three months ended September 30, 2025, from $14,010,116 in the prior year[161]. - Gross profit decreased by $12,462,942, or 82.7%, to $2,599,064 for the nine months ended September 30, 2025, compared to $15,062,006 for the same period in 2024[184]. - Selling expenses decreased by $67,654, or 41.7%, to $94,718 for the three months ended September 30, 2025, from $162,372 in the prior year[163]. - Selling expenses decreased by $180,012, or 34.7%, to $338,615 for the nine months ended September 30, 2025, from $518,627 for the same period in 2024[186]. - General and administrative expenses decreased by $58,176, or 4.0%, to $1,384,838 for the three months ended September 30, 2025, from $1,443,014 in the same period in 2024[166]. - General and administrative expenses decreased by $682,679, or 14.2%, to $4,119,851 for the nine months ended September 30, 2025, from $4,802,530 for the same period in 2024[188]. - Research and development expenses decreased by $63,709, or 100.0%, to nil for the three months ended September 30, 2025, from $63,709 in the prior year[168]. - Research and development expenses decreased by 100.0% to nil for the nine months ended September 30, 2025, from $172,140 for the same period in 2024[190]. Cash Flow and Financial Position - Total cash and cash equivalents decreased to $2,024,736 as of September 30, 2025, from $2,121,089 at the beginning of the period[202]. - Net cash flows used in operating activities of continuing operations was $2,980,958 for the nine months ended September 30, 2025[203]. - Net cash flows used in operating activities of continuing operations amounted to $3,027,115 for the nine months ended September 30, 2024[204]. - Net cash flows provided by financing activities of continuing operations totaled $1,953,032 for the nine months ended September 30, 2025, mainly from the issuance of Series A convertible preferred shares[206]. - Future minimum principal payments for long-term debts total $510,912 as of September 30, 2025[212]. - Net cash flows used in discontinued operations were $166,736 and $1,080,748 for the nine months ended September 30, 2025 and 2024, respectively[208]. Corporate Actions and Compliance - The company has entered into consulting agreements with 16 companies for their IPO process, with consulting fees ranging from $380,000 to $900,000 per company[135]. - The company sold its software business assets in Japan for a purchase price of ¥1,800,418,650 (approximately $12 million) to Smith Japan Holdings KK[144]. - A one-time distribution of $0.13 per share to stockholders has been authorized, with a record date of November 10, 2025[149]. - The company is currently not in compliance with Nasdaq's minimum bid price requirement of $1.00 per share, with a 180-day period granted to regain compliance[150][151]. - As of September 30, 2025, the company had an accumulated deficit of $17,797,861[156]. - HeartCore Financial, Inc. was formed as a wholly owned subsidiary to support the GO IPO consulting business, and HeartCore Luvina Vietnam Company was established as a 51% owned subsidiary in Vietnam[141]. Investment and Market Activity - Income from discontinued operations, net of income tax, was $488,297 for the three months ended September 30, 2025, a $790,959, or 261.3%, increase from a loss of $302,662 in the prior year[173]. - Income from discontinued operations, net of income tax, increased by $766,013, or 181.3%, to $1,188,481 for the nine months ended September 30, 2025, from $422,468 for the same period in 2024[196]. - A gain of $1,631,700 was recognized on fair value changes in investments in warrants[210]. - The company recognized a loss of $3,970,628 on the sale of warrants to a third party[210]. - Marketable securities and warrants received as noncash consideration totaled $13,541,693 during the period[210]. - The company had no off-balance sheet arrangements as of September 30, 2025[213].

Financial Performance - Revenues for Q3 2025 were $3.0 million, a decrease of 81.5% from $16.2 million in Q3 2024, primarily due to the absence of significant warrant revenue from a large GO IPO deal[5] - Gross profit for Q3 2025 was $1.5 million, down 89.3% from $14.0 million in the same period last year, reflecting reduced gross profit from GO IPO services[5] - Net income for Q3 2025 was $0.4 million, a significant decline from $10.8 million in Q3 2024[8] - Adjusted EBITDA for Q3 2025 was $0.5 million, down from $12.0 million in Q3 2024[9] - For the nine months ended September 30, 2025, revenues were $7.1 million, a decrease of 66.7% from $21.3 million in the same period last year[10] - Gross profit for the nine months ended September 30, 2025, was $2,599,064, down from $15,062,006 in 2024, indicating a decrease of about 82.7%[24] - Net loss attributable to HeartCore Enterprises, Inc. for the nine months ended September 30, 2025, was $(1,609,851), compared to a net income of $7,773,356 in 2024, reflecting a significant shift in performance[24] - Basic and diluted net income (loss) per common share for the nine months ended September 30, 2025, was $(0.07), down from $0.37 in 2024[25] - Income (loss) from continuing operations before income tax expense for the nine months ended September 30, 2025, was $(2,858,295), compared to $6,805,817 in 2024[24] - Other comprehensive loss for the nine months ended September 30, 2025, was $(1,715,032), compared to a comprehensive income of $7,179,488 in 2024[24] - For the nine months ended September 30, 2025, the net loss from continuing operations was $2,913,181 compared to a net income of $6,705,342 in the same period of 2024[27] Operating Expenses - Operating expenses decreased to $1.5 million in Q3 2025, compared to $1.7 million in Q3 2024, due to various cost-cutting measures[7] - Operating expenses for the nine months ended September 30, 2025, decreased to $4.5 million from $5.5 million in the same period last year, driven by reductions in general and administrative costs[11] - Total operating expenses for the nine months ended September 30, 2025, were $4,458,466, a decrease from $5,493,297 in 2024, showing a reduction of approximately 18.8%[24] Cash and Cash Equivalents - Cash and cash equivalents as of September 30, 2025, were $1.5 million, down from $2.0 million at the end of 2024[9] - The cash and cash equivalents at the end of the period were $2,024,736, down from $2,121,089 at the beginning of the period[28] Strategic Changes - The company divested its software business subsidiary, HeartCore Japan, to focus on its Go IPO business, which is expected to enhance long-term profitability[3] - The company signed its 16th Go IPO client and successfully launched one client on the Nasdaq Stock Market[6] Cash Flows - Cash flows from operating activities of continuing operations resulted in a net cash outflow of $2,980,958 for 2025, compared to an outflow of $3,027,115 in 2024[27] - The company reported net proceeds from the sale of warrants amounting to $5,640,000 in 2025[27] - The net cash flows used in financing activities of continuing operations were $1,953,032 in 2025, compared to $(1,168,769) in 2024[28] Depreciation and Amortization - The company incurred depreciation and amortization expenses of $36,994 for the nine months ended September 30, 2025, compared to $532,958 in 2024[27] Other Financial Metrics - The company reported a loss on sale of warrants amounting to $(3,970,628) during the nine months ended September 30, 2024[24] - The company reported a gain on the termination of lease amounting to $(9,059) in 2025[27] - The company reported a loss on disposal of property and equipment of $116,981 for the nine months ended September 30, 2025[27] - Research and development expenses for the nine months ended September 30, 2025, were not reported, while they were $172,140 in 2024, indicating a potential shift in focus or strategy[24]

Financial Performance - Consolidated net sales for fiscal year 2025 decreased 1.0% to $84,234,000 compared to $85,060,000 in fiscal year 2024[4] - ZERUST® oil and gas net sales decreased 20.7% to $7,318,000, while ZERUST® industrial net sales increased 2.4% to $55,171,000[6] - Operating income for fiscal year 2025 decreased 67.3% to $2,570,000 compared to the previous year[6] - Net income attributable to NTIC was $18,000, or $0.00 per diluted share, down from $5,409,000, or $0.55 per diluted share, in fiscal year 2024[12] - Net sales for the three months ended August 31, 2025, were $22.32 million, a decrease of 4.4% compared to $23.35 million in the same period of 2024[25] - Gross profit for the twelve months ended August 31, 2025, was $31.68 million, down 6.6% from $33.79 million in 2024[25] - Operating income for the three months ended August 31, 2025, was $929,372, a decline of 66.5% compared to $2.76 million in the same period of 2024[26] - Net loss attributable to NTIC for the three months ended August 31, 2025, was $1.10 million, compared to net income of $1.84 million in the same period of 2024[26] - Adjusted net loss income attributable to NTIC for the three months ended August 31, 2025, was $(606,998), compared to adjusted net income of $1.94 million in the same period of 2024[30] Profitability and Margins - NTIC's gross profit margin decreased by 210 basis points to 37.6% for the fiscal year 2025[6] - NTIC's effective income tax rate increased to 67.5% for fiscal year 2025 from 17.3% in the prior fiscal year[11] Cash Flow and Liquidity - Cash provided by operating activities was $2,389,000 for the twelve months ended August 31, 2025[6] - Cash and cash equivalents increased to $7.25 million in 2025 from $4.95 million in 2024, an increase of 46.2%[23] Assets and Liabilities - NTIC's working capital decreased to $20,439,000 as of August 31, 2025, from $23,682,000 a year earlier[14] - Total assets increased to $102.75 million in 2025 from $94.68 million in 2024, representing an increase of 8.5%[24] - Total current liabilities rose to $23.90 million in 2025 from $17.90 million in 2024, an increase of 33.4%[24] Research and Development - Research and development expenses for the twelve months ended August 31, 2025, were $5.04 million, up 4.9% from $4.80 million in 2024[26] Dividends - The company declared cash dividends of $0.01 per common share for the three months ended August 31, 2025, down from $0.07 in the same period of 2024[26] Future Outlook - NTIC expects to benefit from strategic investments made over the past three years to support future growth in fiscal 2026[3] - The company aims to flatten operating expenses while expanding gross margins and driving sales in higher-margin parts of its business[3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission file number 001-41775 Capstone Holding Corp. (Exact name of registrant as specified in its charter) FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Delawa ...

Revenue and Sales Performance - Revenue for the third quarter of 2025 was $43.4 million, an increase of $7.7 million or 21.5% compared to $35.7 million in the same quarter of 2024[5] - Battery & Energy Products sales increased 22.8% to $39.9 million, while excluding Electrochem, sales increased 1.9%[6] - Communications Systems sales increased 8.2% to $3.4 million compared to $3.2 million for the same period last year[6] - Backlog at the end of the third quarter was $90.1 million, up from $84.5 million at the end of the second quarter of 2025[5] Profitability and Loss - Gross profit was $9.6 million, representing 22.2% of revenue, down from 24.3% in the third quarter of 2024[7] - Operating loss was $1.0 million, compared to operating income of $0.5 million in the same quarter last year, primarily due to one-time non-recurring costs[9] - Net loss attributable to Ultralife Corporation was $1.2 million, or ($0.07) per share, compared to net income of $0.3 million, or $0.02 per share, for the third quarter of 2024[10] - Ultralife Corporation reported a net loss of $(1,220) million for the three-month period ended September 30, 2025, compared to a net income of $258 million for the same period in 2024[23] - The nine-month period ended September 30, 2025, showed a net income of $1,524 million, a decrease from $6,118 million in the same period of 2024[23] Expenses and Costs - Operating expenses increased to $10.6 million, or 24.4% of revenue, compared to 22.9% of revenue for the same period last year[8] - Interest expense, net, increased to $992 million in the three-month period ended September 30, 2025, compared to $173 million in the prior year[23] - The company incurred severance and other costs for plant closure amounting to $491 million in the latest quarter[23] - Non-cash purchase accounting adjustments were $40 million for the three-month period ended September 30, 2025[23] - Depreciation expense rose to $1,008 million in the latest quarter, up from $765 million in the same quarter of the previous year[23] - Stock-based compensation expense increased to $236 million compared to $170 million in the same period last year[23] - Acquisition and other non-recurring costs for the three-month period were $594 million, up from $250 million in the prior year[23] Adjusted Metrics - Adjusted EBITDA for the third quarter was $2.0 million, or 4.7% of sales, compared to $1.9 million, or 5.4% of sales, for the same period last year[11] - Adjusted EBITDA for the three-month period was $2,048 million, an increase from $1,919 million in the same period last year[23] - Income tax benefit provision for the three-month period was $(504) million, compared to a provision of $74 million in the same period last year[23] - The company recorded a $0.5 million charge related to the closure of its Calgary facility, with expected annual savings of approximately $0.8 million thereafter[2]

Revenue and Income - Fourth quarter revenue increased by 2% to $4.175 billion, while full year revenue remained effectively unchanged at $16.140 billion[10] - Net service revenue (NSR) grew by 8% in the fourth quarter, driven by a 9% increase in the Americas design business, with full year NSR up 6% to $7.573 billion[10] - Operating income for the fourth quarter was $237 million, unchanged year-over-year, while full year operating income increased by 24% to $1.027 billion[10] - AECOM reported revenue of $4.175 billion for the three months ended September 30, 2025, representing a 1.6% increase compared to $4.110 billion for the same period in 2024[31] - Total revenue for the three months ended September 30, 2025, was $4,175.4 million, an increase from $4,110.5 million in the same period of 2024, representing a growth of 1.6%[37] - Net service revenue for the three months ended September 30, 2025, was $1,966.8 million, up from $1,812.1 million in the same period of 2024, indicating a growth of 8.5%[40] - AECOM's adjusted net income attributable to AECOM from continuing operations for the twelve months ended September 30, 2025, was $701.7 million, compared to $616.9 million in the previous year, indicating a 13.7% increase[46] Margins and Backlog - The company achieved a record full year segment adjusted operating margin of 16.5%, exceeding prior long-term guidance five quarters ahead of expectations[10] - Total backlog increased by 4% to $24.830 billion, marking the fifth consecutive quarter of sequential backlog growth[4] - The contracted backlog as of September 30, 2025, was $13,518.6 million, showing a slight increase from $13,335.7 million in 2024[37] Shareholder Returns and Guidance - The company returned nearly $500 million to shareholders through repurchases and dividends, with a 19% increase in the quarterly dividend to $0.31 per share[4] - AECOM initiated fiscal 2026 guidance with expectations for organic NSR growth of 6% to 8%, projecting adjusted EPS between $5.15 and $5.35[16] - For fiscal year 2026, AECOM's GAAP EPS guidance is projected to be between $4.01 and $4.84, while adjusted EPS guidance is expected to be between $5.65 and $5.85[52] Financial Position - As of September 30, 2025, AECOM had $1.6 billion in cash and cash equivalents, $2.7 billion in total debt, and a net leverage ratio of 0.8x[18] - AECOM's total cash and cash equivalents stood at $1.586 billion as of September 30, 2025, slightly up from $1.581 billion a year earlier[34] - The total debt of AECOM, excluding unamortized debt issuance costs, increased to $2.744 billion as of September 30, 2025, compared to $2.540 billion in the previous year[34] - Net debt as of September 30, 2025, was $1,158.0 million, compared to $959.0 million in 2024, reflecting an increase of 20.8%[41] Operational Performance - AECOM's adjusted EBITDA margin was not explicitly stated but is a key metric used to evaluate operational performance[28] - The company's working capital improved to $801.411 million as of September 30, 2025, up from $681.678 million a year prior[34] - AECOM's adjusted EBITDA for the twelve months ended September 30, 2025, was $1,245.9 million, compared to $1,130.7 million for the previous year, reflecting a 10.2% increase[50] Costs and Expenses - The company experienced a 225.3% increase in restructuring and acquisition costs for the three months ended September 30, 2025, totaling $59.355 million compared to $18.248 million in the same period last year[31] - General and administrative expenses for the three months ended September 30, 2025, totaled $39.2 million, a decrease from $43.5 million in the same period of 2024[37] - The company incurred restructuring and acquisition costs of $59.4 million for the three months ended September 30, 2025, compared to $18.3 million in the same period of 2024[44] Tax and Interest - The effective tax rate was 28.1% in the fourth quarter and 22.3% for the full year, with an adjusted effective tax rate of 29.0% and 24.3%, respectively[19] - The adjusted income tax expense for continuing operations for the twelve months ended September 30, 2025, was $225.0 million, compared to $203.0 million in the previous year[44] - AECOM anticipates a GAAP interest expense of $175 million for fiscal year 2026, with adjusted net interest expense guidance set at $135 million[54] Segment Performance - AECOM's adjusted segment income from operations for the Americas segment was $244.1 million for the three months ended September 30, 2025, compared to $241.3 million for the previous quarter, reflecting a 0.3% increase[50] - The international segment reported an adjusted segment income from operations of $92.7 million for the three months ended September 30, 2025, consistent with the previous quarter[50] - The Americas segment's income from operations for the twelve months ended September 30, 2025, was $897.8 million, up from $774.6 million in the previous year, indicating a 15.8% increase[50]

Financial Performance - Fourth quarter net sales reached $648.2 million, an increase of 16.6% year-over-year, driven by a 19.2% increase in volume[7] - Fiscal year 2025 net sales totaled $2,316.6 million, up 16.1% year-over-year, with a 14.7% increase in volume[17] - The company expects fiscal year 2026 net sales to range between $2.41 billion and $2.49 billion, representing a growth of 4% to 8%[28] - BellRing's net sales for the three months ended September 30, 2025, were $648.2 million, a 16.6% increase from $555.8 million in the same period of 2024[40] - For the twelve months ended September 30, 2025, net sales reached $2,316.6 million, up 16.1% from $1,996.2 million in 2024[40] Adjusted EBITDA and Profitability - Adjusted EBITDA for the fourth quarter was $117.4 million, a slight increase of 0.8% compared to the prior year[16] - Fiscal year 2026 Adjusted EBITDA is projected to be between $425 million and $455 million, with an Adjusted EBITDA margin of approximately 18%[28] - Adjusted EBITDA as a percentage of net sales is projected to be between 18% to 20% for fiscal year 2026[34] - Adjusted EBITDA for the three months ended September 30, 2025, was $117.4 million, compared to $116.5 million for the same period in 2024, reflecting a slight increase[57] Earnings and Profit Margins - The company reported a net earnings of $59.6 million for the three months ended September 30, 2025, compared to $71.7 million in the same period of 2024, reflecting a decrease of 16.5%[40] - BellRing's gross profit for the three months ended September 30, 2025, was $187.4 million, down from $205.1 million in the same period of 2024[40] - Adjusted Gross Profit as a percentage of Net Sales for the three months ended September 30, 2025, was 29.7%, compared to 35.9% in 2024, showing a decline in profitability margin[51] - Net Earnings for the three months ended September 30, 2025, were $59.6 million, down from $71.7 million in 2024, representing a decrease of about 16.5%[53] - Adjusted Net Earnings for the twelve months ended September 30, 2025, were $279.1 million, compared to $255.5 million in 2024, reflecting an increase of approximately 9.2%[53] Expenses and Share Repurchase - SG&A expenses for fiscal year 2025 were $396.0 million, or 17.1% of net sales, reflecting an increase due to higher marketing and legal provisions[20] - The company repurchased 9.0 million shares for $472.5 million during fiscal year 2025, with an average price of $52.62 per share[26] - Interest expense, net for the three months ended September 30, 2025, was $19.1 million, compared to $14.5 million in 2024, reflecting an increase of approximately 31.7%[57] Assets and Debt - Total assets increased to $941.0 million as of September 30, 2025, compared to $837.0 million in 2024[42] - BellRing's long-term debt rose to $1,084.3 million as of September 30, 2025, compared to $833.1 million in 2024[42] Future Outlook - The long-term financial algorithm has been updated to reflect attractive revenue growth and increased brand investment for 2026[5] - The company aims for annual net sales growth of 7% to 9%[34] - The company has a strong reliance on sales from its ready-to-drink (RTD) protein shakes, which poses a risk to its market position[36]

Financial Performance - Net sales for fiscal year 2025 increased by 2.3% to $2,952.7 million, with fourth quarter net sales rising 3.4% to $832.8 million[5][3] - Reported EPS for fiscal year 2025 was $3.32, with adjusted EPS increasing by 6% to $3.52[3][13] - Adjusted EBITDA for fiscal year 2025 reached $623.6 million, compared to $612.4 million in the prior year[13] - Gross margin for fiscal year 2025 was reported at 41.7%, up from 38.3% in the prior year, while adjusted gross margin was consistent at 40.9%[7][9] - Net sales for the quarter ended September 30, 2025, were $832.8 million, an increase of 3.9% compared to $805.7 million for the same period in 2024[28] - Gross profit for the twelve months ended September 30, 2025, was $1,232.7 million, up from $1,104.3 million in 2024, reflecting a significant improvement in profitability[28] - Net earnings for the quarter ended September 30, 2025, were $34.9 million, a decrease of 26.5% from $47.6 million in the same quarter of 2024[28] - Basic net earnings per share for the twelve months ended September 30, 2025, were $3.37, compared to $0.53 in 2024, indicating a strong year-over-year performance[28] - Net earnings for the year ended September 30, 2025, were $239.0 million, a significant increase from $38.1 million in 2024[35] - Total net sales for the twelve months ended September 30, 2025, reached $2,952.7 million, up from $2,887.0 million in 2024, representing a growth of approximately 2.3%[48] Expenses and Costs - SG&A expenses for fiscal year 2025 were $495.5 million, or 16.8% of net sales, compared to 16.4% in the prior year[11] - Advertising and promotion expenses for the twelve months ended September 30, 2025, were $151.7 million, up from $143.7 million in 2024, reflecting increased marketing efforts[28] - The company incurred restructuring and related costs of $20.3 million in Q1'25, contributing to a total of $68.7 million for the fiscal year[67] - Restructuring and related costs are estimated at $49 million for the full fiscal year, impacting EPS by $0.70[69] - Acquisition and integration costs for Fiscal 2026 are projected to total $8 million, affecting EPS by $0.12[69] Cash Flow and Debt - Operating cash flow for fiscal year 2025 was $147.1 million, with free cash flow at $63.2 million, representing 2.1% of net sales[19] - Cash flow from operating activities for the year was $147.1 million, a decrease from $429.6 million in 2024[35] - Free cash flow for the year was defined as net cash provided by operating activities reduced by capital expenditures, net of proceeds from asset sales[45] - Net debt as of September 30, 2025, was $3,195.5 million, an increase from $2,990.8 million on September 30, 2024[67] - Long-term debt rose to $3,407.9 million as of September 30, 2025, compared to $3,193.0 million in 2024, indicating increased leverage[33] Future Outlook - The company expects organic net sales for fiscal 2026 to be flat to slightly up, with adjusted EPS projected between $3.30 and $3.60[18] - For the first quarter of fiscal 2026, the company anticipates organic net sales to decline in the high-single digits and adjusted EPS in the range of $0.20 to $0.30[20] - The fiscal 2026 outlook anticipates continued growth in net sales and profitability, with strategic investments in new product development and market expansion[68] - Fiscal 2026 adjusted net earnings are projected to be between $231 million and $254 million, with adjusted EPS ranging from $3.30 to $3.60[69] - Adjusted EBITDA for Fiscal 2026 is expected to be between $580 million and $610 million[69] Shareholder Actions - The company repurchased 4.0 million shares of common stock during fiscal 2025 at an average price of $22.42 per share[19] - Total shareholders' equity increased to $169.9 million as of September 30, 2025, from $135.8 million in 2024, indicating a strengthening balance sheet[33] Segment Performance - Segment profit for Batteries & Lights decreased to $542.2 million in 2025 from $554.8 million in 2024, while Auto Care segment profit increased to $105.6 million from $94.1 million[48] - Organic net sales growth for Auto Care was negative 1.2% for FY '25, with total net sales of $620.0 million[63] - Segment profit for Batteries & Lights in Q4'25 was $151.8 million, a decrease of 15.4% year-over-year[63] - The company reported a total segment profit of $647.8 million for FY '25, a slight decrease of 0.2% from the prior year[63] Miscellaneous - The company completed the Advanced Power Solutions acquisition on May 2, 2025, which will transition to legacy brands by December 31, 2025[41] - The company recorded a non-cash impairment of intangible assets of $5.9 million for the quarter ended September 30, 2025, related to proprietary formulas[29] - The effect of exchange rate changes resulted in a net decrease of $0.5 million on cash, cash equivalents, and restricted cash[35] - The company experienced a loss on extinguishment/modification of debt of $6.8 million for the quarter ended September 30, 2025, due to the redemption of $300.0 million Senior Notes[30] - The loss on extinguishment of debt is projected to be $2 million for the full fiscal year, impacting EPS by $0.03[69]

Financial Performance - Q2 revenue reached $9.0 billion, a 6.6% increase as reported and 5.5% organic growth, exceeding guidance midpoint by 75 basis points [2] - GAAP diluted EPS was $1.07, an 8% increase, while non-GAAP diluted EPS was $1.36, also an 8% increase, both above guidance [2] - Total reported revenue for the second quarter was $8,961 million, representing a growth of 6.6% compared to $8,403 million in the previous year [25] - Total reported net sales for the second quarter reached $8,961 million, an increase of 6.6% compared to $8,403 million in the same period last year [42] - Operating profit for the second quarter was $1,686 million, representing an increase of 5.7% from $1,595 million in the prior year [42] - Net income attributable to Medtronic was $1,374 million, up from $1,270 million, marking a growth of 8.2% [42] - Basic earnings per share (EPS) for the quarter was $1.07, compared to $0.99 in the same quarter last year, reflecting an increase of 8.1% [42] - The total reportable segments showed a year-to-date growth of 9.4%, with total sales of $8,733 million compared to $7,983 million last year [36] - Net income for the six months ended October 24, 2025, was $2,428 million, an increase of 4.3% compared to $2,327 million for the same period in 2024 [67] Segment Performance - Cardiac Ablation Solutions revenue surged 71%, with a remarkable 128% growth in the U.S., driven by the pulsed field ablation (PFA) portfolio [4] - Cardiovascular Portfolio revenue was $3.436 billion, a 10.8% increase as reported and 9.3% organic growth [9] - Neuroscience Portfolio revenue reached $2.562 billion, a 4.5% increase reported and 3.9% organic [9] - Medical Surgical Portfolio revenue was $2.171 billion, a 2.1% increase reported and 1.3% organic [9] - Cardiovascular segment revenue reached $3,436 million, a 10.8% increase from $3,102 million year-over-year [25] - Cardiac Rhythm & Heart Failure segment saw a revenue increase of 15.7%, totaling $1,825 million compared to $1,578 million in the same quarter last year [25] - Neuroscience segment revenue grew by 4.5% to $2,562 million, up from $2,451 million year-over-year [25] - The Diabetes segment revenue increased by 10.3% to $757 million from $686 million year-over-year [25] - Specialty Therapies segment experienced a slight decline of 0.9%, with revenue at $744 million compared to $737 million last year [25] Guidance and Future Outlook - The company raised FY26 organic revenue growth guidance to approximately 5.5%, up from 5.0% [10] - FY26 diluted non-GAAP EPS guidance was increased to a range of $5.62 to $5.66, reflecting a potential growth of approximately 4.5% [10] - The company continues to focus on expanding its market presence and developing new technologies across various segments [25] - The company is focusing on expanding its Cardiovascular and Diabetes segments, with ongoing investments in new product development and market expansion strategies [36] Regulatory and Product Approvals - The company received favorable National Coverage Determination from CMS for the Symplicity™ procedure, addressing a U.S. market of 18 million people [4] - The Altaviva™ device received U.S. FDA approval, targeting over 16 million people in the U.S. suffering from urge urinary incontinence [4] Cash Flow and Expenses - Medtronic incurred $91 million in accelerated amortization on certain intangible assets within the Cardiovascular Portfolio [53] - The company recognized incremental costs of $39 million related to compliance with new EU medical device regulations, considered one-time costs [56] - Research and development expenses totaled $754 million, up from $697 million, indicating a growth of 8.2% [42] - Net cash provided by operating activities was $2,013 million, up from $1,944 million year-over-year [67] - Net cash used in investing activities rose to $1,201 million, compared to $604 million in the previous year, indicating a significant increase in investment outflows [67] - Dividends to shareholders increased slightly to $1,820 million from $1,795 million, showing a modest growth in shareholder returns [67] - Cash and cash equivalents at the end of the period were $1,282 million, a decrease from $1,394 million at the end of the previous year [67] - Cash paid for income taxes was $1,394 million, up from $1,335 million, reflecting an increase in tax obligations [67] - Interest payments increased to $542 million from $513 million, indicating a rise in financing costs [67]

Financial Performance - Record net income of $5.6 million for the third quarter of 2025, a significant turnaround from previous losses[1] - Total revenue for Q3 2025 was $4.36 million, showing consistency with prior quarters despite minor fluctuations[11] - Operations expenses increased to $3.54 million in Q3 2025, up from $2.85 million in Q2 2025[11] - A one-time gain of $13.4 million was recorded from asset sales related to the funding and farmout agreements[16] Balance Sheet Improvement - The company retired all $41 million of senior and seller debt, significantly improving its balance sheet[1][17] - Shareholder equity increased by $22.7 million, driven by the retirement of preferred shares and gains from funding transactions[1][17] Drilling and Production Plans - The company expects to drill up to 90 horizontal wells at a cost of $3.5 million to $4.0 million per well, with initial production rates of 300 to 500 barrels of oil per day[7] - Cumulative capital investment by Virtus and LHO is projected to exceed $300 million over the life of the horizontal drilling project[7] - The company anticipates an annual horizontal drilling program of 10 to 20 new wells per year, with gross oil production expected to exceed 20,000 barrels of oil per day[7] Reserves Information - The Grayburg-Jackson Field is estimated to have proven reserves of approximately 14.0 million barrels of oil and 2.8 billion cubic feet of natural gas[18]