Financial Performance - Net sales for the thirteen weeks ended November 1, 2025, were $790,051,000, an increase from $740,941,000 for the same period in 2024, representing a growth of 6.4%[5] - Gross profit for the thirty-nine weeks ended November 1, 2025, was $894,438,000, down from $946,934,000 in 2024, indicating a decrease of 5.5%[5] - Operating earnings for the thirteen weeks ended November 1, 2025, were $11,968,000, significantly lower than $56,698,000 in the same period last year, reflecting a decline of 78.9%[5] - Net earnings attributable to Caleres, Inc. for the thirty-nine weeks ended November 1, 2025, were $16,042,000, compared to $102,325,000 in 2024, a decrease of 84.3%[5] - Basic earnings per share attributable to Caleres, Inc. shareholders for the thirteen weeks ended November 1, 2025, were $0.07, down from $1.20 in the same period last year, a decline of 94.2%[5] - Total comprehensive income attributable to Caleres, Inc. for the thirty-nine weeks ended November 1, 2025, was $23,412,000, down from $108,050,000 in 2024, a decrease of 78.3%[7] - The company reported net earnings attributable to Caleres, Inc. of $11.3 million for the thirteen weeks ended November 1, 2025, down from $37.1 million in the prior year[31] - Basic earnings per share attributable to Caleres, Inc. shareholders for the thirty-nine weeks ended November 1, 2025, was $0.47, down from $2.93 in the prior year, representing a decline of approximately 83.9%[46] Cash Flow and Liquidity - Net cash provided by operating activities for the thirty-nine weeks ended November 1, 2025, was $40,454,000, a decrease from $75,855,000 in 2024, reflecting a decline of 46.4%[9] - The company reported a net cash increase of $4,327,000 for the thirty-nine weeks ended November 1, 2025, compared to an increase of $12,327,000 in the same period last year[9] - Cash and cash equivalents at the end of the period on November 1, 2025, were $33,963,000, slightly up from $33,685,000 at the end of the same period in 2024[9] - The company had $355.0 million of borrowings outstanding and $8.6 million in letters of credit under the Credit Agreement as of November 1, 2025[78] - The revolving credit facility was increased by $200.0 million to a total of $700.0 million, maturing on June 27, 2030[73] - The company has total additional borrowing availability of $278.1 million as of November 1, 2025[78] Acquisitions and Investments - The acquisition of Stuart Weitzman resulted in a cash outflow of $108,858,000, impacting the investing activities significantly[9] - The company completed the acquisition of Stuart Weitzman for an aggregate purchase price of $108.9 million on August 4, 2025[24] - Stuart Weitzman contributed net sales of $45.8 million and reported an operating loss of $18.9 million for the thirteen weeks ended November 1, 2025[29] - The company expects to finalize the purchase price allocation for the Stuart Weitzman acquisition within one year from the acquisition date[27] - The company’s total current assets from the acquisition of Stuart Weitzman were valued at $122.5 million, including inventories of $86.8 million[26] - The company’s total liabilities from the acquisition included current liabilities of $36.2 million[26] Sales and Revenue Breakdown - Total net sales for the thirty-nine weeks ended November 1, 2025, were $2,062,791 thousand, a decrease from $2,083,456 thousand for the same period in 2024, representing a decline of approximately 1%[34] - Direct-to-consumer sales reached $1,485,526 thousand for the thirty-nine weeks ended November 1, 2025, compared to $1,502,046 thousand in the prior year, indicating a decrease of about 1.1%[34] - Retail store sales for Famous Footwear were $975,223 thousand for the thirty-nine weeks ended November 1, 2025, down from $1,040,313 thousand in 2024, reflecting a decline of approximately 6.3%[34] - E-commerce sales from company websites totaled $356,538 thousand for the thirty-nine weeks ended November 1, 2025, compared to $324,561 thousand in 2024, marking an increase of about 9.8%[34] Restructuring and Special Charges - The company incurred restructuring and other special charges of $6,705,000 for the thirteen weeks ended November 1, 2025, compared to $1,593,000 in the same period last year[5] - The Company incurred approximately $2.9 million in costs for expense reduction initiatives during the thirteen weeks ended November 1, 2025, and $7.4 million for the thirty-nine weeks ended November 1, 2025, impacting earnings by $0.06 and $0.16 per diluted share respectively[50] Shareholder Equity and Dividends - The balance of shareholders' equity as of November 1, 2025, was $625,330 thousand, reflecting an increase from previous periods[10] - The company declared dividends of $2,375 thousand, equating to $0.07 per share, for the period ending November 1, 2025[10] - The company reported a net loss of $1,602 thousand attributable to noncontrolling interests for the thirteen weeks ended November 1, 2025[16] Inventory and Assets - The net inventory balance as of November 1, 2025, was $678.2 million, an increase from $585.9 million as of November 2, 2024[58] - The Company reported total intangible assets of $357.6 million as of November 1, 2025, with accumulated amortization of $166.0 million[59] - As of November 1, 2025, the company's total intangible assets amounted to $463.8 million, with a net carrying value of $191.6 million after accumulated amortization and impairment[63] Tax and Compliance - The consolidated effective tax rate for the thirteen weeks ended November 1, 2025, was 76.7%, significantly higher than 23.6% for the same period in 2024[104] - The company is currently evaluating the impact of new accounting standards on its financial statement disclosures, with ASU 2023-09 effective for fiscal year 2025[21] Employee Compensation and Benefits - Share-based compensation expense for the period was $3,117 thousand, contributing to the overall equity[10] - The total net periodic benefit expense for pension benefits was $671,000 for the thirteen weeks ended November 1, 2025, compared to $432,000 for the same period in 2024[88] - The company granted long-term incentive awards with a target value of $6.7 million for the 2025-2027 performance period, with a maximum value of $13.4 million[85]

Financial Performance - Q4 revenue reached $18.0 billion, a 28% increase year-over-year, primarily driven by a 74% increase in AI semiconductor revenue[3] - Fiscal year 2025 adjusted EBITDA rose 35% year-over-year to a record $43.0 billion, with free cash flow at $26.9 billion[3] - Q4 GAAP net income was $8.5 billion, up 97% from the prior year, while non-GAAP net income increased by 39% to $9.7 billion[4] - The company expects Q1 fiscal year 2026 revenue of approximately $19.1 billion, reflecting a 28% year-over-year increase[4] - Net revenue for the fiscal quarter ended November 2, 2025, was $18,015 million, a 13.3% increase from $15,952 million in the previous quarter[25] - Operating income for the quarter was $7,508 million, up 27.5% from $5,887 million in the previous quarter[25] - Income from continuing operations was $8,518 million, compared to $4,140 million in the previous quarter, marking a 105.7% increase[25] - Basic income per share from continuing operations was $1.80, significantly higher than $0.88 in the previous quarter[25] - Non-GAAP net income for the same quarter was $9.714 billion, up from $8.404 billion, reflecting a 15.5% year-over-year growth[29] - Adjusted EBITDA for the fiscal quarter was $12.218 billion, an increase from $10.702 billion, marking a 14.1% rise year-over-year[29] Cash Flow and Assets - Cash flow from operations for Q4 was $7.7 billion, resulting in free cash flow of $7.5 billion, or 41% of revenue[4] - The company’s cash and cash equivalents at the end of the fiscal quarter were $16.2 billion, compared to $10.7 billion at the end of the prior fiscal quarter[5] - Cash and cash equivalents increased to $16.178 billion as of November 2, 2025, compared to $9.348 billion a year earlier, showing a 73.2% increase[33] - Total current assets rose to $31.573 billion, up from $19.595 billion, indicating a 60.9% increase year-over-year[33] - Free cash flow for the fiscal quarter was $7.466 billion, compared to $7.024 billion in the previous year, reflecting a 6.3% increase[29] - Net cash provided by operating activities for the fiscal quarter was $7,703 million, compared to $7,166 million in the previous quarter, reflecting a 7.5% increase[35] - Cash and cash equivalents at the end of the period reached $16,178 million, up from $10,718 million at the beginning of the period[35] Expenses and Liabilities - Research and development expenses for the quarter were $2,981 million, slightly down from $3,050 million in the previous quarter[27] - Total operating expenses on a GAAP basis were $4,741 million, a decrease from $4,816 million in the previous quarter[27] - Stock-based compensation expense totaled $2,195 million for the quarter, down from $2,322 million in the previous quarter[27] - Long-term debt decreased to $61.984 billion from $66.295 billion, a reduction of 6.5%[33] - Payments on debt obligations were $3,638 million, down from $6,750 million in the previous quarter[35] - Cash paid for interest in the fiscal quarter was $699 million, an increase from $602 million in the previous quarter[35] - Cash paid for income taxes was $755 million, slightly down from $822 million in the previous quarter[35] Dividends and Shareholder Returns - The quarterly common stock dividend was increased by 10% to $0.65 per share, marking the fifteenth consecutive annual dividend increase since 2011[3] Other Notable Items - The company reported a one-time discrete non-cash tax benefit of $2.1 billion for the fiscal quarter ended November 2, 2025[30] - The company did not acquire any businesses during the fiscal quarter, maintaining a focus on organic growth[35] - The weighted-average shares used in diluted per share calculations on a non-GAAP basis was 4,969 million[30]

Financial Performance - Net sales for Q4 2025 were $489.8 million, a decrease of 0.5% compared to $492.2 million in Q4 2024, while full-year net sales increased by 43.8% to $1.84 billion from $1.28 billion in 2024[4] - The company reported a net loss of $250.8 million for the full year 2025, primarily due to a non-cash goodwill impairment[5] - Net income for the three months ended October 31, 2025, was $19,571,000, resulting in a diluted EPS of $0.43, compared to a net loss of $13,917,000 and an EPS of $(0.30) for the same period in 2024[32] - The company reported a net loss of $250.806 million for the twelve months ended October 31, 2025, compared to a net income of $33.059 million in 2024[17] - The company reported an operating loss of $193.952 million for the twelve months ended October 31, 2025, primarily due to goodwill impairment charges of $302.284 million[38] Revenue and Sales Breakdown - The Hardware Solutions segment saw a 1.4% increase in Q4 2025 net sales, while the Extruded Solutions segment experienced a 6.4% decrease[4] - Net sales for the three months ended October 31, 2025, were $489.846 million, a slight decrease from $492.161 million in the same period of 2024[32] - For the twelve months ended October 31, 2025, net sales reached $1.838 billion, compared to $1.278 billion in 2024, reflecting a significant increase of 43.8%[44] - Hardware Solutions generated $226.883 million in sales for the three months ended October 31, 2025, up from $223.712 million in 2024[44] - Extruded Solutions reported $168.603 million in sales for the three months ended October 31, 2025, compared to $180.135 million in the same period of 2024[44] - Custom Solutions achieved $103.401 million in sales for the three months ended October 31, 2025, slightly up from $101.240 million in 2024[44] Profitability Metrics - Gross margin for Q4 2025 was $137.6 million, representing a gross margin percentage of 28.1%, up from 23.8% in Q4 2024[2] - Adjusted EBITDA for the full year 2025 was $242.9 million, with an adjusted EBITDA margin of 13.2%, compared to $182.4 million and 14.3% in 2024[2] - EBITDA for the three months ended October 31, 2025, was $70,918,000, compared to $81,050,000 for the same period in 2024, while the twelve-month EBITDA was $242,890,000, up from $182,383,000[32] - The adjusted EBITDA for the twelve months ended October 31, 2025, was $242.890 million, compared to $182,383,000 in the previous year, indicating growth in operational performance[32] - The company reported a gross margin of $206.193 million for the twelve months ended October 31, 2025, with a gross margin percentage of 24.5%[38] Cash Flow and Debt Management - Cash provided by operating activities increased by approximately 86% year-over-year to $164.9 million in 2025[2] - The company repaid $75 million in bank debt during fiscal 2025, improving its liquidity to $372.4 million as of October 31, 2025[3][6] - As of October 31, 2025, total debt stood at $703.9 million, with a leverage ratio of 2.6x[5] - The company’s net debt as of October 31, 2025, was $627.851 million, down from $679.182 million in 2024[25] - Cash provided by operating activities for the twelve months ended October 31, 2025, was $164.897 million, compared to $88.812 million in 2024[22] Future Outlook - The company anticipates a cautious outlook for fiscal 2026, projecting flat revenue and EBITDA compared to fiscal 2025, with potential challenges in the first half[8] - The integration of the Tyman acquisition is substantially complete, with an expected realization of approximately $45 million in cost synergies over time[3] Cost Management - Selling, general and administrative expenses for the three months ended October 31, 2025, were $69.008 million, compared to $86.891 million in the same period of 2024[37] - The company incurred restructuring charges of $10.191 million for the twelve months ended October 31, 2025[38] - Interest expense for the twelve months ended October 31, 2025, was $55,812,000, compared to $20,593,000 in the previous year, reflecting increased borrowing costs[33] Impairment and Charges - The company’s goodwill impairment charges for the twelve months ended October 31, 2025, amounted to $302.284 million[22] - The company reported a goodwill impairment charge of $302,284,000 for the twelve months ended October 31, 2025, which impacted overall profitability[32]

Financial Performance - Net sales for the year ended September 30, 2025, increased to $1,330,836 thousand, a 7.2% increase from $1,241,585 thousand in 2024[315] - Gross profit rose to $397,877 thousand in 2025, up 9.1% from $364,810 thousand in 2024[315] - Net income for 2025 was $46,444 thousand, representing a 37% increase compared to $33,935 thousand in 2024[315] - Basic net income per share increased to $2.02 in 2025, up from $1.49 in 2024, reflecting a 35.6% growth[315] - For the year ended September 30, 2025, the company's total revenue reached $1,330.8 million, a 7.2% increase from $1,241.6 million in 2024[366] - Grocery sales accounted for 72% of total revenue in 2025, with $952.2 million, up from 71% in 2024[366] - Basic earnings per share (EPS) for 2025 was $2.02, an increase of 35.6% compared to $1.49 in 2024[368] - The company recorded net income of $46.4 million for the year ended September 30, 2025, compared to $33.9 million in 2024, reflecting a 37% increase[368] Assets and Liabilities - As of September 30, 2025, total assets increased to $670.5 million from $655.5 million in 2024, reflecting a growth of approximately 2%[312] - Total liabilities decreased to $458.1 million from $481.2 million, a reduction of approximately 5%[312] - Stockholders' equity grew to $212.4 million, up from $174.3 million, representing a 22% increase[312] - Long-lived assets, including property and equipment, totaled $182.7 million as of September 30, 2025[298] - Cash and cash equivalents rose significantly to $17.1 million, up from $8.9 million in 2024, marking an increase of 93%[312] - Merchandise inventory increased to $133.0 million, a rise of 10% from $120.7 million in 2024[312] - Operating lease assets decreased to $259.6 million from $275.1 million, a decline of about 6%[312] - The company reported total accrued expenses of $37.2 million as of September 30, 2025, an increase from $35.8 million in 2024[378] Cash Flow and Dividends - Net cash provided by operating activities decreased to $55,304 thousand in 2025 from $73,760 thousand in 2024, a decline of 25%[318] - The company reported cash dividends of $11,009 thousand in 2025, down from $31,866 thousand in 2024[320] - The Company paid a quarterly cash dividend of $0.12 per share in fiscal year 2025, up from $0.10 in fiscal years 2024 and 2023[413] - The company declared a quarterly cash dividend of $0.15 per share on November 19, 2025, to be paid on December 10, 2025[427] Expenses and Costs - Total advertising and marketing expenses for the years ended September 30, 2025, 2024, and 2023 were $7.0 million, $7.9 million, and $6.9 million, respectively, net of vendor reimbursements of $9.3 million, $7.9 million, and $7.1 million for the same periods[348] - Cost of goods sold and occupancy costs for 2025 totaled $932,959, up 6.4% from $876,775 in 2024 and 14.7% from $813,637 in 2023[424] - Direct operating costs increased to $316,661 in 2025, a rise of 6.5% from $296,385 in 2024 and 15.5% from $274,167 in 2023[424] - Interest expense, net, decreased to $3,063 in 2025 from $4,176 in 2024, suggesting better debt management[424] - Pre-opening expenses decreased to $1,043 in 2025 from $1,722 in 2024 and $2,007 in 2023, indicating improved cost management in new openings[424] Shareholder Information - The Company has increased its restricted payment capacity by $2.5 million, allowing for cash dividends and stock repurchases not to exceed $15.0 million during any fiscal year[382] - The Company has a share repurchase program with $8.1 million remaining for potential repurchases as of December 8, 2025[411] - Share-based compensation expense totaled $4.0 million for the year ended September 30, 2025, compared to $2.8 million in 2024 and $1.4 million in 2023[407] - The Company anticipates recognizing $7.5 million of unrecognized share-based compensation expense over a weighted average period of approximately 2.3 years as of September 30, 2025[408] Taxation - The total provision for income taxes for the year ended September 30, 2025, was $12.483 million, an increase from $8.866 million in 2024 and $5.127 million in 2023[417] - The Company had a current federal income tax expense of $12.575 million for the year ended September 30, 2025, compared to $10.413 million in 2024 and $5.291 million in 2023[417] Operational Insights - The company operated 169 retail stores as of September 30, 2025, maintaining the same number of stores as in 2024[323] - The largest vendor accounted for approximately 69% of all product purchases in 2025, slightly up from 68% in 2024[331] - The Company has one operating segment, which is natural and organic retail stores, deriving all revenue from grocery and related product sales in the United States[423] - The Company assesses its long-lived assets for possible impairment at least annually, with significant changes in performance or decisions to close stores triggering assessments[336] - The Company recorded no impairment charges related to goodwill or indefinite-lived intangibles as of September 30, 2025[337] Debt and Credit Facilities - The company has no amounts outstanding under its Credit Facility as of September 30, 2025[289] - The Company amended its Credit Facility on November 16, 2023, increasing aggregate revolving commitments from $50.0 million to $75.0 million and extending the maturity date to November 16, 2028[382] - As of September 30, 2025, the Company had $70.1 million available for borrowing under the Credit Facility, with no revolving loan amounts outstanding[383] - The Company incurred gross interest expense of $3.3 million for the year ended September 30, 2025, down from $4.5 million in 2024[386] Lease Information - Total lease cost for the year ended September 30, 2025, was $62.0 million, an increase from $61.5 million in 2024[397] - Operating cash flows from operating leases were $46.2 million for the year ended September 30, 2025, compared to $46.0 million in 2024[398] - The weighted-average remaining lease term for operating leases was 9.3 years as of September 30, 2025, down from 9.9 years in 2024[398] - Future undiscounted lease payments total $416.4 million as of September 30, 2025, with $282.3 million reported as lease liability[400] - The Company had 25 finance leases as of September 30, 2025, with no rent expense recorded for these leases[385] - The Company recognized sublease income of $0.4 million for the year ended September 30, 2025[397]

Financial Performance - Revenues for the three months ended October 31, 2025, were approximately $9.7 million, a decrease from $12.1 million for the same period in 2024, while revenues for the nine months ended October 31, 2025, were approximately $31.2 million compared to $31.8 million in 2024[88]. - Operating income for the three months ended October 31, 2025, was approximately $774,000, down from $1.9 million in the same period of 2024, and for the nine months ended October 31, 2025, it was approximately $2.8 million compared to $4.0 million in 2024[88]. - Gross profit margin for the three months ended October 31, 2025, increased to 47% from 45% in the same period of 2024, and for the nine months, it remained at 47% compared to 45% in 2024[90]. - The company anticipates generating net income for fiscal 2026, following positive Adjusted EBITDA for fiscal 2024 and fiscal 2025[97]. Order Backlog and Future Expectations - As of October 31, 2025, the backlog of firm orders was approximately $7.2 million, down from $16.9 million as of January 31, 2025, but additional orders totaling approximately $9.5 million were received after this date[79]. - The company expects revenue in the fourth quarter of fiscal 2026 to improve compared to the third quarter of fiscal 2026, driven by increased activity and backlog[80]. - The company is pursuing new product initiatives and significant project opportunities that could positively impact future financial results, particularly in fiscal 2027[80]. Cash Flow and Capital - For the nine months ended October 31, 2025, the company generated net cash provided by operating activities of approximately $5.9 million, compared to cash used in operating activities of approximately $1.4 million for the same period in 2024[99][104]. - As of October 31, 2025, the company had working capital of approximately $36.0 million, including cash and cash equivalents of approximately $19.4 million, an increase from working capital of approximately $23.5 million and cash equivalents of approximately $5.3 million as of January 31, 2025[98][103]. - The company raised approximately $10.8 million in new capital through the sale of common stock, significantly increasing liquidity[82]. - Net cash provided by financing activities for the nine months ended October 31, 2025, was approximately $10.8 million, primarily from sales of common stock under the ATM program[106]. - The company initiated an at-the-market (ATM) offering program in September 2025, allowing for gross proceeds of up to $25.0 million, and has generated net proceeds of approximately $10.8 million from the issuance of approximately 1.0 million shares of common stock[100]. Expenses and Investments - Research and development costs for the three and nine months ended October 31, 2025, were approximately $506,000 and $1.2 million, respectively, compared to $562,000 and $1.4 million in the same periods of 2024[92]. - General and administrative expenses for the three and nine months ended October 31, 2025, were approximately $3.0 million and $10.0 million, respectively, compared to $2.8 million and $8.3 million in 2024, primarily due to higher stock-based compensation[91]. - The company’s facility in Huntsville, Texas underwent an expansion, which is expected to lead to increased revenue following the resumption of repair and production operations[78]. Tax and Foreign Operations - The income tax expense for the three months ended October 31, 2025, was approximately $716,000 on pre-tax income of approximately $778,000, compared to an income tax expense of approximately $396,000 on pre-tax income of approximately $1.7 million for the same period in 2024[95]. - As of October 31, 2025, the company had deposits in foreign banks totaling approximately $4.9 million, which could be distributed to the United States without adverse tax consequences[108]. - The company has determined that undistributed earnings of foreign subsidiaries are not deemed indefinitely reinvested outside of the United States as of October 31, 2025[107]. - The company does not currently hold or issue foreign exchange contracts or other derivative instruments to hedge currency exposure, which includes approximately $566,000 in cash and cash equivalents denominated in foreign currencies[113]. - The company has no off-balance sheet arrangements as of October 31, 2025[109].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 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: 001-42938 Evommune, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 85-0742575 (State or other jurisdiction ...

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 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FORM 10-Q (Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Exzeo Group, Inc. (Exact Name of Registrant as Specified in its Charter) Florida 85-2578837 (State or other jurisdiction of incorporation or organization ...

Financial Performance - Revenue for Q2 FY 2026 was approximately $17.1 million, a 24% increase compared to $15.8 million in Q2 FY 2025[3] - Operating income for Q2 FY 2026 was $1.7 million, down from $2.6 million in Q2 FY 2025[3] - Net income for Q2 FY 2026 was $1.8 million or $0.18 per diluted share, compared to $2.7 million or $0.28 per diluted share in Q2 FY 2025[3] - Cash provided by operating activities for the first six months of FY 2026 was approximately $0.6 million, down from $2.4 million in the same period of FY 2025[3] - The company reported a gross margin of $6.5 million for Q2 FY 2026, compared to $7.6 million in Q2 FY 2025[14] Backlog and Contracts - The backlog as of October 31, 2025, was approximately $82 million, up from $70 million at April 30, 2025[3] - The company anticipates multiple large contract awards in the coming months, contributing to growth in core technologies[5] Growth Opportunities - The company is pursuing growth opportunities in quantum sensing and alternative position, navigation, and timing solutions, expected to expand markets over the next 3 to 5 years[5] - The second annual Quantum Sensing Summit is rescheduled for January 14-15, 2026, to discuss emerging technologies and strategies[6] Assets - Total assets as of October 31, 2025, were approximately $92.3 million, a decrease from $93.7 million at April 30, 2025[16]

Financial Performance - Consolidated net sales for Q1 fiscal 2026 were $111.0 million, a decrease of 4.1% from $115.8 million in Q1 fiscal 2025[214][225]. - Gross margin improved to 33.1% in Q1 fiscal 2026, up from 12.5% in Q1 fiscal 2025, reflecting cost reduction actions and improved product mix[214]. - GAAP net loss attributable to common stockholders was $19.8 million, with a GAAP EPS net loss of $0.67 and Non-GAAP EPS net loss of $0.18[214]. - New bookings totaled $101.9 million, resulting in a book-to-bill ratio of 0.92x for the quarter[214]. - Backlog as of October 31, 2025, was $663.0 million, down from $811.0 million a year earlier[214]. - Gross profit for the three months ended October 31, 2025, was $36.8 million, an increase of $22.3 million or 153.3% compared to $14.5 million in the same period of 2024, with gross profit as a percentage of consolidated net sales rising from 12.5% to 33.1%[230]. - The operating loss for the three months ended October 31, 2025, was $2.8 million, significantly improved from an operating loss of $129.2 million in the prior year period[249]. - For the three months ended October 31, 2025, the consolidated net loss attributable to common stockholders was $19.8 million, a significant improvement from a net loss of $155.9 million in the prior year period[263]. Segment Performance - The Satellite and Space Communications segment net sales were $55.1 million, a decrease of 6.5% from $58.9 million in Q1 fiscal 2025[226]. - The Allerium segment net sales were $55.9 million, a decrease of 1.8% from $56.9 million in Q1 fiscal 2025[227]. - The Satellite and Space Communications segment reported an operating loss of $11.4 million for the three months ended October 31, 2025, compared to an operating loss of $118.8 million in the same period of 2024[249]. - The Allerium segment achieved an operating income of $5.4 million for the three months ended October 31, 2025, compared to $5.3 million in 2024[249]. - The Satellite and Space Communications segment reported an operating income of $3.2 million for the three months ended October 31, 2025, compared to an operating loss of $118.8 million in the same period last year[265]. Cash Flow and Liquidity - Cash flows from operating activities were $8.1 million, marking the third consecutive quarter of positive operating cash flows[215]. - Cash and cash equivalents increased to $43.6 million as of October 31, 2025, up from $40.0 million on July 31, 2025[273]. - Net cash provided by operating activities was $8.1 million for the three months ended October 31, 2025, compared to a net cash used of $21.8 million in the prior year period, reflecting a significant improvement[273]. - Net cash used in investing activities was $3.3 million for the three months ended October 31, 2025, primarily for capital expenditures in the Allerium segment[276]. - Total outstanding borrowings under the Credit Facility were $135.0 million as of October 31, 2025, with $17.6 million drawn on the Revolver Loan[282]. - Available sources of liquidity totaled $51.0 million as of October 31, 2025, including cash and cash equivalents of $41.4 million[282]. Costs and Expenses - Consolidated selling, general and administrative expenses decreased to $29.9 million for the three months ended October 31, 2025, down from $51.6 million in 2024, representing 27.0% of consolidated net sales compared to 44.6% in the prior year[235]. - Research and development expenses increased slightly to $3.8 million for the three months ended October 31, 2025, from $3.7 million in 2024, representing 3.4% of consolidated net sales compared to 3.2%[240]. - The company incurred $2.4 million in restructuring costs during the three months ended October 31, 2025, compared to $6.5 million in the same period of 2024[237]. - Unallocated expenses decreased to $9.0 million in the recent period from $9.5 million in the prior year, primarily due to lower overall expenditures for selling, general, and administrative expenses[254]. Strategic Outlook - The company anticipates long-term growth in end markets due to increasing demand for global voice, video, and data usage, as well as the growth of emergency communication networks[193]. - The company is exploring strategic alternatives for its businesses, which may impact future results of operations[228]. - The company plans to continue focusing on research and development, despite higher expenses in this area, to drive future growth and innovation[266]. - The company expects recurring annualized cost savings of approximately $3.0 million from migrating production capabilities to Chandler, Arizona[217]. - The company may raise additional funds through equity and debt financing to provide flexibility or pursue acquisitions[280]. Risks and Challenges - The company faces risks related to the integration of acquired businesses and the successful implementation of strategic activities, which may not yield expected benefits[192]. - The company’s contracts with the U.S. government can be terminated for convenience at any time, leading to unpredictable funding and deployment[195]. - Significant fluctuations in sales and operating results are expected due to factors such as short-term or long-term contracts and changes in estimated fair value of derivative instruments[195]. - The company provides warranty coverage for most products for at least one year from the date of shipment, with liabilities recorded based on historical claims and product failure rates[203].

Revenue Performance - Net revenue increased by 7% to $2.6 billion, with comparable sales rising by 1% or 2% on a constant dollar basis[98] - Net revenue for the third quarter of 2025 was $1,733,382, a decrease of 2.1% compared to $1,770,382 in 2024, primarily due to a 5% decrease in comparable sales[120] - Year-to-date net revenue for the first three quarters of 2025 was $7,461,799, a 7% increase from $6,976,629 in 2024, with significant contributions from China Mainland and Rest of World[130] - Total net revenue increased by 7% in the third quarter of 2025 compared to the same period in 2024, with a notable 46% increase in the China Mainland market[158] - Net revenue in the Americas segment increased by $32,078 to $5,166,157, a growth of 0.6% year-over-year[137] - In China Mainland, net revenue surged by $290,048 to $1,226,361, representing a 31.0% increase compared to $936,313 in 2024[140] - The Rest of World segment reported a net revenue increase of $163,044, reaching $1,069,281, an 18.0% growth year-over-year[142] Profitability and Expenses - Income from operations decreased by 11% to $435.9 million, resulting in an operating margin decline of 350 basis points to 17.0%[108] - Gross profit increased by 2% to $1.4 billion, but gross margin decreased by 290 basis points to 55.6%[98] - Selling, general and administrative expenses rose by 8.6% to $988.3 million, accounting for 38.5% of net revenue[113] - Net income for the third quarter of 2025 was $306,835, a decrease of 12.8% from $351,870 in 2024, primarily due to increased selling, general and administrative expenses[129] - Gross profit in the Americas segment decreased to $981,861, down 10.2% from $1,092,921 in the previous year, attributed to lower product margins and higher occupancy costs[120] - Selling, general and administrative expenses rose to $2,882,783, reflecting an increase of $258,571 or 9.9% from $2,624,212 in 2024[132] - Other income decreased by 57.4% to $5,854, primarily due to lower interest income from decreased cash balances and interest rates[127] Market Performance - Americas comparable sales decreased by 5%, while China Mainland comparable sales increased by 24% or 25% on a constant dollar basis[98] - The increase in net revenue was primarily driven by growth in China Mainland and Rest of World, partially offset by a decline in the Americas[112] - Comparable sales in China Mainland increased by 16%, driven by higher e-commerce traffic[140] - Comparable sales in the Americas decreased by 5% in the third quarter of 2025, while China Mainland saw a 24% increase[158] Tax and Corporate Expenses - The effective tax rate increased to 30.5% in 2025 from 30.2% in 2024, primarily due to adjustments upon the filing of income tax returns[128] - The effective tax rate increased to 30.4%, up 60 basis points from 29.8% in 2024[146] - Corporate expenses decreased by $4.1 million to $339.6 million, mainly due to lower employee costs and decreased incentive compensation[126] - Corporate expenses rose to $1.0 billion, an increase of $61.5 million compared to the previous year, primarily due to higher technology and marketing costs[144] Cash Flow and Liquidity - Cash provided by operating activities was $459.6 million in the first three quarters of 2025, a decrease of $411.7 million compared to $871.3 million in 2024[162] - As of November 2, 2025, the company's cash and cash equivalents totaled $1.035 billion, with working capital excluding cash at $1.046 billion[167] - The company believes its liquidity resources will be adequate to meet capital expenditure requirements for at least the next 12 months[166] - As of November 2, 2025, the company held cash and cash equivalents of $1.0 billion[184] - The committed revolving credit facility provides available borrowings up to $600.0 million, with no outstanding borrowings other than letters of credit and guarantees of $7.0 million as of November 2, 2025[183] Inventory and Operations - The inventory balance increased by 11% to $2.0 billion as of November 2, 2025, compared to October 27, 2024[169] - The company operated 796 stores globally as of November 2, 2025, an increase from 767 stores in February 2025[174] - The company repurchased 3.5 million shares at a total cost of $906.6 million in the first three quarters of 2025, down from 4.2 million shares costing $1.3 billion in the same period of 2024[165] Economic Factors - Increased tariffs and the removal of the de minimis exemption are expected to reduce income from operations by approximately $210 million for 2025[105] - Foreign currency fluctuations negatively impacted net revenue growth by $15.4 million compared to the first three quarters of 2024[109] - The company experienced a $15.4 million decrease in revenue due to fluctuations in foreign currency exchange rates in the first three quarters of 2025 compared to the same period in 2024[177] - Inflationary pressures, including higher product, transportation, labor, and raw material costs, may adversely affect operating results if not offset through pricing or efficiencies[186]