Financial Performance - Net sales for the three months ended May 4, 2025, increased to $1,911 million, up 9.8% from $1,741 million for the same period in 2024[18] - Gross profit for the same period was $510 million, representing a gross margin of 26.7%, compared to $468 million and a gross margin of 26.9% in the prior year[18] - Net income attributable to Core & Main, Inc. for the three months ended May 4, 2025, was $100 million, an increase of 5.3% from $95 million in the prior year[18] - Basic earnings per share (EPS) increased to $0.53, up from $0.49 in the same period last year, while diluted EPS also rose to $0.52 from $0.49[18] - Operating income for the three months ended May 4, 2025, was $171 million, slightly up from $168 million in the same period last year[18] - Adjusted EBITDA for the three months ended May 4, 2025, increased by $7 million, or 3.2%, to $224 million compared to $217 million for the same period in 2024[118] Assets and Liabilities - Total assets as of May 4, 2025, were $6,278 million, an increase from $5,870 million as of February 2, 2025[16] - Total liabilities increased to $4,457 million as of May 4, 2025, compared to $4,096 million as of February 2, 2025[16] - Retained earnings rose to $515 million as of May 4, 2025, up from $449 million as of February 2, 2025[16] - Total debt as of May 4, 2025, was $2,284 million, with current maturities of long-term debt totaling $24 million[55] - The company reported an increase in accounts payable by $361 million, compared to an increase of $244 million in the prior year[25] Cash Flow and Investments - Cash flows from operating activities provided $77 million, slightly down from $78 million in the same period last year[25] - Net cash provided by operating activities was $77 million for the three months ended May 4, 2025, a decrease of $1 million compared to $78 million for the same period in 2024[129] - Net cash used in investing activities decreased significantly by $558 million to $16 million for the three months ended May 4, 2025, primarily due to $564 million in cash outflows for acquisitions in fiscal 2024[130] - Net cash used in financing activities was $61 million for the three months ended May 4, 2025, compared to net cash provided of $525 million for the same period in 2024, reflecting a $586 million change[131] Shareholder Activities - The company repurchased 837,268 shares of Class A common stock for a total of $39 million during the three months ended May 4, 2025, with $285 million remaining under the authorized repurchase program[29] - The company completed $39 million of Class A common stock repurchases during the three months ended May 4, 2025[126] - The maximum number of shares that may yet be purchased under the repurchase program is $285 million[159] Tax and Compliance - The effective tax rate for the three months ended May 4, 2025, was 25.5%, an increase from 24.6% in the prior year[67] - The provision for income taxes increased by $3 million, or 9.1%, to $36 million, with an effective tax rate of 25.5% for the three months ended May 4, 2025[113] - The Company was in compliance with all debt covenants as of May 4, 2025[59] Acquisitions and Intangible Assets - The company did not complete any acquisitions during the three months ended May 4, 2025, following significant acquisitions totaling $585 million in the previous fiscal year[39] - The company closed acquisitions during the fiscal year ended February 2, 2025, with an aggregate transaction value of $769 million[94] - The company’s intangible assets acquired during the Fiscal 2024 Acquisitions included $219 million related to customer relationships and $282 million in goodwill[44] - Total intangible assets as of May 4, 2025, amounted to $1,811 million, with net intangible assets of $901 million[53] Market and Economic Conditions - The Infrastructure Investment and Jobs Act includes $55 billion for water infrastructure investment, which may positively impact the Company's business[87] - The company experienced price stability in fiscal 2023 compared to price inflation in fiscal 2022, with improvements in supply chain conditions[90] - The company is exposed to price fluctuations in the cost of procuring products, which may affect gross profit margins[148] - As of May 4, 2025, foreign currency operations were not material, with a hypothetical 10% change in the U.S. dollar's value not materially impacting net earnings[149] Risk and Legal Matters - The company is not currently party to any material legal proceedings, although it faces inherent risks related to product liability claims[154] - The company maintains provisions for potential credit losses, which have historically been within expectations[147]

Financial Performance - Net sales increased by 9.8% to $1,911 million compared to $1,741 million in the prior year[6] - Gross profit rose by 9.0% to $510 million, with a gross profit margin of 26.7%[6] - Net income increased by 4.0% to $105 million, with diluted earnings per share rising by 6.1% to $0.52[6] - Adjusted EBITDA increased by 3.2% to $224 million, reflecting higher gross profit partially offset by increased SG&A expenses[13] - Net sales for the three months ended May 4, 2025, reached $1,911 million, a 9.8% increase from $1,741 million in the same period last year[29] - Gross profit increased to $510 million, up from $468 million, reflecting a gross margin improvement[29] - Net income attributable to Core & Main, Inc. was $100 million, compared to $95 million, representing a 5.3% year-over-year growth[29] - Adjusted EBITDA for the three months ended May 4, 2025, was $224 million, an increase from $217 million in the prior year[40] - Operating income for the quarter was $171 million, slightly up from $168 million in the same quarter last year[29] - Basic earnings per share (EPS) increased to $0.53 from $0.49, while diluted EPS rose to $0.52 from $0.49[29] Expenses and Cash Flow - SG&A expenses rose by 14.0% to $293 million, representing 15.3% of net sales[9] - Operating cash flow was $77 million, slightly down from $78 million in the prior year[14] - The company incurred capital expenditures of $13 million during the quarter, compared to $7 million in the same period last year[33] Debt and Assets - Net debt decreased to $2,276 million from $2,419 million year-over-year[15] - The company reported a net debt of $2,276 million as of May 4, 2025, down from $2,419 million a year earlier[42] - Total current assets increased to $2,444 million, compared to $2,025 million at the end of the previous quarter[31] - Cash and cash equivalents remained stable at $8 million, consistent with the previous quarter[31] Outlook and Strategic Focus - The company reaffirmed its full-year outlook for net sales between $7,600 million and $7,800 million, with expected net sales growth of 2% to 5%[21] - Adjusted EBITDA for the full year is projected to be between $950 million and $1,000 million, with an adjusted EBITDA margin of 12.5% to 12.8%[21] - The company continues to focus on addressing aging water infrastructure needs across the U.S. and adapting to macroeconomic changes[5]

Financial Performance - Net sales for Q4 2025 were $2.1 billion, a decrease of $61.9 million, or 3% compared to Q4 2024[4] - For the fiscal year 2025, net sales were $8.7 billion, an increase of 7%, while net sales excluding acquisitions and divestitures were flat[4] - Adjusted earnings per share for Q4 2025 were $2.31, a decrease of 13% from $2.66 in Q4 2024[4] - The company reported a net loss per diluted share of $6.85 for Q4 2025, compared to a profit of $2.30 in Q4 2024[5] - Total net sales for the year ended April 30, 2025, increased to $8,726.1 million, up from $8,178.7 million in 2024, representing a growth of 6.7%[31] - The company reported a net loss of $729.0 million for the three months ended April 30, 2025, compared to a net income of $245.1 million in the same period of 2024[30] - The company reported a net loss of $729.0 million for the three months ended April 30, 2025, compared to a net income of $245.1 million in the same period of 2024[43] Cash Flow and Dividends - Free cash flow for the fiscal year 2025 was $816.6 million, with Q4 free cash flow at $298.9 million[4] - The company expects free cash flow of approximately $875.0 million for fiscal year 2026[13] - The company declared dividends of $1.08 per common share for the three months ended April 30, 2025, a 2% increase from $1.06 in the same period of 2024[25] - The company reported a net cash provided by operating activities of $393.9 million for the three months ended April 30, 2025, compared to $428.1 million in 2024[30] - The company expects net cash provided by operating activities for the year ending April 30, 2026, to be $1,200.0 million[51] Segment Performance - U.S. Retail Coffee segment net sales increased by 11% to $738.6 million, driven by higher net pricing[14] - U.S. Retail Pet Foods segment net sales decreased by 13% to $395.5 million, primarily due to lower contract manufacturing sales[16] - Sweet Baked Snacks segment net sales decreased by 26% to $251.0 million, reflecting a significant decline in volume/mix[18] - U.S. Retail Coffee segment reported net sales of $738.6 million for the three months ended April 30, 2025, compared to $666.1 million in 2024, reflecting a growth of 10.8%[35] - The U.S. Retail Pet Foods segment saw a decline in net sales to $395.5 million for the three months ended April 30, 2025, down from $452.6 million in 2024, a decrease of 12.6%[35] Impairment and Expenses - Goodwill impairment charges amounted to $867.3 million for the three months ended April 30, 2025, with total impairment charges for the year reaching $1,661.6 million[25] - The company incurred goodwill impairment charges of $867.3 million for the three months ended April 30, 2025[43] - Selling, distribution, and administrative expenses for the three months ended April 30, 2025, were $380.6 million, accounting for 17.8% of net sales, compared to 19.3% in 2024[31] - Interest expense for the year ended April 30, 2025, increased by 47% to $388.7 million from $264.3 million in 2024[25] Profitability Metrics - Gross profit for the year ended April 30, 2025, was $3,384.7 million, reflecting a 9% increase from $3,115.4 million in 2024[25] - The gross margin for the year ended April 30, 2025, was 38.8%, compared to 38.1% in 2024[25] - Gross profit for the three months ended April 30, 2025, was $823.3 million, down from $913.3 million in 2024, representing a gross margin of 37.5%[43] - Adjusted operating income for the year ended April 30, 2025, was $1,824.7 million, which is 20.9% of net sales, compared to $1,636.2 million or 20.0% in 2024[43] - EBITDA (as adjusted) for the year ended April 30, 2025, was $2,137.0 million, representing 24.5% of net sales, compared to $1,704.4 million or 20.8% in 2024[47] Future Outlook - The fiscal year 2026 outlook projects net sales growth of 2.0% to 4.0% and adjusted earnings per share between $8.50 and $9.50[12] - Adjusted earnings per share for the year ending April 30, 2026, are projected to be between $8.50 and $9.50[49]

Financial Performance - Net sales increased by 7.5% to $8.1 billion compared to the same period last year, driven by a 4% increase in wholesale unit volumes [5]. - Adjusted EBITDA rose by 20.8% to $157 million, reflecting a steady margin improvement and increased free cash flow [8]. - Free cash flow improved significantly to $119 million, up 142.9% from $49 million in the prior year quarter [16]. - The net loss for the quarter was $(7) million, a significant improvement from a net loss of $(21) million in the same quarter last year [14]. - Adjusted earnings per diluted share (Adjusted EPS) increased to $0.44, compared to $0.10 in the prior year quarter, marking a 340% increase [8]. - Gross profit for the quarter was $1.1 billion, an increase of $62 million or 6.1% compared to the same quarter last year [10]. - The net loss attributable to United Natural Foods, Inc. for the 39-week period ended May 3, 2025, was $31 million, compared to a net loss of $75 million for the same period in 2024 [28]. - Adjusted EBITDA for the 39-week period ended May 3, 2025, increased to $436 million, up from $375 million in the prior year, reflecting a growth of 16.3% [33]. - Adjusted net income for the 39-week period ended May 3, 2025, was $50 million, compared to $8 million in the same period of 2024, representing a substantial increase [38]. Cash Flow and Liquidity - Free cash flow for the 39-week period ended May 3, 2025, was $310 million, significantly higher than $54 million for the same period in 2024 [31]. - The company maintained total liquidity of approximately $1.49 billion, consisting of $52 million in cash and $1.44 billion in unused capacity under its asset-based lending facility [16]. - Free cash flow for the 13-week period ended May 3, 2025, was $119 million, significantly higher than $49 million for the same period in 2024 [42]. Debt and Capital Structure - The net debt to Adjusted EBITDA ratio declined to 3.3x, the lowest in the past two fiscal years [8]. - The company reported a net carrying value of debt and finance lease liabilities of $1,928 million, with an adjusted EBITDA leverage ratio of 3.3x [40]. - The net debt to Adjusted EBITDA leverage ratio will be calculated based on the trailing four quarters Adjusted EBITDA, providing insights into the company's capital structure [26]. Expenses and Capital Expenditures - Operating expenses decreased as a percentage of net sales to 12.7%, down from 13.2% in the prior year quarter, due to higher sales and cost-saving initiatives [11]. - Capital expenditures for the 39-week period ended May 3, 2025, were $157 million, a decrease from $217 million in the same period last year [31]. - Payments for capital expenditures for the 39-week period ended May 3, 2025, totaled $157 million, down from $217 million in the prior year [43]. - The company incurred $54 million in restructuring, acquisition, and integration-related expenses over the trailing four quarters [41]. Tax and Impairment - The U.S. GAAP effective tax rate for fiscal 2025 is estimated at 32%, while the adjusted effective tax rate is projected to be 20% [44]. - The company recognized a $24 million non-cash asset impairment charge related to a distribution center in fiscal 2025 [35]. Outlook - The full-year outlook for net sales remains unchanged at $31.3 - $31.7 billion, while the net loss and EPS outlook has been updated to reflect costs associated with exiting a customer contract [17].

Revenue and Sales Performance - Total revenues increased by approximately 7% to $148,182,000 for fiscal 2025 compared to $138,610,000 for fiscal 2024[255] - Foodservice sales from the Branded Product Program increased by approximately 6% to $91,828,000 for fiscal 2025, with a 1.2% increase in the total volume of hot dogs sold[257] - Average selling prices in the Branded Product Program increased by approximately 5% compared to fiscal 2024[257] - Total Company-owned restaurant sales increased by approximately 5% to $12,714,000 during fiscal 2025 compared to $12,103,000 during fiscal 2024[258] - License royalties increased by approximately 11% to $37,418,000 in fiscal 2025 compared to $33,581,000 in fiscal 2024[259] - Royalties earned on sales of hot dogs from the license agreement with Smithfield Foods, Inc. increased to $33,589,000 for fiscal 2025, reflecting an 11% increase in retail volume[259] - Franchise restaurant sales declined to $66,905,000 in fiscal 2025 from $68,417,000 in fiscal 2024, with comparable domestic franchise sales at $51,250,000 in fiscal 2025 compared to $53,108,000 in fiscal 2024[260] Costs and Expenses - Overall cost of sales increased by approximately 8% to $89,707,000 in fiscal 2025 from $83,182,000 in fiscal 2024, with gross profit at $14,835,000 or 14% of sales in fiscal 2025 compared to $15,410,000 or 16% of sales in fiscal 2024[263] - Cost of sales in the Branded Product Program increased by 9% to $82,462,000 in fiscal 2025, primarily due to a 1.2% increase in hot dog sales volume and a 7% increase in average cost per pound[264] - General and administrative expenses decreased by $1,082,000 to $14,530,000 in fiscal 2025 from $15,612,000 in fiscal 2024, attributed to lower professional fees and a cash bonus payout in fiscal 2024[267] Net Income and Financial Position - Net income for fiscal 2025 was $24,026,000, an increase from $19,616,000 in fiscal 2024, with EBITDA rising to $37,824,000 from $33,941,000[283] - Cash and cash equivalents increased by $6,775,000 to $27,802,000 at March 30, 2025, compared to $21,027,000 at March 31, 2024[285] - The effective income tax rate for fiscal 2025 was 26.7%, down from 28.5% in fiscal 2024, reflecting income tax expense of $8,735,000 on $32,761,000 of pre-tax income[275] Debt and Financing - The Company entered into a five-year unsecured Credit Agreement and borrowed $60,000,000 to refinance its outstanding Senior Secured Notes due 2025[235] - During fiscal 2025, the company made a voluntary principal prepayment of $8,000,000 on its Term Loan borrowings under the Credit Agreement[271] - The Company borrowed $60,000,000 in Term Loan borrowings to refinance and redeem its 2025 Notes, incurring $431,000 in debt issuance costs[292] - During fiscal 2025, the Company made mandatory principal repayments of $1,200,000 and a voluntary principal repayment of $8,000,000 on its Term Loan[292] - A hypothetical 100 bps increase in the interest rate on the $50,800,000 of outstanding unsecured Term Loan borrowings would lead to an increase of approximately $508,000 in cash interest costs over the next twelve months[315] - The Company expects to make cash interest payments of approximately $2,895,000 on the Term Loan borrowings during the fiscal year ended March 29, 2026[302] Dividends and Share Repurchase - The Company declared and paid four quarterly dividends of $0.50 per share, totaling $8,172,000 during fiscal 2025[297] - As of March 30, 2025, the Company had cash and cash equivalents of $27,802,000, with potential future cash dividend requirements of approximately $8,179,000 for fiscal 2026[299] - The Company has repurchased 1,101,884 shares at a cost of approximately $39,000,000 under its stock repurchase plan, with 98,116 shares remaining to be repurchased[296] Market Conditions and Future Outlook - The Company anticipates continued inflationary pressures on commodity prices and labor during fiscal 2026, impacting future results[233] - Inflationary pressures and rising commodity prices, particularly for beef, are expected to continue impacting the Company's results into fiscal 2026[308] - The average cost of hot dogs during fiscal 2025 was approximately 7% higher than in fiscal 2024, reflecting inflationary pressures on commodity prices[308] - The Company has not entered into hedging arrangements for commodity price fluctuations, exposing it to market changes in commodity prices[318] - The primary focus is to expand market penetration of the Nathan's Famous brand across all business platforms, with growth driven by Licensing and Branded Product Programs[241]

Financial Performance - Revenues for fiscal 2025 were $148,182,000, an increase of 6% compared to $138,610,000 for fiscal 2024[5] - Net income for fiscal 2025 was $24,026,000, representing a 22.4% increase from $19,616,000 in fiscal 2024[5] - Adjusted EBITDA for fiscal 2025 was $39,206,000, up 12.7% from $34,843,000 in fiscal 2024[5] - Income from operations for fiscal 2025 was $36,497,000, an increase of 12.2% from $32,506,000 in fiscal 2024[5] Revenue Sources - License royalties increased to $37,418,000 in fiscal 2025, a rise of 11% from $33,581,000 in fiscal 2024[7] - Sales from the Branded Product Program rose by $5,339,000 to $91,828,000 in fiscal 2025, a 6.2% increase compared to fiscal 2024[7] Dividends and Shareholder Returns - The Company declared a quarterly cash dividend of $0.50 per share, payable on July 1, 2025[3] Market Expansion - Twenty-five franchised locations opened during fiscal 2025, contributing to market expansion efforts[7] Pricing Trends - Average selling price of hot dogs increased by approximately 5% compared to the prior year period[7] Franchise Income - Total franchise fee income was $381,000 in fiscal 2025, down from $470,000 in fiscal 2024[7]

Exhibit 10.1 LINE OF CREDIT AGREEMENT THIS LINE OF CREDIT AGREEMENT ("Agreement") is made and entered into effective as of the 5th day of June, 2025 (the "Effective Date") by and among Corps Capital Advisors, LLC, a Texas Limited Liability Company (the "Lender") and Brand Engagement Network, Inc., a Delaware Corporation. ("Borrower"). Lender and Borrower may be referred to herein as a Party, or, collectively, as the Parties. "Line of Credit Documents" shall refer to this Agreement and any other documents ne ...

ARTICLE I DEFINITIONS Unless the context clearly indicates otherwise, certain terms used in this Agreement shall have the meanings set forth below: "Business Day" shall mean any day of the week other than Saturday, Sunday or other day that is recognized as a holiday in the United States of America. "Default" shall mean the occurrence and continuance of any of the events listed in Sections 6.1 or 6.2 of this Agreement. Exhibit 10.1 LINE OF CREDIT AGREEMENT THIS LINE OF CREDIT AGREEMENT ("Agreement") is made ...

Revenue Performance - Revenue increased to $1.483 billion for the year ended April 30, 2025, up 17% from $1.267 billion in 2024 and 39% from $1.069 billion in 2023[301] - Subscription revenue accounted for 93% of total revenue for the years ended April 30, 2025 and 2024[297] - Total revenue for the year ended April 30, 2025, was $1,483.3 million, up from $1,267.3 million in 2024, representing a 17% increase[334] Customer Growth - As of April 30, 2025, the number of customers increased to approximately 21,500, compared to 21,000 as of April 30, 2024[298] - The number of customers with annual contract value over $100,000 increased to over 1,510 as of April 30, 2025, up from over 1,330 in 2024[299] Elastic Cloud Contribution - Elastic Cloud contributed 46% of total revenue for the year ended April 30, 2025, compared to 43% in 2024[314] - Subscription revenue for the year ended April 30, 2025, increased by $207.9 million, or 18%, compared to the prior year, driven by a 26% growth in Elastic Cloud, which accounted for 46% of total revenue[334] Financial Performance - Net cash provided by operating activities was $266.2 million for the year ended April 30, 2025, up from $148.8 million in 2024[302] - The company incurred a net loss of $108.1 million for the year ended April 30, 2025, following a net income of $61.7 million in 2024[302] - Operating loss for the year ended April 30, 2025, was $(54.9) million, an improvement from $(129.9) million in 2024[329] Expenses - Research and development expenses for the year ended April 30, 2025, were $365.8 million, an increase of 7% from $342.0 million in 2024[329] - Sales and marketing expenses for the year ended April 30, 2025, rose to $617.2 million, up 10% from $559.6 million in 2024[329] - General and administrative expenses for the year ended April 30, 2025, increased to $175.2 million, compared to $160.6 million in 2024[329] Tax and Other Income - The provision for income taxes was $76.5 million for the year ended April 30, 2025, compared to a benefit of $184.5 million in the prior year[344] - Other income, net increased by $15.4 million, or 46%, for the year ended April 30, 2025, attributed to a $10.3 million increase in interest and investment income[343] Cash and Securities - As of April 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $1.397 billion[348] - The company had purchase commitments of $812.3 million related to cloud hosting services as of April 30, 2025[359] Foreign Currency and Risk Management - Foreign currency transaction losses recognized were $2.5 million, $3.4 million, and $0.4 million for the years ended April 30, 2025, 2024, and 2023, respectively[380] - A 10% increase or decrease in exchange rates as of April 30, 2025, would have impacted cash, cash equivalents, restricted cash, and marketable securities balances by approximately $9.2 million[381] - The company has not had a formal hedging program for foreign currency but may adopt one if exposure increases significantly[379] Accounting and Valuation - The company applies significant judgment in determining the fair value of acquired intangible assets, which involves estimates of future cash flows and discount rates[372] - Revenue recognition involves significant judgment in evaluating customer contracts and performance obligations, with transaction prices allocated based on standalone selling prices[368] - The company recognizes deferred tax assets for net operating loss and credit carryforwards, with a valuation allowance provided unless realization is more likely than not[374]

Revenue Growth - For the three months ended April 30, 2025, National Retail Solutions (NRS) generated total revenues of $31.1 million, a 21.1% increase from $25.7 million in the same period of 2024[130]. - NRS's recurring revenue for the three months ended April 30, 2025, was $29.4 million, reflecting a 22.9% growth compared to $24.0 million in the prior year[130]. - BOSS Money revenues increased by 24.7% to $34.4 million in Q3 2025 compared to Q3 2024, and by 32.2% to $101.6 million in the nine months ended April 30, 2025 compared to the same period in 2024[137]. - Revenues from IDT Digital Payments increased by 1.0% to $102.6 million for the three months ended April 30, 2025, and by 2.7% to $309.3 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - BOSS Revolution revenues decreased by 18.1% to $51.7 million for the three months ended April 30, 2025, and by 19.5% to $161.9 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - IDT Global revenues remained unchanged at $50.1 million for the three months ended April 30, 2025, and increased by 1.9% to $153.7 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. Profitability - Gross profit for NRS in the three months ended April 30, 2025, was $28.4 million, a 28.4% increase from $22.1 million in the same period of 2024[130]. - Gross profit for the company rose by 30.6% to $22.6 million in Q3 2025, and by 36.6% to $65.8 million in the nine months ended April 30, 2025[137]. - Income from operations for NRS increased to $6.2 million in the three months ended April 30, 2025, a 29.3% increase from $4.8 million in the same period of 2024[130]. - Income from operations increased by 39.2% to $17.3 million for the three months ended April 30, 2025, and by 20.2% to $51.1 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[149]. - The company reported a gross margin percentage of 58.5% in Q3 2025, an increase from 54.9% in Q3 2024[137]. - The gross margin percentage improved to 20.7% for the three months ended April 30, 2025, compared to 18.6% for the same period in fiscal 2024, and to 19.9% for the nine months ended April 30, 2025, compared to 18.7% for the same period in fiscal 2024[149]. Expenses - Selling, general and administrative expenses for NRS increased to 64.2% of revenue in the three months ended April 30, 2025, compared to 60.9% in the same period of 2024[134]. - Selling, general and administrative expenses decreased as a percentage of revenue to 41.5% in Q3 2025 from 48.4% in Q3 2024, and to 43.0% from 50.8% in the nine months ended April 30, 2025 compared to 2024[139]. - net2phone's selling, general and administrative expenses decreased to 59.1% of revenues in Q3 2025 from 63.1% in Q3 2024[144]. - Technology and development expenses rose due to increased employee compensation and depreciation, impacting overall operational costs[135]. - Technology and development expenses decreased in the BOSS Money segment due to lower employee compensation expenses[140]. - Technology and development expenses decreased by 4.3% to $5.4 million for the three months ended April 30, 2025, and by 7.7% to $16.2 million for the nine months ended April 30, 2025 compared to the same periods in fiscal 2024[155]. Cash Flow and Capital Management - Cash flow from operations increased to $96.1 million for the nine months ended April 30, 2025, compared to $52.7 million in the same period of 2024[173]. - Total cash, cash equivalents, debt securities, and current equity investments amounted to $223.8 million as of April 30, 2025[170]. - Capital expenditures for the nine months ended April 30, 2025, were $15.5 million, with anticipated total capital expenditures for the next twelve months projected between $18 million and $21 million[180]. - The company paid aggregate cash dividends of $4.0 million in the nine months ended April 30, 2025, compared to $1.3 million in the same period of 2024[183]. - The company expects cash flow from operations and current investments to meet anticipated working capital and capital expenditure requirements for the next twelve months[169]. - The company has a contractual obligation total of $20.8 million, with $7.1 million due within one year[171]. Shareholder Actions - The company repurchased 221,823 shares of Class B common stock for $10.1 million in the nine months ended April 30, 2025, compared to 204,107 shares for $5.7 million in the same period of 2024[189]. - IDT Telecom repurchased shares to satisfy tax withholding obligations, paying $7.7 million for 157,180 shares in the nine months ended April 30, 2025[190]. - The company has 4.2 million shares remaining available for repurchase under the stock repurchase program as of April 30, 2025[189]. - Cash received from the exercise of stock options was $0.2 million for 12,500 shares in the nine months ended April 30, 2024, with no stock option exercises in 2025[188]. Debt and Financing - IDT Telecom entered into a credit agreement for a revolving credit facility of up to $25.0 million, with no amounts outstanding as of April 30, 2025[185]. - In the nine months ended April 30, 2025, IDT Telecom borrowed and repaid an aggregate of $24.6 million under the credit facility, compared to $32.9 million in the same period of 2024[185]. - IDT Telecom is in compliance with all covenants related to the revolving credit facility as of April 30, 2025[186]. Customer and Market Insights - Active POS terminals increased to 35.6 thousand, up 18% from 30.3 thousand in the same period last year[132]. - Payment processing accounts rose to 25.5 thousand, marking a 31% increase from 19.5 thousand in the previous year[132]. - Revenues from international operations accounted for 21% of consolidated revenues in the three months ended April 30, 2025, down from 22% in the same period of 2024[193]. - The Fintech segment contributed 12.8% of total revenues in the three months ended April 30, 2025, up from 10.5% in the same period of 2024[136]. - Traditional Communications segment accounted for 69.6% of total revenues in Q3 2025, down from 74.0% in Q3 2024, indicating a shift in revenue composition[147]. Net Income - Net income for the three months ended April 30, 2025, was $23.0 million, a 262.1% increase from $6.4 million in the same period of 2024[165]. - For the nine months ended April 30, 2025, net income was $63.6 million, up 108.2% from $30.5 million in 2024[165].