UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 For the transition period from ________________ to ___________________ Commission File Number Registrant; State of Incorporation; Address; and Telephone Number IRS Employer Identification No. 001-09057 WEC ENERGY GROUP, INC. 39-1391525 (A Wisconsin Corporation) 231 West Michigan Street P.O. Box 1331 Milwaukee, WI 53201 (414) 221-2345 Securities registered pursuant to Section 12(b) of the Act: | | | Name of Each Exchange on Which | | --- | ...

Financial Performance - As of September 30, 2025, the net asset value (NAV) per common share decreased to $10.17 from $10.91 at June 30, 2025, primarily due to a net loss on investments of $0.58 per common share[142]. - Total investment income for the quarter ended September 30, 2025, increased to $10.6 million from $10.5 million in the prior quarter, driven by non-recurring interest and dividend income[143]. - A net loss on investments of $7.8 million was recognized for the quarter ended September 30, 2025, attributed to a net realized loss of $4.6 million and net unrealized depreciation of $3.1 million[145]. - For the three months ended September 30, 2025, total investment income increased to $10.6 million from $10.5 million in the prior quarter, driven by non-recurring income[180]. - Net loss on investments for the three months ended September 30, 2025, was $7.8 million, primarily due to unrealized depreciation on equity investments[191]. - For the nine months ended September 30, 2025, total investment income decreased by $5.0 million compared to the prior year, mainly due to a $3.3 million decrease in total interest income[184]. - Net loss on investments for the nine months ended September 30, 2025, was $31.4 million, consisting of $20.0 million in unrealized depreciation and $11.4 million in realized losses[193]. Debt and Financing - The total outstanding debt decreased from $243.4 million at June 30, 2025, to $239.2 million at September 30, 2025, while the weighted-average debt interest costs increased to 6.67% from 6.21%[144]. - The company had $239.2 million of outstanding debt with a weighted-average effective interest rate of 7.03% as of September 30, 2025[205]. - The company redeemed $94.0 million of Unsecured Notes Due February 2026, resulting in a loss on extinguishment of debt of $0.3 million[215]. - The company issued $69.0 million in Unsecured Notes Due July 2028, with net proceeds of $67.3 million after fees[212]. - The company entered into a private placement for a $25.0 million Unsecured Note Due August 2029, with net proceeds of $24.2 million[213]. - The BNP Facility had outstanding debt of $59.2 million as of September 30, 2025, with an effective interest rate of 7.19%[220]. - Approximately 62% of the company's outstanding debt matures in more than two years, and 75% is unsecured[205]. Asset Management - As of September 30, 2025, the asset coverage ratio was 157%, exceeding the minimum requirement of 150% under the 1940 Act[146]. - The fair value of the debt investment portfolio totaled $205.6 million across 33 portfolio companies, with approximately 88% being first lien debt investments[157]. - The company had non-accrual loans with an aggregate fair value of $23.1 million, representing 6.2% of total investments at fair value[145]. - As of September 30, 2025, 100% of the loan portfolio and 56% of the total portfolio consisted of first lien and second lien loans[164]. - The three largest industries by fair value in the Portfolio Company Investments were Manufacturing (32.6%), Health Care and Social Assistance (20.8%), and Real Estate and Rental and Leasing (7.3%), totaling approximately 60.7%[165]. - As of September 30, 2025, approximately 81% of investments were qualifying assets, in compliance with BDC regulations[224]. Cash and Liquidity - As of September 30, 2025, the company held cash and cash equivalents of $5.0 million, including $2.5 million held by OFSCC-FS[197]. - The company had an unused commitment of $25.0 million under the Banc of California Credit Facility, which is scheduled to mature on February 28, 2026[198]. - Cash from net investment income for the nine months ended September 30, 2025, decreased by $1.9 million compared to the same period in 2024[202]. - The company expects to fund portfolio growth through current borrowings and future capital raises, but cannot assure stockholders of success[222]. - The reinvestment period of the BNP Facility expired on September 30, 2025, potentially constraining short-term liquidity if a new credit facility is not established[199]. Distributions - On October 28, 2025, a distribution of $0.17 per share was declared for the fourth quarter of 2025, payable on December 31, 2025[148]. - The Board declared a distribution of $0.17 per share for the fourth quarter of 2025, payable on December 31, 2025[237].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ 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 1-9810 Owens & Minor, Inc. (Exact name of Registrant as specified in its charter) Virginia 54-1701843 (State or other jur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 _________________________________________________________ FORM 10-Q _________________________________________________________ (Mark One) x 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 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commissio ...

Financial Performance - Net sales for Q3 2025 were $581.7 million, a 9% increase compared to Q3 2024, while year-to-date (YTD) sales reached $1.6 billion, up 6% from the previous year[95] - Gross profit for Q3 2025 was $208.7 million, representing a gross profit margin of 35.9%, compared to 35.7% in Q3 2024[104][105] - Diluted earnings per share for Q3 2025 decreased to $0.37, down $0.80 from Q3 2024, primarily due to a pension settlement loss of $41.7 million net of tax[95] - Net income for Q3 2025 was $17.2 million, a decrease from $54.9 million in Q3 2024, with diluted earnings per share dropping from $1.17 to $0.37[121] Sales Growth - Water Systems net sales increased by 11% in Q3 2025 and 7% YTD, driven by acquisitions and favorable volumes[98] - Energy Systems net sales rose 15% in Q3 2025 and 9% YTD, primarily due to price realization and favorable volumes[101] - Distribution segment net sales increased by 3% in Q3 2025 and 2% YTD, attributed to higher volumes and price realization[103] Operating Income and Expenses - Operating income for Q3 2025 was $85.1 million, an increase of 16% compared to Q3 2024, with a consolidated operating income margin of 14.6%[108] - SG&A expenses were $123.5 million in Q3 2025, with an SG&A ratio of 21.2%, down from 21.8% in Q3 2024[106] Acquisitions - The Company completed acquisitions of Barnes de Colombia S.A. and PumpEng Pty Ltd, contributing $37.2 million in incremental net sales in the first nine months of 2025[93] Cash Flow and Investments - Net cash provided by operating activities was $134.7 million for the first nine months of 2025, down from $151.1 million in the same period of 2024[131] - Net cash used in investing activities increased significantly to $137.1 million in the first nine months of 2025, compared to $29.3 million in 2024, primarily due to acquisitions[132] Debt and Interest - Interest expense increased to $3.5 million in Q3 2025 from $1.6 million in Q3 2024, driven by higher outstanding debt[115] - As of September 30, 2025, the company had a $350.0 million revolving credit facility with $277.3 million available for borrowing[123] - The company maintains a remaining borrowing capacity of $200.0 million under the Prudential Agreement as of September 30, 2025[124] Tax and Foreign Exchange - The effective tax rate rose to 26.9% in Q3 2025 from 23.6% in Q3 2024, influenced by foreign earnings and less favorable discrete events[120] - Foreign exchange transactions resulted in an expense of $2.7 million in Q3 2025, compared to a gain of $0.1 million in Q3 2024, mainly due to losses from the Argentine Peso and Turkish Lira[118] Pension and Other Charges - The company reported a pension settlement charge of $55.3 million in Q3 2025 related to the Franklin Electric Co., Inc. Pension Plan[117] - The Company anticipates ongoing uncertainty regarding the impact of tariffs and global trade policies on its consolidated results[94] Cash Holdings - Cash and cash equivalents held in foreign jurisdictions amounted to $62.7 million, intended for funding foreign operations[127]

Financial Performance - Net income for Q3 2025 was $100.3 million, or $10.67 per share, down from $132.3 million, or $13.79 per share in Q3 2024[3] - Operating profit for petroleum additives in Q3 2025 was $131.3 million, down 16.6% from $157.5 million in Q3 2024[4] - Specialty materials operating profit for Q3 2025 was $6.0 million, down from $16.0 million in Q3 2024[6] - Operating profit for the nine months ended September 30, 2025, was $433,697, a decrease of 5.1% compared to $457,275 for the same period in 2024[24] - Net income for Q3 2025 was $100,269, down 24.2% from $132,322 in Q3 2024[24] - EBITDA for the nine months ended September 30, 2025, was $566,436, a slight decrease from $579,151 in the same period of 2024[27] Sales Performance - Petroleum additives sales for Q3 2025 were $649.1 million, a decrease of 2.8% from $663.0 million in Q3 2024[4] - Specialty materials sales for Q3 2025 were $38.2 million, a decline of 35.3% from $59.1 million in Q3 2024[6] - For the first nine months of 2025, petroleum additives sales were $1.9 billion, compared to $2.0 billion in the same period of 2024[5] - Specialty materials sales for the first nine months of 2025 increased to $133.9 million from $114.2 million in the same period of 2024[7] - Net sales for Q3 2025 were $690,311, a decrease of 4.8% from $724,947 in Q3 2024[24] Assets and Debt - Cash and cash equivalents increased to $102,455 as of September 30, 2025, compared to $77,476 at December 31, 2024[25] - Total assets rose to $3,234,190 as of September 30, 2025, from $3,129,541 at December 31, 2024[25] - Net debt decreased to $680,649 as of September 30, 2025, from $893,805 at December 31, 2024[28] - Net Debt to EBITDA ratio improved to 0.9 as of September 30, 2025, following a reduction in long-term debt by $188.2 million[10] - Net borrowings under the revolving credit facility were $11,000 for the nine months ended September 30, 2025, compared to $191,000 in the same period of 2024[26] Dividends - The quarterly dividend was increased by 9% to $3.00 per share, payable January 2, 2026[11] - The company declared cash dividends of $2.75 per share in Q3 2025, an increase from $2.50 in Q3 2024[24] Acquisitions - The company acquired Calca Solutions, LLC on October 1, 2025, enhancing its specialty materials segment[8]

Financial Performance - Federated Hermes reported Q3 2025 earnings per diluted share (EPS) of $1.34, up 26.4% from $1.06 in Q3 2024, with net income of $104.1 million compared to $87.5 million last year[1][2]. - Revenue for Q3 2025 increased by $61.0 million or 15%, primarily due to higher average money market and equity assets[9][12]. - Total revenue for Q3 2025 reached $469,446,000, a 15% increase from $408,456,000 in Q3 2024[24]. - Net income for Q3 2025 was $104,126,000, reflecting a 19% growth compared to $87,538,000 in Q3 2024[24]. - Investment advisory fees, net, increased by 13% to $310,366,000 in Q3 2025 from $274,621,000 in Q3 2024[24]. - For the nine months ended September 30, 2025, total revenue was $1,317,830,000, a 9% increase from $1,207,410,000 in the same period of 2024[25]. - Net income for the nine months ended September 30, 2025, was $296,260,000, a 61% increase from $183,598,000 in the prior year[25]. Assets Under Management - Total assets under management reached a record $871.2 billion as of September 30, 2025, an increase of $70.7 billion or 9% from $800.5 billion a year earlier[2][7]. - Money market assets were a record $652.8 billion, up $59.8 billion or 10% from $593.0 billion at the same time last year[8][9]. - Fixed-income assets also reached a record $101.8 billion, increasing by $1.6 billion or 2% from $100.2 billion at September 30, 2024[5][7]. - Equity assets totaled $94.7 billion, up $11.1 billion or 13% from $83.6 billion a year ago[4][7]. - Alternative/private markets assets decreased to $19.0 billion, down $1.7 billion or 8% from the previous year[6][7]. - Total Managed Assets increased to $871,200 million as of September 30, 2025, up from $800,451 million a year earlier, representing a growth of 8.8%[34]. - Total long-term assets reached $218,433 million, an increase of 5.4% from $207,421 million in the same quarter last year[34]. Expenses - Operating expenses rose by $43.3 million or 15%, mainly due to increased distribution expenses and fluctuations in foreign currency exchange rates[10][12]. - Total operating expenses for Q3 2025 were $339,994,000, up 15% from $296,714,000 in Q3 2024[24]. Dividends - The company declared a dividend of $0.34 per share, payable on November 14, 2025[3][7]. Market Activity - Total sales for the quarter amounted to $15,105 million, compared to $14,054 million in the previous quarter, showing an increase of 7.5%[27]. - Total redemptions for the quarter were $15,245 million, slightly higher than $14,520 million in the previous quarter, reflecting an increase of 5.0%[27]. - Market gains for the quarter were $7,729 million, compared to $6,657 million in the previous quarter, representing a growth of 16.1%[27]. - Net sales (redemptions) for the quarter were a loss of $140 million, compared to a loss of $466 million in the previous quarter, indicating an improvement[27]. - The company reported a total of $43,663 million in sales for the nine months ended September 30, 2025, significantly up from $32,613 million in the same period last year, reflecting a year-over-year increase of 33.5%[27]. Equity and Liabilities - Total assets as of September 30, 2025, amounted to $2,182,270,000, compared to $2,084,684,000 at the end of 2024[26]. - Current liabilities decreased to $256,400,000 as of September 30, 2025, from $289,193,000 at the end of 2024[26]. - Equity excluding treasury stock increased to $1,993,883,000 as of September 30, 2025, from $1,728,044,000 at the end of 2024[26].

Financial Performance - For the three months ended September 30, 2025, consolidated revenue increased by 7% to $863.3 million, driven primarily by growth in the Vista and PrintBrothers segments [130]. - Organic constant-currency revenue growth was reported at 4%, indicating a solid performance excluding the impact of acquisitions and currency fluctuations [130]. - Operating income rose by $9.6 million to $49.0 million, attributed to increased gross profit from revenue growth and operational efficiencies [128]. - Net income increased by $18.9 million to $6.5 million, supported by higher operating income and improved other income from unrealized hedging gains [129]. - Adjusted EBITDA increased by $10.9 million to $98.7 million, reflecting strong operational performance and favorable currency impacts [130]. - Net income for Q3 2025 was $6,520,000, a significant improvement from a net loss of $12,384,000 in Q3 2024, representing a turnaround of approximately 152.7% [207]. - Adjusted EBITDA for Q3 2025 increased to $98,715,000, up 12.5% from $87,771,000 in Q3 2024 [207]. - Net cash provided by operating activities rose to $25,059,000 in Q3 2025, compared to $4,384,000 in Q3 2024, marking an increase of 471.5% [208]. - Adjusted free cash flow improved to $(17,759,000) in Q3 2025 from $(25,618,000) in Q3 2024, reflecting a reduction in negative cash flow by 30.7% [208]. Segment Performance - Revenue growth in the Vista segment was particularly strong in promotional products, apparel, and packaging, contributing significantly to overall revenue increases [127]. - Vista segment reported revenue grew by 6% to $454.909 million, with segment EBITDA increasing by 11% to $89.986 million [162][163]. - PrintBrothers segment revenue increased by 15% to $184.711 million, with segment EBITDA rising by 27% to $25.739 million [165][166]. - The Print Group's revenue grew by 15% to $96.710 million, while segment EBITDA increased by 3% to $18.671 million [169][171]. - National Pen's revenue increased by 10% to $103.209 million, with segment EBITDA improving by $2.2 million despite a negative EBITDA margin [172][174]. - Segment revenue growth for All Other Businesses was 8% for the three months ended September 30, 2025, driven by strong performance in the packaging product category [178]. - Segment EBITDA increased by $2.2 million compared to the prior year, largely due to cross-Cimpress revenue growth and lower variable long-term incentive compensation expenses of $1.9 million [179]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased by $20.7 million to $25.1 million, driven by higher net income and favorable changes in net working capital [132]. - Adjusted free cash flow improved by $7.9 million to $(17.8) million, despite increased capital expenditures for new production equipment and technology enhancements [133]. - Net cash provided by operating activities was $25.1 million for the three months ended September 30, 2025, a significant increase from $4.4 million in the prior year [182]. Expenses and Costs - Cost of revenue for the three months ended September 30, 2025, increased by $37.7 million year over year, primarily due to higher third-party fulfillment costs and internal manufacturing expenses [144]. - Technology and development expenses increased by $3.0 million to $84.886 million for the three months ended September 30, 2025, representing a 4% increase year-over-year [145][147]. - Marketing and selling expenses rose by $6.6 million to $210.398 million, a 3% increase, driven by higher cash compensation costs and increased advertising spend [145][149]. - General and administrative expenses increased by $2.1 million to $53.996 million, primarily due to higher cash compensation costs and a sales tax reserve expense [145][151]. Debt and Financial Obligations - Cash and cash equivalents stood at $200.5 million, while total debt was $1,600.9 million as of September 30, 2025 [184]. - Total contractual obligations amounted to $2,616.4 million, with $318.9 million due within one year [189]. - The company had unrecorded purchase commitments of $429.2 million as of September 30, 2025, primarily for third-party cloud services and fulfillment [193]. - The 2032 Senior Notes bear interest at a rate of 7.375% per annum and have a total principal amount of $525.0 million [195]. Interest and Taxation - Interest expense decreased by $3.3 million, attributed to a lower weighted average interest rate on the senior secured Term Loan B [156]. - Income tax expense increased to $17.838 million with an effective tax rate of 73.2% for the three months ended September 30, 2025 [157]. Risk Management - The U.S. tariff environment remains fluid, with Cimpress managing tariff impacts through supply chain optimization and pricing adjustments [125]. - As of September 30, 2025, the company had $1,070.1 million in variable-rate debt, exposing it to interest rate risk [211]. - A hypothetical 100 basis point increase in interest rates would result in an $8.0 million increase in interest expense over the next 12 months [211]. - The company manages currency exchange rate risk through normal operations and derivative financial instruments, with significant exposures in the Euro and British Pound [213]. - The use of currency derivatives that do not qualify for hedge accounting may lead to volatility in consolidated financial statements due to unrealized gains and losses [214]. - The company executed interest rate swap contracts to mitigate exposure to interest rate changes related to its variable-rate debt [211].

Financial Performance - Revenue increased by $45.3 million, or 31%, to $192.9 million for the three months ended September 30, 2025, compared to $147.5 million for the same period in 2024[172]. - Adjusted EBITDA for the three months ended September 30, 2025, was $21.6 million, compared to a net loss of $5.2 million[150]. - The net loss for the nine months ended September 30, 2025, was $50.1 million, which included $2.3 million of acquired in-process research and development expense[150]. - Net loss decreased by $40.9 million, or 89%, to $5.2 million for the three months ended September 30, 2025, compared to a net loss of $46.2 million for the same period in 2024[172]. - Interest income decreased by $0.5 million to $5.9 million for the three months ended September 30, 2025, compared to $6.5 million for the same period in 2024[178]. - Other income, net decreased by $0.6 million to $0.6 million for the three months ended September 30, 2025, compared to $1.2 million for the same period in 2024[180]. - Income tax provision decreased by $0.2 million, or 87%, during the three months ended September 30, 2025, compared to $0.2 million for the same period in 2024[182]. - Acquired in-process research and development expenses decreased by $31.8 million, or 99%, to $0.3 million for the three months ended September 30, 2025, compared to $32.1 million for the same period in 2024[175]. Revenue Sources - For the three months ended September 30, 2025, revenue from contracted third-party payors was 51%, while revenue from healthcare institutions was 17%[146]. Cost and Expenses - Cost of revenue rose by $9.7 million, or 21%, to $55.8 million for the three months ended September 30, 2025, compared to $46.1 million for the same period in 2024[173]. - Gross profit increased by $35.6 million, or 35%, to $137.1 million for the three months ended September 30, 2025, compared to $101.5 million for the same period in 2024[172]. - Research and development expenses grew by $5.3 million, or 34%, to $21.0 million for the three months ended September 30, 2025, compared to $15.7 million for the same period in 2024[174]. - Selling, general and administrative expenses increased by $20.8 million, or 20%, to $124.2 million for the three months ended September 30, 2025, compared to $103.4 million for the same period in 2024[176]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2025, was $54.7 million, a significant increase of $70.5 million compared to cash used in operating activities of $15.8 million during the same period in 2024[190]. - Cash used in investing activities increased to $228.3 million for the nine months ended September 30, 2025, compared to $0.8 million in the same period in 2024, primarily due to a net increase in marketable securities purchases of $287.6 million[191]. - Cash provided by financing activities decreased to $9.6 million for the nine months ended September 30, 2025, down from $508.4 million in the same period in 2024, largely due to the absence of proceeds from the issuance of 2029 Notes[192]. Assets and Liabilities - As of September 30, 2025, the company had cash and cash equivalents of $255.6 million, marketable securities of $309.6 million, and accounts receivable of $76.2 million[184]. - As of September 30, 2025, the estimated fair value of the company's 2029 Notes was $895.6 million, with an outstanding principal amount of $661.3 million[208]. - The company had approximately $77.1 million of open purchase order commitments as of September 30, 2025, the majority of which are due within one year[200]. Research and Development - The company expects an increase in research and development costs as it hires additional personnel for new product development and enhancements[160]. - The company recorded an impairment charge of $2.5 million related to capitalized internal-use software in development for the Zio Watch in the second quarter of 2025[186]. Market and Economic Factors - Macroeconomic factors such as inflation and supply chain disruptions are impacting hospitals' financial conditions, potentially affecting the company's revenue[152]. - The gross margin improved from 2023 to 2024, with ongoing efforts to enhance annual gross margins despite macroeconomic challenges[159]. - The company anticipates increased costs of revenue due to rising material and labor costs, partially offset by volume purchase discounts and process improvements[159]. Strategic Initiatives - The company provided iRhythm Services to over 8 million patients and collected over 2 billion hours of curated heartbeat data since receiving FDA clearance[143]. - The company has adapted its services to increase home enrollment, allowing patients to use the Zio patch without visiting healthcare facilities[153]. - The company entered into a Technology License Agreement with BioIS, paying an upfront fee of $15.0 million and purchasing $40.0 million in convertible promissory notes[188]. - The company intends to use the remainder of the net proceeds from the 2029 Notes offering for general corporate purposes[194]. - The 2029 Capped Calls are expected to reduce potential dilution to common stock upon conversion of the 2029 Notes[209]. Interest Rate Sensitivity - A hypothetical 10% change in interest rates would have impacted interest income by $0.6 million for the three months ended September 30, 2025[207]. Foreign Currency Risk - As of September 30, 2025, there had not been a material change in foreign currency risk information disclosed in the Annual Report for the fiscal year ended December 31, 2024[210].

Revenue Performance - Revenues for Q3 2025 decreased by $6.1 million, or 4%, to $132.0 million compared to Q3 2024, primarily due to a 15% decrease in coiled tubing revenue [96]. - Revenues for the first nine months of 2025 increased by $17.1 million, or 4%, to $429.7 million, primarily driven by a $13.4 million increase in cementing revenue, which rose by 9% [108]. Profitability - Adjusted gross profit for Q3 2025 was $20.3 million, down approximately $4.4 million from the previous year, reflecting declines in revenue and increased costs [99]. - Adjusted gross profit for the first nine months of 2025 rose by approximately $2.9 million to $74.1 million, reflecting the revenue and cost changes [110]. - Adjusted gross profit for the three months ended September 30, 2025, was $20.3 million, down from $24.7 million in 2024, reflecting a decrease of approximately 17.5% [127]. Expenses - Cost of revenues decreased by $1.7 million, or 2%, to $111.7 million in Q3 2025, driven by a $2.2 million decrease in materials and a $1.3 million decrease in employee-related costs [98]. - General and administrative expenses increased by $0.4 million to $12.8 million in Q3 2025, mainly due to higher professional fees and employee-related costs [99]. - General and administrative expenses increased by $2.8 million to $39.9 million for the first nine months of 2025, mainly due to a $2.4 million rise in employee-related costs [110]. - Non-operating expenses rose by $906,000 to $13.4 million in Q3 2025 compared to the same period in 2024 [95]. - Non-operating expenses increased by $2.9 million to $40.2 million for the first nine months of 2025, primarily due to a $1.5 million write-off of deferred financing costs [114]. Net Loss - Net loss for Q3 2025 was $14.6 million, an increase of 44% compared to a net loss of $10.1 million in Q3 2024 [95]. - Net loss increased by $4.5 million, or 44%, to $14.6 million for Q3 2025, while Adjusted EBITDA decreased by $4.6 million, or 33%, to $9.6 million [106]. - Net loss for the first nine months of 2025 decreased by $0.1 million, or less than 1%, to $32.1 million, while Adjusted EBITDA increased by $1.2 million, or 3%, to $40.3 million [116]. - For the three months ended September 30, 2025, the company reported a net loss of $14.6 million compared to a net loss of $10.1 million for the same period in 2024 [124]. Cash Flow and Liquidity - Net cash used in operating activities for the first nine months of 2025 was $5.1 million, an increase of $3.3 million compared to $1.8 million in the same period of 2024 [148]. - Net cash used in investing activities increased to $13.2 million in the first nine months of 2025 from $11.2 million in 2024, primarily due to a $1.8 million increase in cash purchases of property and equipment [149]. - Net cash provided by financing activities was $6.6 million in the first nine months of 2025, compared to a net cash outflow of $2.1 million in the same period of 2024, reflecting a $62.9 million increase in proceeds from revolving credit facilities [150]. - The company had a total liquidity position of $40.3 million as of September 30, 2025, which includes $14.4 million in cash and cash equivalents [130]. Debt and Financing - Total debt as of September 30, 2025, was $363.3 million, an increase from $350.0 million at the end of the previous period [132]. - The company has outstanding borrowings of $63.3 million under the 2025 ABL Credit Facility as of September 30, 2025 [132]. - The company expects a reduction in its borrowing base under the 2025 ABL Credit Facility by approximately $2.2 million on October 31, 2025, and further reductions in subsequent months [130]. - The company refinanced and replaced the 2018 ABL Credit Facility with the 2025 ABL Credit Facility, which has a maximum revolving facility amount of $125.0 million [143]. - The 2025 ABL Credit Agreement includes a financial covenant requiring a minimum fixed charge coverage ratio of 1.10 to 1.00, tested quarterly when availability is below $10.0 million [145]. - The company was in compliance with all covenants in the 2025 ABL Credit Agreement as of September 30, 2025 [145]. Market Conditions - The average WTI oil price fell to $65.82 per barrel in Q3 2025, a decline of approximately 8% from $71.78 per barrel in Q1 2025, contributing to decreased activity levels [90]. - Natural gas prices averaged approximately $3.45 per MMBtu for the first nine months of 2025, an improvement from $2.19 per MMBtu in 2024, yet activity in natural gas-levered basins remained low [89]. - The average rig count in the Haynesville increased from 31 rigs in Q4 2024 to 39 rigs by the end of Q3 2025, indicating a slight recovery in activity [89]. - The company anticipates revenue and earnings to decline in Q4 2025 due to seasonal slowdowns and ongoing market challenges [93]. Capital Expenditures - The planned capital expenditure budget for 2025 is expected to be between $15 million and $25 million, focusing on supporting current operations and growth initiatives [129].