PART I - FINANCIAL INFORMATION [FORWARD LOOKING STATEMENTS](index=4&type=section&id=FORWARD%20LOOKING%20STATEMENTS) This section outlines the company's forward-looking statements, including planned store activities for Fiscal 2025, business priorities, financial expectations, and significant risk factors - **Planned Store Activities (Fiscal 2025):** - Open approximately **5-15 American Eagle stores**[12](index=12&type=chunk) - Open approximately **30 Aerie and OFFLINE stores**[12](index=12&type=chunk) - Remodel approximately **90-100 American Eagle and Aerie stores** in the U.S and Canada[12](index=12&type=chunk) - Net closure of approximately **35-40 American Eagle stores**, primarily in North America, at lease expiration[12](index=12&type=chunk) - **Key Risk Factors:** - Changes in global economic and financial conditions, impacting consumer confidence and spending[13](index=13&type=chunk)[14](index=14&type=chunk) - Effect of inflation on business[13](index=13&type=chunk)[14](index=14&type=chunk) - Potential for additional write-downs, impairment, or restructuring charges[13](index=13&type=chunk)[14](index=14&type=chunk) - Inability to anticipate and respond to changing consumer preferences and fashion trends[13](index=13&type=chunk)[14](index=14&type=chunk) - Risks associated with operating in a highly competitive industry and pricing pressures[13](index=13&type=chunk)[14](index=14&type=chunk) - Impact of events beyond control (natural disasters, public health crises, political crises)[13](index=13&type=chunk)[14](index=14&type=chunk) - Risks related to international operations, merchandise sourcing, and tariffs[13](index=13&type=chunk)[14](index=14&type=chunk) - Failure to manage inventory properly[13](index=13&type=chunk)[14](index=14&type=chunk) - Reliance on key personnel and increases in labor costs[13](index=13&type=chunk)[14](index=14&type=chunk) [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets provide a snapshot of the company's financial position, showing an increase in total assets to $4.06 billion as of August 2, 2025 Total Assets (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $4,061,032 | | February 1, 2025 | $3,830,775 | | August 3, 2024 | $3,540,316 | Key Balance Sheet Changes (August 2, 2025 vs. February 1, 2025, in thousands) | Metric | February 1, 2025 | August 2, 2025 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $308,962 | $126,780 | $(182,182) | | Merchandise inventory | $636,655 | $718,337 | $81,682 | | Operating lease right-of-use assets | $1,295,400 | $1,604,457 | $309,057 | | Long-term debt, net | $— | $203,000 | $203,000 | | Total stockholders' equity | $1,766,860 | $1,544,610 | $(222,250) | [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show the company's financial performance, with a significant decrease in net income for the 26-week period ended August 2, 2025 13 Weeks Ended August 2, 2025 vs. August 3, 2024 (in thousands, except per share amounts) | Metric | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :----------- | | Total net revenue | $1,283,675 | $1,291,058 | -0.6% | | Gross profit | $499,962 | $498,896 | +0.2% | | Operating income | $103,085 | $101,109 | +1.9% | | Net income | $77,633 | $77,264 | +0.5% | | Diluted net income per common share | $0.45 | $0.39 | +15.4% | 26 Weeks Ended August 2, 2025 vs. August 3, 2024 (in thousands, except per share amounts) | Metric | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------------------------- | :------------- | :------------- | :----------- | | Total net revenue | $2,373,275 | $2,434,925 | -2.5% | | Gross profit | $822,383 | $963,134 | -14.6% | | Impairment and restructuring charges | $17,119 | $— | N/A | | Operating income | $17,903 | $178,944 | -90.0% | | Net income | $12,734 | $145,014 | -91.2% | | Diluted net income per common share | $0.07 | $0.73 | -90.4% | [Consolidated Statements of Comprehensive Income](index=9&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The consolidated statements of comprehensive income show a significant increase for the 13-week period and a substantial decrease for the 26-week period ended August 2, 2025 13 Weeks Ended August 2, 2025 vs. August 3, 2024 (in thousands) | Metric | August 2, 2025 | August 3, 2024 | Change (YoY) | | :----------------------------- | :------------- | :------------- | :----------- | | Net income | $77,633 | $77,264 | +0.5% | | Foreign currency translation gain (loss) | $7,459 | $(23,549) | N/A | | Comprehensive income | $85,092 | $53,715 | +58.4% | 26 Weeks Ended August 2, 2025 vs. August 3, 2024 (in thousands) | Metric | August 2, 2025 | August 3, 2024 | Change (YoY) | | :----------------------------- | :------------- | :------------- | :----------- | | Net income | $12,734 | $145,014 | -91.2% | | Foreign currency translation gain (loss) | $21,744 | $(22,861) | N/A | | Comprehensive income | $34,478 | $122,153 | -71.8% | [Consolidated Statements of Stockholders' Equity](index=10&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) The consolidated statements of stockholders' equity detail a decrease in total equity to $1.54 billion for the 26 weeks ended August 2, 2025, driven by share repurchases Total Stockholders' Equity (26 Weeks Ended, in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $1,544,610 | | February 1, 2025 | $1,766,860 | | August 3, 2024 | $1,694,366 | Key Changes in Stockholders' Equity (26 Weeks Ended August 2, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Net income | $12,734 | | Accelerated share repurchase (including excise tax) | $(201,849) | | Repurchase of common stock (public programs) | $(31,301) | | Cash dividends declared and dividend equivalents | $(42,824) | | Other comprehensive income | $21,744 | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show a significant shift to cash used for operating activities and increased cash used for investing activities in the current 26-week period Cash Flow Summary (26 Weeks Ended August 2, 2025 vs. August 3, 2024, in thousands) | Activity | August 2, 2025 | August 3, 2024 | Change (YoY) | | :------------------------------------ | :------------- | :------------- | :----------- | | Net cash (used for) provided by operating activities | $(26,859) | $40,140 | $(66,999) | | Net cash (used for) investing activities | $(74,113) | $(5,329) | $(68,784) | | Net cash (used for) financing activities | $(82,701) | $(194,500) | $111,799 | | Net change in cash and cash equivalents | $(182,182) | $(162,257) | $(19,925) | | Cash and cash equivalents - end of period | $126,780 | $191,837 | -33.9% | - **Key Drivers of Cash Flow Changes (26 Weeks Ended August 2, 2025):** - Operating activities: **Negative cash flow** primarily due to changes in merchandise inventory, operating lease assets/liabilities, and other assets/liabilities[25](index=25&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Investing activities: **Increased capital expenditures ($132.6 million)** and lower proceeds from sale of available-for-sale investments ($50.0 million vs $100.0 million)[25](index=25&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) - Financing activities: **Significant accelerated share repurchases ($201.8 million)** and other share repurchases ($31.3 million), partially offset by $485.3 million proceeds from revolving line of credit and $282.3 million principal payments[25](index=25&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [Notes to Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the financial statements, covering significant accounting policies and specific financial line items [Note 1 Interim Financial Statements](index=14&type=section&id=Note%201%20Interim%20Financial%20Statements) The interim financial statements are condensed and should be read in conjunction with the Fiscal 2024 Form 10-K, noting the company's brand portfolio and operational seasonality - **Brands Operated:** American Eagle®, Aerie®, Todd Snyder New York, and Unsubscribed[29](index=29&type=chunk) - **Geographic Presence:** Stores in the United States, Canada, and Mexico; merchandise available in over 30 countries via license partners; robust e-commerce business[29](index=29&type=chunk) - **Seasonality:** Operations are seasonal, with a large portion of total net revenue and operating income occurring in the **third and fourth fiscal quarters** due to back-to-school and year-end holiday selling seasons[30](index=30&type=chunk) [Note 2 Summary of Significant Accounting Policies](index=14&type=section&id=Note%202%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the company's key accounting policies, including consolidation, fiscal year definition, use of estimates, and recent accounting pronouncements - **Reportable Segments:** **American Eagle and Aerie**, with Todd Snyder, Unsubscribed, and Quiet Platforms included in "Corporate and Other"[31](index=31&type=chunk)[82](index=82&type=chunk) - **Fiscal Year Definition:** A 52- or 53-week year that ends on the Saturday nearest to January 31; Fiscal 2025 refers to the 52-week period ending January 31, 2026[32](index=32&type=chunk) - **Recent Accounting Pronouncements:** - **ASU 2023-09 (Improvements to Income Tax Disclosures):** Effective Fiscal 2025, requires increased transparency in tax disclosures[34](index=34&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - **ASU 2024-03 (Disaggregation of Income Statement Expenses):** Effective Fiscal 2027, requires additional disclosure for specific expense categories[34](index=34&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - **ASU 2025-05 (Financial Instruments - Credit Losses):** Effective Fiscal 2026, provides a practical expedient for estimating expected credit losses; not expected to have a material impact[34](index=34&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk) - **Foreign Currency Translation:** Assets and liabilities are translated at balance sheet date exchange rates, while revenues and expenses are at monthly average rates, with translation adjustments reported in other comprehensive income[38](index=38&type=chunk) - **Merchandise Inventory Valuation:** Valued at the **lower of average cost or net realizable value**, utilizing the retail method and including design and sourcing costs[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk) - **Revenue Recognition:** Revenue is recorded for store sales upon customer purchase and for e-commerce upon customer receipt, with loyalty point revenue deferred until redemption or expiration[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) - **Cost of Sales Components:** Includes merchandise costs, Quiet Platforms' service costs, and buying, occupancy, and warehousing costs[75](index=75&type=chunk)[77](index=77&type=chunk) - **Selling, General and Administrative Expenses (SG&A) Components:** Includes compensation for stores and corporate, advertising, supplies, communication, travel, and leasing costs[78](index=78&type=chunk)[79](index=79&type=chunk) [Note 3 Cash and Cash Equivalents and Short-term Investments](index=20&type=section&id=Note%203%20Cash%20and%20Cash%20Equivalents%20and%20Short-term%20Investments) This note provides a breakdown of cash, cash equivalents, and short-term investments, showing a significant decrease in total cash and cash equivalents as of August 2, 2025 Cash and Short-term Investments (in thousands) | Category | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :-------------------------- | :------------- | :--------------- | :------------- | | Cash and cash equivalents | $126,780 | $308,962 | $191,837 | | Short-term investments | $— | $50,000 | $— | | Total cash and short-term investments | $126,780 | $358,962 | $191,837 | [Note 4 Fair Value Measurements](index=20&type=section&id=Note%204%20Fair%20Value%20Measurements) This note describes the company's fair value measurements, categorizing financial instruments into a three-tier hierarchy and detailing non-financial asset impairment charges - **Fair Value Hierarchy:** Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), Level 3 (unobservable inputs)[86](index=86&type=chunk) - **Cash and Cash Equivalents:** Classified as **Level 1** financial assets[85](index=85&type=chunk)[87](index=87&type=chunk) - **Non-Financial Asset Impairment (26 Weeks Ended August 2, 2025):** - Total asset impairment charges: **$15.3 million**[89](index=89&type=chunk) - Related to ROU assets: **$10.4 million**[89](index=89&type=chunk) - Related to fixed assets: **$4.9 million**[89](index=89&type=chunk) - **Goodwill Impairment:** **No indicators of goodwill impairment** were present during the 13 and 26 weeks ended August 2, 2025, or August 3, 2024[92](index=92&type=chunk) [Note 5 Earnings per Share (EPS)](index=22&type=section&id=Note%205%20Earnings%20per%20Share%20(EPS)) This note reconciles basic and diluted weighted average shares for EPS calculation, showing a significant decrease in diluted EPS for the 26-week period due to lower net income Diluted EPS (13 Weeks Ended) | Date | Amount | | :--- | :--- | | August 2, 2025 | $0.45 | | August 3, 2024 | $0.39 | Diluted EPS (26 Weeks Ended) | Date | Amount | | :--- | :--- | | August 2, 2025 | $0.07 | | August 3, 2024 | $0.73 | - **Share Repurchases Impact:** The company completed an accelerated share repurchase (ASR) agreement, repurchasing **18.4 million shares** at an average price of $10.86, contributing to a reduction in diluted shares outstanding[95](index=95&type=chunk) [Note 6 Property and Equipment, Net](index=22&type=section&id=Note%206%20Property%20and%20Equipment%2C%20Net) This note details the composition of property and equipment, net, which increased to $773.87 million as of August 2, 2025, reflecting ongoing capital investments Property and Equipment, Net (in thousands) | Metric | August 2, 2025 | February 1, 2025 | August 3, 2024 | | :------------------------------------ | :------------- | :--------------- | :------------- | | Property and equipment, at cost | $2,623,140 | $2,571,285 | $2,474,484 | | Less: Accumulated depreciation and impairment | $(1,849,268) | $(1,820,021) | $(1,752,291) | | Property and equipment, net | $773,872 | $751,264 | $722,193 | [Note 7 Goodwill and Intangible Assets, Net](index=23&type=section&id=Note%207%20Goodwill%20and%20Intangible%20Assets%2C%20Net) This note provides a breakdown of goodwill and definite-lived intangible assets, with goodwill remaining stable and no impairment indicators present Goodwill, Net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $225,231 | | February 1, 2025 | $225,079 | | August 3, 2024 | $225,213 | Intangible Assets, Net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $40,674 | | February 1, 2025 | $42,449 | | August 3, 2024 | $44,241 | - **Impairment:** **No indicators of goodwill impairment** or definite-lived intangible asset impairment were present during the reported periods[53](index=53&type=chunk)[92](index=92&type=chunk) [Note 8 Long-Term Debt, Net](index=23&type=section&id=Note%208%20Long-Term%20Debt%2C%20Net) This note details the company's revolving credit facility, showing $203.0 million in outstanding borrowings as of August 2, 2025, under its $700 million facility - **Revolving Credit Facility:** - Maximum capacity: **$700 million**[98](index=98&type=chunk) - Expiration: **June 24, 2027**[98](index=98&type=chunk) Outstanding Borrowings (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $203,000 | | August 3, 2024 | $— | Interest Expense (in thousands) | Period | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | 13 Weeks Ended | $1,800 | $— | | 26 Weeks Ended | $2,100 | $— | [Note 9 Share-Based Payments](index=23&type=section&id=Note%209%20Share-Based%20Payments) This note outlines the company's share-based compensation, with total expense for the 26 weeks ended August 2, 2025, at $27.1 million Total Share-Based Compensation Expense (in thousands) | Period | August 2, 2025 | August 3, 2024 | | :-------------------- | :------------- | :------------- | | 13 Weeks Ended | $6,500 | $6,800 | | 26 Weeks Ended | $27,100 | $27,400 | Stock Options Outstanding (August 2, 2025) | Metric | Amount | | :--- | :--- | | Options (in thousands) | 5,199 | | Weighted Average Exercise Price | $16.24 | | Weighted Average Remaining Contractual Term | 4.1 years | Non-Vested Restricted Stock Units (August 2, 2025, shares in thousands) | Type | Shares | Weighted Average Grant Date Fair Value | | :--- | :--- | :--- | | Time-Based Restricted Stock Units | 3,136 | $15.14 | | Performance-Based Restricted Stock Units | 2,459 | $16.07 | - **Unrecognized Compensation Expense (August 2, 2025):** - Stock option awards: **$1.2 million** (over 2.3 years)[105](index=105&type=chunk)[109](index=109&type=chunk) - Time-based restricted stock unit awards: **$38.5 million** (over 2.3 years)[105](index=105&type=chunk)[109](index=109&type=chunk) - Performance-based restricted stock unit awards: **$7.6 million** (over 2.0 years)[105](index=105&type=chunk)[109](index=109&type=chunk) [Note 10 Income Taxes](index=25&type=section&id=Note%2010%20Income%20Taxes) This note discusses income tax provisions, with the effective tax rate for the 26 weeks ended August 2, 2025, increasing to 23.9% Effective Income Tax Rate (13 Weeks Ended) | Date | Rate | | :--- | :--- | | August 2, 2025 | 23.4% | | August 3, 2024 | 25.4% | | Change (YoY) | -2.0 percentage points | Effective Income Tax Rate (26 Weeks Ended) | Date | Rate | | :--- | :--- | | August 2, 2025 | 23.9% | | August 3, 2024 | 22.1% | | Change (YoY) | +1.8 percentage points | - **Impact of OBBBA:** The estimated tax implications of the H.R.1 Reconciliation Act (OBBBA) were **immaterial** for the 13 and 26 weeks ended August 2, 2025[111](index=111&type=chunk)[112](index=112&type=chunk) - **Unrecognized Tax Benefits:** Reasonably possible decrease of approximately **$6.8 million** over the next twelve months due to settlements or expiration of statutes of limitations, with an immaterial impact on the annual effective tax rate[115](index=115&type=chunk) [Note 11 Legal Proceedings](index=26&type=section&id=Note%2011%20Legal%20Proceedings) The company is involved in various legal proceedings incidental to its business but believes their resolution will not have a material adverse effect - **Assessment of Legal Matters:** Resolution of currently pending legal matters is **not expected to have a material adverse effect** on consolidated financial position, results of operations, or cash flows[116](index=116&type=chunk) - **Environmental Proceedings:** **No environmental matters requiring disclosure** (monetary sanctions of $1.0 million or more) for this period[220](index=220&type=chunk) [Note 12 Segment Reporting](index=26&type=section&id=Note%2012%20Segment%20Reporting) This note provides financial information by reportable segment, showing a decrease in American Eagle's net revenue and an increase in Aerie's for the 13-week period - **Reportable Segments:** **American Eagle and Aerie**, with "Other" including Todd Snyder, Unsubscribed, and Quiet Platforms[117](index=117&type=chunk) - **Key Metric for CODM:** **Adjusted operating income** (or operating income if no adjustments) is used by the CEO to analyze segment results and allocate resources[119](index=119&type=chunk) Segment Net Revenue (13 Weeks Ended August 2, 2025 vs. August 3, 2024, in thousands) | Segment | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------- | :------------- | :------------- | :----------- | | American Eagle | $800,406 | $827,638 | -3.3% | | Aerie | $429,084 | $415,646 | +3.2% | | Other | $61,523 | $57,457 | +7.1% | Segment Net Revenue (26 Weeks Ended August 2, 2025 vs. August 3, 2024, in thousands) | Segment | August 2, 2025 | August 3, 2024 | Change (YoY) | | :-------------- | :------------- | :------------- | :----------- | | American Eagle | $1,494,271 | $1,552,382 | -3.7% | | Aerie | $788,872 | $788,298 | +0.1% | | Other | $105,494 | $112,441 | -6.2% | Geographical Net Revenue (13 Weeks Ended August 2, 2025 vs. August 3, 2024, in thousands) | Region | August 2, 2025 | August 3, 2024 | Change (YoY) | | :------------ | :------------- | :------------- | :----------- | | United States | $1,083,813 | $1,088,870 | -0.5% | | Foreign | $199,862 | $202,188 | -1.2% | Geographical Net Revenue (26 Weeks Ended August 2, 2025 vs. August 3, 2024, in thousands) | Region | August 2, 2025 | August 3, 2024 | Change (YoY) | | :------------ | :------------- | :------------- | :----------- | | United States | $2,005,326 | $2,048,604 | -2.2% | | Foreign | $367,949 | $386,321 | -4.8% | [Note 13 Impairment and Restructuring Charges](index=28&type=section&id=Note%2013%20Impairment%20and%20Restructuring%20Charges) This note details impairment and restructuring charges of $17.1 million recorded during the 26 weeks ended August 2, 2025, primarily related to fulfillment center closures Total Impairment and Restructuring Charges (26 Weeks Ended August 2, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Total impairment and restructuring charges | $17,119 | - **Breakdown of Charges:** - Long-lived asset impairment: **$15.3 million** (primarily related to closing two fulfillment centers, including $10.4 million for ROU assets and $4.9 million for property and equipment)[127](index=127&type=chunk) - Employee severance: **$1.8 million** (primarily related to closing two fulfillment centers)[127](index=127&type=chunk) - **Prior Periods:** **No impairment and restructuring charges** were recorded for the 13 weeks ended August 2, 2025, or for the 13 and 26 weeks ended August 3, 2024[126](index=126&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, offering a detailed analysis of performance for the recent 13 and 26-week periods [Introduction](index=30&type=section&id=Introduction) This section serves as a supplement to the Fiscal 2024 Form 10-K MD&A, providing an understanding of the company's operations and financial condition - **Purpose:** To help readers understand the Company, its operations, and business environment, supplementing the Fiscal 2024 Form 10-K MD&A[129](index=129&type=chunk) [Executive Overview](index=30&type=section&id=Executive%20Overview) The company is a global specialty retailer of clothing, accessories, and personal care products under its American Eagle and Aerie brands, with two reportable segments - **Core Business:** Leading global specialty retailer offering high-quality, on-trend clothing, accessories, and personal care products under **American Eagle® and Aerie® brands**[132](index=132&type=chunk) - **Reportable Segments:** **American Eagle and Aerie**[133](index=133&type=chunk) - **Key Performance Metric for CEO:** **Adjusted operating income (loss)**[133](index=133&type=chunk) [Key Performance Indicators](index=30&type=section&id=Key%20Performance%20Indicators) Management evaluates comparable sales, omni-channel sales performance metrics, gross profit, operating income, and cash flow to assess performance - **Key Performance Indicators:** Comparable Sales, Omni-Channel Sales Performance (average unit retail price, total transactions, units per transaction, consolidated comparable traffic), Gross Profit, Operating Income, Cash Flow and Liquidity[134](index=134&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) - **Comparable Sales Definition:** Measures sales growth for stores and channels open at least one year, adjusted for 53-week fiscal years[134](index=134&type=chunk) - **Gross Profit Definition:** Difference between total net revenue and cost of sales, which includes merchandise costs, Quiet Platforms' costs, and buying, occupancy, and warehousing costs[137](index=137&type=chunk) [Current Trends and Outlook](index=31&type=section&id=Current%20Trends%20and%20Outlook) The company's results were negatively impacted by macroeconomic challenges, though demand improved in the second quarter, stabilizing margins [Macroeconomic Conditions](index=31&type=section&id=Macroeconomic%20Conditions) Macroeconomic challenges and global inflationary pressures negatively impacted revenue and increased margin pressure, though demand improved in the second quarter - **Negative Impacts:** Macroeconomic challenges and global inflationary pressures constrained revenue and **increased margin pressure** to clear excess spring and summer inventory[141](index=141&type=chunk) - **Q2 Improvement:** Second quarter demand increased, coupled with lower than expected promotional activity, enabling **stabilization of margins** and delivery of operating income slightly ahead of last year for the 13 weeks ended August 2, 2025[142](index=142&type=chunk) - **Tariff Impact:** Recent changes in legislative and regulatory developments, including tariffs and other trade policies, have introduced **additional uncertainty** and may affect margins and operations[143](index=143&type=chunk) [Omni-Channel Capabilities](index=31&type=section&id=Omni-Channel%20Capabilities) The company operates stores in the US, Canada, and Mexico, with a robust e-commerce business and significant investments in digital capabilities - **Global Presence:** Operates stores in the United States, Canada, and Mexico, with merchandise available in more than 30 countries through a global network of license partners, and a robust e-commerce business[147](index=147&type=chunk) - **Investment Focus:** Investments in building technologies and digital capabilities, specifically in **mobile technology, digital marketing, and improving the digital customer experience**[148](index=148&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's financial performance for the 13 and 26 weeks ended August 2, 2025, compared to the prior year [Overview (13 weeks)](index=32&type=section&id=Overview%20(13%20weeks)) For the 13 weeks ended August 2, 2025, total net revenue decreased by 1% to $1.284 billion, while operating income increased by 2% to $103 million - **Total Net Revenue (13 Weeks):** **Decreased 1%** from $1.291 billion to $1.284 billion[150](index=150&type=chunk) - American Eagle revenue: **Decreased 3%** year-over-year[150](index=150&type=chunk) - Aerie revenue: **Increased 3%** year-over-year[150](index=150&type=chunk) - **Gross Profit (13 Weeks):** $500 million, **increased by 30 basis points** year-over-year to 38.9% as a percentage of total revenue[150](index=150&type=chunk) - **Operating Income (13 Weeks):** **Increased 2% to $103 million** and increased by 20 basis points to 8.0% as a percentage of total revenue[150](index=150&type=chunk) - **Diluted EPS (13 Weeks):** **Increased to $0.45** for the 13 weeks ended August 2, 2025, compared to $0.39 for the 13 weeks ended August 3, 2024[150](index=150&type=chunk) - **Share Repurchases (Year-to-Date):** The company completed **$231 million, or 20.4 million shares**, in share repurchases, which is approximately a 10% reduction in diluted shares outstanding[150](index=150&type=chunk) [Comparison of the 13 weeks ended August 2, 2025 to the 13 weeks ended August 3, 2024](index=33&type=section&id=Comparison%20of%20the%2013%20weeks%20ended%20August%202%2C%202025%20to%20the%2013%20weeks%20ended%20August%203%2C%202024) This section provides a detailed comparison of financial performance for the 13-week periods, showing a slight revenue decrease but improved gross margin and operating income [Total Net Revenue](index=33&type=section&id=Total%20Net%20Revenue) Total net revenue decreased by 1% to $1.284 billion, driven by a 3% decrease in American Eagle revenue, partially offset by a 3% increase in Aerie's net revenue - **Total Net Revenue:** **Decreased 1% to $1.284 billion**; store and digital revenue both decreased 1%, and total comparable sales decreased by 1%[153](index=153&type=chunk) - **American Eagle Revenue:** **Decreased 3% to $800.4 million**, driven by lower average unit retail price, leading to lower transaction value; comparable sales decreased 3%[154](index=154&type=chunk) - **Aerie Revenue:** **Increased 3% to $429.1 million**, driven by increased traffic and transactions across channels; comparable sales increased 3%[154](index=154&type=chunk)[155](index=155&type=chunk) - **Other Revenue:** **Increased 7% to $61.5 million**, primarily attributable to higher revenue from Todd Snyder and Unsubscribed[154](index=154&type=chunk)[155](index=155&type=chunk) [Gross Profit](index=34&type=section&id=Gross%20Profit) Gross profit remained flat year-over-year at $500 million, but gross margin improved by 30 basis points to 38.9% due to lower promotional activity Gross Profit (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $499,962 | | August 3, 2024 | $498,896 | | Change (YoY) | +0.2% | Gross Margin | Date | Percentage | | :--- | :--- | | August 2, 2025 | 38.9% | | August 3, 2024 | 38.6% | | Change (YoY) | +30 basis points | - **Driver:** Gross profit was flat year-over-year, with the decline in revenue offset by **lower promotional activity**[156](index=156&type=chunk) [Selling, General and Administrative Expenses](index=34&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) SG&A expenses decreased by 1% to $342.2 million, remaining flat at 26.7% as a percentage of net revenue, due to lower compensation costs Selling, General and Administrative Expenses (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $342,211 | | August 3, 2024 | $345,313 | | Change (YoY) | -1% | SG&A as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 26.7% | | August 3, 2024 | 26.7% | | Change (YoY) | 0 basis points | - **Drivers:** Primarily driven by **lower compensation costs** as a result of recent restructuring and lower incentive costs, partially offset by investments in advertising[159](index=159&type=chunk) [Depreciation and Amortization Expense](index=35&type=section&id=Depreciation%20and%20Amortization%20Expense) Depreciation and amortization expense increased by 4% to $54.7 million, primarily driven by new and renovated American Eagle stores Total Depreciation and Amortization Expense (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $54,666 | | August 3, 2024 | $52,474 | | Change (YoY) | +4% | D&A as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 4.2% | | August 3, 2024 | 4.1% | | Change (YoY) | +10 basis points | - **Driver:** The increase in expense was primarily driven by **new and renovated American Eagle stores**[161](index=161&type=chunk) [Operating Income](index=35&type=section&id=Operating%20Income) Total operating income increased by 2% to $103.1 million, improving by 20 basis points to 8.0% as a percentage of net revenue Total Operating Income (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $103,085 | | August 3, 2024 | $101,109 | | Change (YoY) | +2% | Operating Income as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 8.0% | | August 3, 2024 | 7.8% | | Change (YoY) | +20 basis points | - **Drivers:** The increase in operating income was primarily driven by **higher gross profit and lower SG&A expenses**, partially offset by increased depreciation and amortization expense[162](index=162&type=chunk) - **Segment Performance:** - American Eagle: Operating income **decreased 5% to $138.2 million**, primarily due to an $11 million decrease in gross profit[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - Aerie: Operating income **increased 7% to $74.6 million**, primarily due to a $12 million increase in gross profit[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) [Interest Expense (Income), net](index=35&type=section&id=Interest%20Expense%20(Income)%2C%20net) Interest expense (income), net, shifted from income to expense, increasing by $2.6 million to $1.9 million due to interest on Credit Facility borrowings Interest Expense (Income), net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $1,919 | | August 3, 2024 | $(730) | | Change (YoY) | +363% | - **Driver:** The increase in interest expense (income), net is primarily related to **$2 million in interest expense on increased borrowings** year-over-year[166](index=166&type=chunk) [Other (Income), net](index=36&type=section&id=Other%20(Income)%2C%20net) Other (income), net, decreased by 90% to $(172) thousand, compared to $(1,715) thousand in the prior year Other (Income), net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $(172) | | August 3, 2024 | $(1,715) | | Change (YoY) | -90% | [Provision for Income Taxes](index=36&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes decreased by 10% to $23.7 million, with the effective tax rate decreasing to 23.4% Provision for Income Taxes (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $23,705 | | August 3, 2024 | $26,290 | | Change (YoY) | -10% | Effective Tax Rate | Date | Rate | | :--- | :--- | | August 2, 2025 | 23.4% | | August 3, 2024 | 25.4% | | Change (YoY) | -2.0 percentage points | - **Drivers:** The change in the effective tax rate, as compared to the prior period, is primarily due to **tax audit adjustments and foreign currency adjustments**[168](index=168&type=chunk) [Net Income](index=36&type=section&id=Net%20Income) Net income remained flat year-over-year at $77.6 million, while diluted net income per common share increased to $0.45 due to share repurchases Net Income (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $77,633 | | August 3, 2024 | $77,264 | | Change (YoY) | 0% | Net Income as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 6.0% | | August 3, 2024 | 6.0% | | Change (YoY) | 0 basis points | Diluted Net Income per Common Share | Date | Amount | | :--- | :--- | | August 2, 2025 | $0.45 | | August 3, 2024 | $0.39 | | Change (YoY) | +15.4% | - **Driver for EPS Increase:** The increase in net income per diluted share was due to a **reduction in diluted shares outstanding** as a result of recent share repurchases[169](index=169&type=chunk) [Comparison of the 26 weeks ended August 2, 2025 to the 26 weeks ended August 3, 2024](index=36&type=section&id=Comparison%20of%20the%2026%20weeks%20ended%20August%202%2C%202025%20to%20the%2026%20weeks%20ended%20August%203%2C%202024) This section provides a detailed comparison of financial performance for the 26-week periods, showing significant decreases in revenue, gross profit, and operating income [Total Net Revenue](index=36&type=section&id=Total%20Net%20Revenue) Total net revenue decreased by 3% to $2.373 billion, with American Eagle's revenue decreasing by 4% while Aerie's remained flat - **Total Net Revenue:** **Decreased 3% to $2.373 billion**; digital revenue decreased 1%, store revenue decreased 3%, and total comparable sales decreased by 2%[170](index=170&type=chunk) - **American Eagle Revenue:** **Decreased 4% to $1.494 billion**, driven by lower average unit retail, partially offset by increased units per transaction; comparable sales decreased 3%[171](index=171&type=chunk) - **Aerie Revenue:** **Flat year-over-year at $788.9 million**, with lower average unit retail price offset by 11 net new store openings[171](index=171&type=chunk)[172](index=172&type=chunk) - **Other Revenue:** **Decreased 6% to $105.5 million**, primarily attributable to planned lower revenue from Quiet Platforms[171](index=171&type=chunk)[172](index=172&type=chunk) [Gross Profit](index=37&type=section&id=Gross%20Profit) Gross profit decreased by 15% to $822.4 million, and gross margin declined by 480 basis points to 34.7% due to lower sales and increased promotional activity Gross Profit (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $822,383 | | August 3, 2024 | $963,134 | | Change (YoY) | -15% | Gross Margin | Date | Percentage | | :--- | :--- | | August 2, 2025 | 34.7% | | August 3, 2024 | 39.5% | | Change (YoY) | -480 basis points | - **Drivers:** The 15% decrease in gross profit was primarily driven by a **decrease of $123 million in merchandise margin** year over year due to lower sales and increased promotional activity[173](index=173&type=chunk) [Selling, General and Administrative Expenses](index=37&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) SG&A expenses increased slightly to $681.0 million, and as a percentage of net revenue, they increased by 80 basis points to 28.7% Selling, General and Administrative Expenses (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $680,998 | | August 3, 2024 | $678,806 | | Change (YoY) | 0% | SG&A as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 28.7% | | August 3, 2024 | 27.9% | | Change (YoY) | +80 basis points | - **Drivers:** The increase in SG&A expense was primarily related to an **increase in advertising** year-over-year, partially offset by lower compensation costs[176](index=176&type=chunk) [Impairment & Restructuring Charges](index=38&type=section&id=Impairment%20%26%20Restructuring%20Charges) The company recorded $17.1 million in impairment and restructuring charges during the 26 weeks ended August 2, 2025, related to supply chain optimization Impairment and Restructuring Charges (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $17,119 | | August 3, 2024 | $— | | Change (YoY) | +100% | - **Breakdown of Charges:** - **$10.4 million** of impairment related to ROU assets[178](index=178&type=chunk) - **$4.9 million** related to fixed assets[178](index=178&type=chunk) - **$1.8 million** of employee severance[178](index=178&type=chunk) - **Reason:** Primarily related to **closing two fulfillment centers** as part of its supply chain network optimization project[127](index=127&type=chunk)[178](index=178&type=chunk) [Depreciation and Amortization Expense](index=38&type=section&id=Depreciation%20and%20Amortization%20Expense) Depreciation and amortization expense increased by 1% to $106.4 million, primarily driven by new and renovated American Eagle stores Total Depreciation and Amortization Expense (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $106,363 | | August 3, 2024 | $105,384 | | Change (YoY) | +1% | D&A as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 4.5% | | August 3, 2024 | 4.3% | | Change (YoY) | +20 basis points | - **Driver:** The increase in expense was primarily driven by **new and renovated American Eagle stores**[179](index=179&type=chunk) [Operating Income](index=38&type=section&id=Operating%20Income) Total operating income significantly decreased by 90% to $17.9 million, primarily due to lower gross profit and impairment charges Total Operating Income (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $17,903 | | August 3, 2024 | $178,944 | | Change (YoY) | -90% | Operating Income as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 0.8% | | August 3, 2024 | 7.3% | | Change (YoY) | -650 basis points | - **Drivers:** The decrease in operating income was primarily driven by **lower gross profit**, and an increase in impairment and restructuring charges[180](index=180&type=chunk) - **Segment Performance:** - American Eagle: Operating income **decreased 34% to $187.9 million**, primarily due to an $89 million decline in gross profit[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - Aerie: Operating income **decreased 42% to $75.4 million**, primarily due to a $46 million decline in gross profit and an $11 million increase in SG&A expenses[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) [Interest Expense (Income), net](index=38&type=section&id=Interest%20Expense%20(Income)%2C%20net) Interest expense (income), net, shifted from income to expense, increasing by $5.9 million to $1.7 million due to Credit Facility borrowings and lower cash balances Interest Expense (Income), net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $1,700 | | August 3, 2024 | $(4,168) | | Change (YoY) | +141% | - **Drivers:** Primarily attributable to a **$3 million increase in interest expense** from borrowings on our Credit Facility, as well as a **$3 million reduction in interest income** from lower cash balances[184](index=184&type=chunk) [Other (Income), net](index=39&type=section&id=Other%20(Income)%2C%20net) Other (income), net, decreased by 83% to $(523) thousand, compared to $(3,111) thousand in the prior year Other (Income), net (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $(523) | | August 3, 2024 | $(3,111) | | Change (YoY) | -83% | [Provision for Income Taxes](index=39&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes significantly decreased by 90% to $4.0 million, with the effective tax rate increasing to 23.9% Provision for Income Taxes (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $3,992 | | August 3, 2024 | $41,209 | | Change (YoY) | -90% | Effective Tax Rate | Date | Rate | | :--- | :--- | | August 2, 2025 | 23.9% | | August 3, 2024 | 22.1% | | Change (YoY) | +1.8 percentage points | - **Drivers:** The change in the effective tax rate, as compared to the prior period, is primarily due to **share-based payments and tax audit adjustments**[186](index=186&type=chunk) [Net Income](index=39&type=section&id=Net%20Income) Net income significantly decreased by 91% to $12.7 million, with diluted net income per common share decreasing to $0.07 Net Income (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $12,734 | | August 3, 2024 | $145,014 | | Change (YoY) | -91% | Net Income as a Percentage of Net Revenue | Date | Percentage | | :--- | :--- | | August 2, 2025 | 0.5% | | August 3, 2024 | 6.0% | | Change (YoY) | -550 basis points | Diluted Net Income per Common Share | Date | Amount | | :--- | :--- | | August 2, 2025 | $0.07 | | August 3, 2024 | $0.73 | | Change (YoY) | -90.4% | - **Driver for EPS Decrease:** The decrease in net income was attributable to the factors noted above, partially offset by a **reduction in diluted shares outstanding** from recent share repurchases[187](index=187&type=chunk) [Non-GAAP Information](index=39&type=section&id=Non-GAAP%20Information) This section provides a reconciliation of GAAP to non-GAAP financial measures, showing an adjusted operating income of $35.0 million for the 26-week period - **Non-GAAP Measures:** Operating income and net income per diluted share are presented on an adjusted basis, **excluding impairment and restructuring charges**[188](index=188&type=chunk)[191](index=191&type=chunk) GAAP to Non-GAAP Reconciliation (26 Weeks Ended August 2, 2025, in thousands, except per share amounts) | Metric | GAAP Basis | Add: Impairment and restructuring charges | Tax effect of the above | Non-GAAP Basis | | :-------------------- | :--------- | :---------------------------------------- | :---------------------- | :------------- | | Operating income | $17,903 | $17,119 | N/A | $35,022 | | Net income | $12,734 | $13,130 | N/A | $25,864 | | Earnings per Diluted Share | $0.07 | $0.08 | N/A | $0.15 | [International Operations](index=40&type=section&id=International%20Operations) The company expands its brands internationally through third-party licensing partners, who operate 365 licensed retail stores and concessions in approximately 30 countries - **International Licensing:** The company has agreements with multiple third-party operators to expand its brands internationally, granting rights to sell, promote, market, and/or distribute products[193](index=193&type=chunk) - **Licensed Retail Stores:** As of August 2, 2025, international licensing partners operated in **365 licensed retail stores and concessions** in approximately 30 countries[193](index=193&type=chunk) - **Company-Owned International Stores (August 2, 2025):** The company had **99 Company-owned stores in Canada and 92 in Mexico**[194](index=194&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is primarily supported by cash flow from operations and a $700 million asset-based revolving credit facility Liquidity Measures (August 2, 2025, in thousands) | Metric | Amount | | :--- | :--- | | Working Capital | $487,717 | | Current Ratio | 1.62 | - **Funding Sources:** Historically, uses of cash have been funded with cash flow from operations and existing cash on hand, supplemented by a **$700 million asset-based revolving credit facility**[196](index=196&type=chunk) Cash and Cash Equivalents (in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $126,780 | | August 3, 2024 | $191,837 | - **Credit Facility Borrowings (August 2, 2025):** **$203.0 million** in borrowings under the Credit Facility[196](index=196&type=chunk) [Cash Flows (Used For) Provided By Operating Activities](index=41&type=section&id=Cash%20Flows%20(Used%20For)%20Provided%20By%20Operating%20Activities) For the 26 weeks ended August 2, 2025, the company used $26.9 million in cash from operating activities, a significant decrease from the prior year Net Cash (Used For) Provided By Operating Activities (26 Weeks Ended, in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $(26,859) | | August 3, 2024 | $40,140 | | Change (YoY) | $(66,999) (decrease) | - **Primary Source/Outflow:** Major source of cash from operations was **merchandise sales**, and the primary outflow was for the payment of operational costs[199](index=199&type=chunk) [Cash Flows (Used For) Investing Activities](index=41&type=section&id=Cash%20Flows%20(Used%20For)%20Investing%20Activities) For the 26 weeks ended August 2, 2025, investing activities used $74.1 million in cash, a substantial increase from the prior year due to higher capital expenditures Net Cash (Used For) Investing Activities (26 Weeks Ended, in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $(74,113) | | August 3, 2024 | $(5,329) | | Change (YoY) | $(68,784) (increase in cash used) | - **Drivers (26 Weeks Ended August 2, 2025):** Primarily consisted of **capital expenditures of $132.6 million**, partially offset by the sale of available-for-sale investments of $50.0 million[200](index=200&type=chunk) [Cash Flows (Used for) Financing Activities](index=41&type=section&id=Cash%20Flows%20(Used%20for)%20Financing%20Activities) For the 26 weeks ended August 2, 2025, financing activities used $82.7 million in cash, driven by significant share repurchases and dividends Net Cash (Used For) Financing Activities (26 Weeks Ended, in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $(82,701) | | August 3, 2024 | $(194,500) | | Change (YoY) | $111,799 (decrease in cash used) | - **Drivers (26 Weeks Ended August 2, 2025):** - Accelerated share repurchase (including excise tax): **$(201,849) thousand**[25](index=25&type=chunk)[201](index=201&type=chunk) - Repurchase of common stock (publicly announced programs, including excise tax): **$(31,301) thousand**[25](index=25&type=chunk)[201](index=201&type=chunk) - Cash dividends paid: **$(42,824) thousand**[25](index=25&type=chunk)[201](index=201&type=chunk) - Net proceeds from revolving line of credit: **$203,000 thousand** ($485.3 million proceeds - $282.3 million principal payments)[25](index=25&type=chunk)[201](index=201&type=chunk) [Revolving Credit Facility](index=41&type=section&id=Revolving%20Credit%20Facility) The company maintains a $700 million senior secured asset-based revolving credit facility, with $203.0 million outstanding as of August 2, 2025 - **Credit Facility Details:** Amended and restated Credit Agreement provides senior secured asset-based revolving credit for loans and letters of credit up to **$700 million**, expiring on June 24, 2027[203](index=203&type=chunk) Outstanding Borrowings and Letters of Credit (in thousands) | Metric | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | Outstanding borrowings | $203,000 | $— | | Outstanding stand-by letters of credit | $12,000 | $12,000 | - **Compliance:** As of August 2, 2025, the Company was **in compliance** with the terms of the Credit Agreement[205](index=205&type=chunk) [Capital Expenditures for Property and Equipment](index=42&type=section&id=Capital%20Expenditures%20for%20Property%20and%20Equipment) Capital expenditures for the 26 weeks ended August 2, 2025, totaled $132.6 million, a 37% increase from the prior year Total Capital Expenditures (26 Weeks Ended, in thousands) | Date | Amount | | :--- | :--- | | August 2, 2025 | $132,565 | | August 3, 2024 | $96,945 | | Change (YoY) | +37% | Key Investment Areas (26 Weeks Ended August 2, 2025, in thousands) | Category | Amount | Change (YoY) | | :--- | :--- | :--- | | Store, fixture, and visual investments | $66,649 | +9% | | Information technology initiatives | $22,765 | -5% | | Supply chain infrastructure | $20,947 | +140% | | Other home office projects | $22,204 | +598% | - **Fiscal 2025 Outlook:** Expects capital expenditures to be approximately **$275 million**, related to continued support of expansion efforts, stores, information technology upgrades, and investments in supply chain[206](index=206&type=chunk) Store Openings and Remodels (26 Weeks Ended) | Category | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | New Stores | 18 | 18 | | Remodels | 25 | 36 | [Share Repurchases](index=42&type=section&id=Share%20Repurchases) The Board authorized an additional 50 million shares for repurchase, and the company completed an accelerated share repurchase agreement for $200 million - **Share Repurchase Authorization:** On March 11, 2025, the Board authorized **50 million additional shares** for repurchase, bringing the total remaining authorized shares to 54.0 million through February 3, 2029[208](index=208&type=chunk) - **Public Program Repurchases (26 Weeks Ended August 2, 2025):** Approximately **2.0 million shares** were repurchased as part of the publicly announced share repurchase program[208](index=208&type=chunk) - **Accelerated Share Repurchase (ASR) Agreement:** - Entered into on March 14, 2025, for **$200 million**[209](index=209&type=chunk)[210](index=210&type=chunk) - Cumulative repurchases under ASR totaled **18.4 million shares** at an average price of $10.86[209](index=209&type=chunk)[210](index=210&type=chunk) - **Employee Share Repurchases (26 Weeks Ended August 2, 2025):** Approximately **0.7 million shares** repurchased from employees for $7.9 million for tax payments related to share-based payments[211](index=211&type=chunk) [Dividends](index=43&type=section&id=Dividends) The Board declared a quarterly cash dividend of $0.125 per share on June 4, 2025, with future dividends at the discretion of the Board - **Quarterly Cash Dividend:** A quarterly cash dividend of **$0.125 per share** was declared on June 4, 2025, and paid on July 25, 2025[213](index=213&type=chunk) - **Future Dividends:** Payment of future dividends is at the **discretion of the Board** and is based on future earnings, cash flow, financial condition, and other relevant factors[214](index=214&type=chunk) [Critical Accounting Estimates](index=43&type=section&id=Critical%20Accounting%20Estimates) This section refers to the critical accounting policies and estimates detailed in the Fiscal 2024 Form 10-K, with any updates discussed in the current report's notes - **Reference:** Critical accounting policies and estimates are described in Part II, Item 7 of the **Fiscal 2024 Form 10-K**[215](index=215&type=chunk) - **Updates:** Any new accounting policies or updates to existing policies due to new accounting pronouncements are discussed in the notes to the Consolidated Financial Statements in this Quarterly Report[215](index=215&type=chunk) - **Nature of Estimates:** Management makes judgments and estimates about amounts reflected in the Consolidated Financial Statements based on historical experience and available information, acknowledging that **actual results could differ**[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk exposure is foreign exchange rate risk, mainly from its Canadian and Mexican operations - **Primary Market Risk:** Primarily exposed to **foreign exchange rate risk** through Canadian and Mexican operations[216](index=216&type=chunk) Unrealized Foreign Currency Translation Gain (in millions) | Period | Amount | | :--- | :--- | | 13 Weeks Ended August 2, 2025 | $7 | | 26 Weeks Ended August 2, 2025 | $22 | - **Market Risk Profile:** **Unchanged** as of August 2, 2025, from the Fiscal 2024 Form 10-K[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of August 2, 2025, with no material changes in internal control over financial reporting - **Effectiveness of Disclosure Controls:** Management concluded that disclosure controls and procedures were **effective** as of August 2, 2025, in the timely and accurate recording, processing, summarizing, and reporting of material financial and non-financial information[218](index=218&type=chunk) - **Changes in Internal Control over Financial Reporting:** There has been **no change** in internal control over financial reporting during the most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting[219](index=219&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings but believes their resolution will not materially affect its consolidated financial position or results of operations - **Assessment of Legal Matters:** The company believes that the resolution of currently pending matters will **not individually or in the aggregate have a material adverse effect** on its consolidated financial position, results of operations, or consolidated cash flows[220](index=220&type=chunk) - **Environmental Proceedings:** **No environmental proceedings** with a governmental entity as a party, where monetary sanctions of $1.0 million or more are reasonably believed, were identified for this period[220](index=220&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors affecting the company's business and financial results as disclosed in the Fiscal 2024 Form 10-K - **No Material Changes:** There have been **no material changes** to the risk factors as disclosed in the Fiscal 2024 Form 10-K[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during the 13 weeks ended August 2, 2025, totaling 3,951,000 shares Issuer Purchases of Equity Securities (13 Weeks Ended August 2, 2025) | Metric | Amount | | :--- | :--- | | Total Number of Shares Purchased | 3,951,000 | | Average Price Paid Per Share | $10.86 | | Total Number of Shares Purchased as Part of Publicly Announced Programs | 3,949,152 | | Maximum Number of Shares that May Yet Be Purchased Under the Program | 50,084,301 | - **ASR Agreement Impact:** The total shares purchased include those from an **Accelerated Share Repurchase (ASR) agreement**, where the company paid $200.0 million and received 18.4 million shares cumulatively[223](index=223&type=chunk) - **Repurchase Authorization:** On March 11, 2025, the Board authorized the public repurchase of an **additional 50 million shares** under the existing share repurchase program, which expires on February 3, 2029[223](index=223&type=chunk) [Item 3. Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is marked as "N/A," indicating no defaults upon senior securities for the reporting period - Status: **Not Applicable (N/A)**[9](index=9&type=chunk) [Item 4. Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is marked as "N/A," indicating no mine safety disclosures for the reporting period - Status: **Not Applicable (N/A)**[9](index=9&type=chunk) [Item 5. Other Information](index=44&type=section&id=Item%205.%20Other%20Information) This section states that no directors or officers adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" during the fiscal quarter - **No directors or officers** adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 105b-1 trading arrangement" during the fiscal quarter ended August 2, 2025[224](index=224&type=chunk) [Item 6. Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Quarterly Report on Form 10-Q, including certifications by the CEO and CFO, and XBRL formatted financial statements - **Key Exhibits:** Includes **certifications by Jay L. Schottenstein (CEO) and Michael A. Mathias (CFO)**, and XBRL formatted financial statements (Consolidated Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, and Cash Flows)[226](index=226&type=chunk) SIGNATURES [SIGNATURES](index=46&type=section&id=SIGNATURES) This section contains the required signatures for the Quarterly Report on Form 10-Q, confirming its submission by American Eagle Outfitters, Inc - **Signatories:** The report is signed by **Jay L. Schottenstein (Chief Executive Officer) and Michael A. Mathias (Executive Vice President, Chief Financial Officer)** on behalf of American Eagle Outfitters, Inc[228](index=228&type=chunk)

PART I — FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents the company's unaudited condensed consolidated financial statements and accompanying notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Summarizes the company's assets, liabilities, and stockholders' equity at specific points in time Balance Sheet Summary | Metric | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Cash and cash equivalents | $8,694.4 | $4,193.1 | $4,756.9 | | Merchandise inventories, net | $484.9 | $560.0 | $480.2 | | Assets held for sale | $177.0 | $2.1 | — | | Digital assets | $528.6 | — | — | | Total assets | $10,341.1 | $5,536.3 | $5,875.4 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | | Total current liabilities | $829.9 | $783.5 | $665.4 | | Long-term debt | $4,160.9 | $12.4 | $6.6 | | Total liabilities | $5,164.7 | $1,152.9 | $945.6 | | Total stockholders' equity | $5,176.4 | $4,383.4 | $4,929.8 | | Total liabilities and stockholders' equity | $10,341.1 | $5,536.3 | $5,875.4 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's revenues, expenses, and net income or loss over specific periods Operating Results | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $972.2 | $798.3 | $1,704.6 | $1,680.1 | | Gross profit | $283.1 | $248.8 | $535.9 | $493.3 | | Operating income (loss) | $66.4 | $(22.0) | $55.6 | $(72.6) | | Interest income, net | $(79.6) | $(39.5) | $(136.5) | $(54.4) | | Unrealized gain on digital assets | $(28.6) | — | $(28.6) | — | | Income (loss) before income taxes | $174.6 | $17.5 | $222.9 | $(18.2) | | Net income (loss) | $168.6 | $14.8 | $213.4 | $(17.5) | | Basic EPS | $0.38 | $0.04 | $0.48 | $(0.05) | | Diluted EPS | $0.31 | $0.04 | $0.42 | $(0.05) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Reports net income alongside other comprehensive income items like foreign currency adjustments Comprehensive Income (Loss) | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $168.6 | $14.8 | $213.4 | $(17.5) | | Foreign currency translation adjustment | $14.1 | $0.1 | $21.4 | $0.4 | | Net change in unrealized gain on available-for-sale securities | — | — | — | $0.2 | | Total comprehensive income (loss) | $182.7 | $14.9 | $234.8 | $(16.9) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines cash movements from operating, investing, and financing activities over specific periods Cash Flow Summary | Cash Flow Activity | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | | Net cash flows provided by (used in) operating activities | $309.9 | $(41.2) | | Net cash flows (used in) provided by investing activities | $(516.0) | $268.2 | | Net cash flows provided by financing activities | $4,153.3 | $3,050.2 | | Increase in cash, cash equivalents and restricted cash | $3,944.1 | $3,278.1 | | Cash, cash equivalents and restricted cash at end of period | $8,733.9 | $4,217.0 | [Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Shows changes in the company's equity accounts, including stock issuance and retained earnings Stockholders' Equity Changes | Metric | February 1, 2025 (millions) | August 2, 2025 (millions) | February 3, 2024 (millions) | August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Class A Common Stock (Shares) | 447.0 | 447.6 | 305.7 | 426.5 | | Class A Common Stock (Amount) | $0.2 | $0.2 | $0.1 | $0.2 | | Additional Paid-in Capital | $5,105.1 | $5,116.9 | $1,634.9 | $4,696.5 | | Accumulated Other Comprehensive Loss | $(94.0) | $(72.6) | $(83.6) | $(83.0) | | Retained Earnings (Loss) | $(81.5) | $131.9 | $(212.8) | $(230.3) | | Total Stockholders' Equity | $4,929.8 | $5,176.4 | $1,338.6 | $4,383.4 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [1. General Information](index=8&type=section&id=1.%20General%20Information) Outlines the company's business, operational structure, and the seasonal nature of its sales - GameStop Corp is a Delaware corporation established in 1996, operating as a leading specialty retailer of games and entertainment products through stores and e-commerce platforms[20](index=20&type=chunk) - Effective May 4, 2025, the Company operates in three geographic segments: United States, Australia, and Europe, following the **divestiture of Canadian operations in Q2 fiscal 2025**[21](index=21&type=chunk) - The business is seasonal, with the **majority of net sales occurring in the fourth quarter**, which includes the holiday selling season[23](index=23&type=chunk) [2. Summary of Significant Accounting Policies](index=9&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Details key accounting policies, including a new investment policy and the treatment of digital assets - The Board of Directors authorized a **revised investment policy** on March 18, 2025, delegating authority to an Investment Committee to manage the Company's securities portfolio[30](index=30&type=chunk) - On March 25, 2025, **Bitcoin was approved as a treasury reserve asset**, allowing a portion of cash or future debt/equity issuances to be invested in Bitcoin, classified as Digital assets and recorded at fair value[31](index=31&type=chunk) - During Q1 fiscal 2025, management approved plans to **divest operations in Canada and France**, reclassifying related assets and liabilities as held for sale and recording impairment expenses[34](index=34&type=chunk)[36](index=36&type=chunk) - The Company adopted ASU No 2023-08 for crypto assets on a modified retrospective basis effective February 2, 2025, requiring **digital assets to be measured at fair value** with gains/losses reported in the statement of operations[38](index=38&type=chunk) - During Q2 fiscal 2025, the Company **purchased 4,710 Bitcoin for $500 million**, recognizing an unrealized gain of **$28.6 million** as of August 2, 2025[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [3. Revenue](index=11&type=section&id=3.%20Revenue) Breaks down net sales by product category and details remaining performance obligations Net Sales by Product Category | Product Category | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Hardware and accessories | $592.1 | $451.2 | $937.4 | $956.5 | | Software | $152.5 | $207.7 | $328.1 | $447.4 | | Collectibles | $227.6 | $139.4 | $439.1 | $276.2 | | Total net sales | $972.2 | $798.3 | $1,704.6 | $1,680.1 | - The Company recognizes revenue over time for extended warranties and the GameStop Pro rewards program, with unredeemed customer liabilities generally redeemed within one year[47](index=47&type=chunk) Remaining Performance Obligations | Performance Obligation | August 2, 2025 (millions) | August 3, 2024 (millions) | | :--- | :--- | :--- | | Unredeemed customer liabilities | $113.4 | $140.2 | | Extended warranties | $48.0 | $59.9 | | Subscriptions | $41.9 | $48.1 | | Total performance obligations | $203.3 | $248.2 | [4. Fair Value Measurements](index=12&type=section&id=4.%20Fair%20Value%20Measurements) Categorizes assets and liabilities measured at fair value on recurring and nonrecurring bases - Assets and liabilities measured at fair value on a recurring basis include cash equivalents, marketable securities, digital assets, and foreign currency contracts, categorized into Level 1 and Level 2[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) Fair Value of Assets and Liabilities | Asset/Liability | Fair Value (August 2, 2025, millions) | Fair Value (August 3, 2024, millions) | Fair Value (February 1, 2025, millions) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Time deposits (Level 1) | $23.2 | $11.1 | $18.0 | | Digital assets (Level 1) | $528.6 | — | — | | Company-owned life insurance (Level 2) | $0.1 | $0.2 | $0.1 | | Total assets | $551.9 | $11.3 | $18.1 | | **Liabilities** | | | | | Nonqualified deferred compensation (Level 2) | $0.1 | $0.1 | $0.1 | | Total liabilities | $0.1 | $0.1 | $0.1 | - Assets measured at fair value on a nonrecurring basis primarily include property and equipment, operating lease ROU assets, and other intangible assets[62](index=62&type=chunk) [5. Debt](index=15&type=section&id=5.%20Debt) Details the company's outstanding debt, including significant new convertible senior notes Outstanding Debt Summary | Debt Type | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | Total outstanding debt | $4,160.9 | $23.4 | $16.9 | | Current portion of short-term debt | $0.0 | $11.0 | $10.3 | | Debt related to French disposal group (held for sale) | $13.2 | — | — | - On April 1, 2025, the Company completed a private offering of **$1,500 million** aggregate principal amount of 0.00% Convertible Senior Notes due 2030[67](index=67&type=chunk)[69](index=69&type=chunk) - On June 17, 2025, the Company completed a private offering of **$2,250 million** aggregate principal amount of 0.00% Convertible Senior Notes due 2032[74](index=74&type=chunk)[76](index=76&type=chunk) - Both series of Convertible Notes are **general unsecured obligations**, do not bear regular interest, and mature in 2030 and 2032, respectively[68](index=68&type=chunk)[75](index=75&type=chunk) [6. Commitments and Contingencies](index=17&type=section&id=6.%20Commitments%20and%20Contingencies) Discloses outstanding letters of credit and the status of legal proceedings - As of August 2, 2025, the Company had approximately **$8.7 million in outstanding stand-by letters of credit** and other bank guarantees[81](index=81&type=chunk) - The Company is subject to various legal proceedings but does not believe any will **materially affect its financial condition**, results of operations, or liquidity[82](index=82&type=chunk) [7. Earnings Per Share](index=17&type=section&id=7.%20Earnings%20Per%20Share) Provides the calculation for basic and diluted earnings per share, including dilutive securities - Basic EPS is calculated by dividing net income by weighted-average common shares outstanding, while diluted EPS includes potentially dilutive securities[83](index=83&type=chunk) Weighted-Average Shares Calculation | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | | :--- | :--- | :--- | :--- | :--- | | Weighted-average common shares outstanding | 447.4 | 386.4 | 447.3 | 346.2 | | Dilutive effect of stock-based awards | 0.6 | 0.8 | 0.6 | — | | Dilutive effect of Convertible Notes | 98.5 | — | 58.3 | — | | Weighted-average diluted common shares | 546.5 | 387.2 | 506.2 | 346.2 | [8. Segment Information](index=18&type=section&id=8.%20Segment%20Information) Presents financial performance data for the company's geographic operating segments - Effective May 4, 2025, GameStop operates in three geographic segments: **United States, Australia, and Europe**, following the divestiture of Canadian operations[86](index=86&type=chunk) Segment Performance (Three Months Ended August 2, 2025) | Segment (Three Months Ended August 2, 2025) | Net Sales (millions) | Gross Profit (millions) | Operating Income (Loss) (millions) | | :--- | :--- | :--- | :--- | | United States | $724.6 | $215.3 | $63.7 | | Canada | — | — | — | | Australia | $140.9 | $41.8 | $6.0 | | Europe | $106.7 | $26.0 | $(3.3) | | Total | $972.2 | $283.1 | $66.4 | Segment Performance (Six Months Ended August 2, 2025) | Segment (Six Months Ended August 2, 2025) | Net Sales (millions) | Gross Profit (millions) | Operating Income (Loss) (millions) | | :--- | :--- | :--- | :--- | | United States | $1,262.1 | $409.2 | $97.3 | | Canada | $38.2 | $10.0 | $(22.2) | | Australia | $222.8 | $68.7 | $0.6 | | Europe | $181.5 | $48.0 | $(20.1) | | Total | $1,704.6 | $535.9 | $55.6 | [9. Assets Held for Sale](index=20&type=section&id=9.%20Assets%20Held%20for%20Sale) Details assets and liabilities related to the planned divestiture of operations in France - Management approved a plan to **divest operations in France** during Q1 2025, reclassifying related assets and liabilities as held for sale[95](index=95&type=chunk) French Disposal Group (August 2, 2025) | French Disposal Group (August 2, 2025, millions) | Amount | | :--- | :--- | | Total assets held for sale (net) | $177.0 | | Total liabilities held for sale | $151.7 | - An impairment loss of **$17.2 million** was recognized in Q1 fiscal 2025 for the French disposal group, followed by a **$2.1 million asset impairment reversal** in Q2 fiscal 2025[95](index=95&type=chunk) [10. Income Taxes](index=21&type=section&id=10.%20Income%20Taxes) Reports the company's income tax expense and effective tax rate for the reporting periods Income Tax Summary | Period | Income Tax Expense (millions) | Effective Income Tax Rate | | :--- | :--- | :--- | | Three Months Ended August 2, 2025 | $6.0 | 3.4% | | Three Months Ended August 3, 2024 | $2.7 | 15.4% | | Six Months Ended August 2, 2025 | $9.5 | 4.3% | | Six Months Ended August 3, 2024 | $(0.7) | 3.8% | - The effective income tax rates were primarily influenced by forecasted income taxes in certain jurisdictions and the impact of the Company's valuation allowance[98](index=98&type=chunk)[99](index=99&type=chunk) - The recently enacted One Big Beautiful Bill Act (OBBBA) is **not expected to have a material effect** on the estimated fiscal 2025 effective tax rate[100](index=100&type=chunk) [11. Subsequent Events](index=21&type=section&id=11.%20Subsequent%20Events) Announces a warrant dividend distribution to common stockholders declared after the reporting period - On September 9, 2025, the Board declared a **warrant dividend distribution** to common stockholders, with holders receiving one warrant for every ten shares[101](index=101&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=22&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Provides management's perspective on financial performance, business priorities, liquidity, and capital resources [OVERVIEW](index=22&type=section&id=OVERVIEW) Describes the company's core business, geographic segments, and fiscal year structure - GameStop is a leading specialty retailer of games and entertainment products, operating in the United States, Australia, and Europe after **divesting Canadian operations** in Q2 fiscal 2025[103](index=103&type=chunk)[104](index=104&type=chunk) - The Company's fiscal year is 52 or 53 weeks, with the **majority of net sales occurring in the fourth quarter** due to the holiday selling season[105](index=105&type=chunk) [BUSINESS PRIORITIES](index=22&type=section&id=BUSINESS%20PRIORITIES) Outlines strategic goals including shareholder value maximization and retail business optimization - GameStop's strategy focuses on **maximizing shareholder value** through potential investments/acquisitions and optimizing its retail business for profitability[106](index=106&type=chunk) - The revised Investment Policy allows investments in cash, fixed income, equity securities, and certain cryptocurrencies like **Bitcoin**[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk) - Retail business objectives include achieving omnichannel excellence, cost containment, and **expanding the addressable market** through new product offerings[114](index=114&type=chunk)[115](index=115&type=chunk) - Ongoing efforts to achieve sustained profitability include **evaluating international assets**, divesting underperforming operations, and optimizing the store portfolio[112](index=112&type=chunk) [CONSOLIDATED RESULTS OF OPERATIONS](index=24&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Analyzes key changes in net sales, gross profit, and operating expenses over comparative periods Consolidated Operating Results Comparison | Metric | Three Months Ended August 2, 2025 (millions) | Three Months Ended August 3, 2024 (millions) | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $972.2 | $798.3 | $173.9 | 21.8% | | Gross profit | $283.1 | $248.8 | $34.3 | 13.8% | | Selling, general and administrative expenses | $218.8 | $270.8 | $(52.0) | (19.2)% | | Operating income (loss) | $66.4 | $(22.0) | $88.4 | (401.8)% | | Net income | $168.6 | $14.8 | $153.8 | NM | | **Metric** | **Six Months Ended August 2, 2025 (millions)** | **Six Months Ended August 3, 2024 (millions)** | **Change ($)** | **Change (%)** | | Net sales | $1,704.6 | $1,680.1 | $24.5 | 1.5% | | Gross profit | $535.9 | $493.3 | $42.6 | 8.6% | | Selling, general and administrative expenses | $446.9 | $565.9 | $(119.0) | (21.0)% | | Operating income (loss) | $55.6 | $(72.6) | $128.2 | 176.6% | | Net income (loss) | $213.4 | $(17.5) | $230.9 | NM | - **Net sales increased by 21.8%** for the three months and 1.5% for the six months, driven by growth in hardware, accessories, and collectibles[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - **Gross profit margin improved to 31.4%** for the six months due to a shift towards higher-margin collectibles and pre-owned hardware/accessories[124](index=124&type=chunk)[125](index=125&type=chunk) - **SG&A expenses decreased significantly by 21.0%** (six months) due to cost reduction efforts, store closures, and international divestitures[126](index=126&type=chunk)[127](index=127&type=chunk)[128](index=128&type=chunk)[129](index=129&type=chunk) - The Company recognized a **$2.1 million asset impairment reversal** in Q2 2025 but a total asset impairment expense of **$33.4 million** for the six months[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - **Net interest income increased significantly** due to higher cash balances from recent equity and convertible debt issuances[133](index=133&type=chunk) - An **unrealized gain of $28.6 million on digital assets** was recognized following the purchase of 4,710 Bitcoin[134](index=134&type=chunk)[135](index=135&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=27&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Details the company's cash position, financing activities, and cash flow performance Liquidity Summary | Metric | August 2, 2025 (millions) | August 3, 2024 (millions) | February 1, 2025 (millions) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $8,694.4 | $4,193.1 | $4,756.9 | | Marketable securities | — | $11.1 | $18.0 | | Cash, cash equivalents and marketable securities | $8,694.4 | $4,204.2 | $4,774.9 | - The Company's primary liquidity sources are **cash on hand ($8,694.4 million)** and cash from operations[141](index=141&type=chunk) - Strategic operating alternatives, including divestitures and uses for excess cash like **Bitcoin investments**, are continuously evaluated[143](index=143&type=chunk)[145](index=145&type=chunk) - The Company completed multiple At-the-Market (ATM) equity offerings in fiscal 2024, raising aggregate gross proceeds of approximately **$3,470.4 million**[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - In April and June 2025, the Company completed private offerings of **$1,500 million and $2,250 million** of 0.00% Convertible Senior Notes[152](index=152&type=chunk)[153](index=153&type=chunk)[155](index=155&type=chunk) Cash Flow Activity Comparison | Cash Flow Activity | Six Months Ended August 2, 2025 (millions) | Six Months Ended August 3, 2024 (millions) | Change (millions) | | :--- | :--- | :--- | :--- | | Operating activities | $309.9 | $(41.2) | $351.1 | | Investing activities | $(516.0) | $268.2 | $(784.2) | | Financing activities | $4,153.3 | $3,050.2 | $1,103.1 | | Increase in cash, cash equivalents and restricted cash | $3,944.1 | $3,278.1 | $666.0 | - **Cash flows from operating activities significantly improved to $309.9 million** (provided) from $(41.2) million (used) in the prior year[157](index=157&type=chunk)[158](index=158&type=chunk) - **Cash flows used in investing activities increased to $(516.0) million**, primarily due to the **$500 million purchase of Bitcoin** in Q2 fiscal 2025[159](index=159&type=chunk) - **Cash flows from financing activities increased to $4,153.3 million**, mainly from the issuance of Convertible Notes[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk) [CRITICAL ACCOUNTING POLICIES](index=29&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES) Confirms no material changes to critical accounting policies from the 2024 Annual Report - There have been **no material changes** to the Company's critical accounting policies from those disclosed in its 2024 Annual Report on Form 10-K[164](index=164&type=chunk) [OFF-BALANCE SHEET ARRANGEMENTS](index=30&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) States the company has no material off-balance sheet arrangements - As of August 2, 2025, the Company had **no material off-balance sheet arrangements**[165](index=165&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=30&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Confirms no material changes to market risk disclosures since the 2024 Annual Report - **No material changes** to quantitative and qualitative disclosures about market risk have occurred since the 2024 Annual Report on Form 10-K[166](index=166&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=30&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of disclosure controls and reports no changes in internal controls [Evaluation of Disclosure Controls and Procedures](index=30&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Asserts that disclosure controls and procedures were effective as of the end of the period - The Company's disclosure controls and procedures were **effective as of August 2, 2025**, providing reasonable assurance that required disclosures are appropriately reported[167](index=167&type=chunk) [Changes in Internal Control Over Financial Reporting](index=30&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) Reports no material changes in internal control over financial reporting during the quarter - There were **no material changes** in internal control over financial reporting during the second quarter of fiscal 2025[168](index=168&type=chunk) PART II — OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=31&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) Refers to disclosures on legal matters within the financial statement notes - Legal proceedings information is incorporated by reference from Note 6, 'Commitments and Contingencies - Legal Proceedings,' in Part I, Item 1 of this report[171](index=171&type=chunk) [ITEM 1A. RISK FACTORS](index=31&type=section&id=ITEM%201A.%20RISK%20FACTORS) Highlights new risks related to Bitcoin investments and substantial indebtedness from convertible notes [Risks Related to Our Investment Policy and Investment Portfolio](index=31&type=section&id=Risks%20Related%20to%20Our%20Investment%20Policy%20and%20Investment%20Portfolio) Details risks from Bitcoin investments, including price volatility, security, and regulatory uncertainty - Investment in Bitcoin exposes the Company to significant risks, including **price volatility, limited liquidity, and regulatory uncertainty**, which could adversely impact financial results[173](index=173&type=chunk) - Bitcoin holdings **do not pay interest**, and generating cash depends on selling Bitcoin or implementing income-generating strategies, which may not be successful[173](index=173&type=chunk) - **Security breaches, cyberattacks, or loss of private keys** could result in the loss of some or all Bitcoin holdings, materially affecting financial condition[173](index=173&type=chunk) [Risks Related to Our Outstanding Notes](index=31&type=section&id=Risks%20Related%20to%20Our%20Outstanding%20Notes) Discusses risks from substantial convertible note debt, including serviceability and potential dilution - The Company has incurred **substantial indebtedness ($4.2 billion in Convertible Notes)**, which may decrease business flexibility and limit access to capital[174](index=174&type=chunk) - The Convertible Notes are obligations of the Company only, and the **ability to service this debt depends on cash flow from subsidiaries**, which may be subject to restrictions[175](index=175&type=chunk)[176](index=176&type=chunk) - The Company **may not have sufficient cash flow to settle conversions** of Convertible Notes in cash or repurchase them, potentially leading to default[177](index=177&type=chunk)[179](index=179&type=chunk) - Conversion of Convertible Notes may **dilute existing stockholders' ownership interest** or depress the price of Class A common stock[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=33&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) States no unregistered sales of equity securities occurred during the period - **No unregistered sales** of equity securities or use of proceeds occurred during the period[184](index=184&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=33&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) Indicates no defaults upon senior securities occurred during the period - **No defaults** upon senior securities occurred[185](index=185&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=33&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) States that mine safety disclosures are not applicable to the company - Mine safety disclosures are **not applicable** to the Company[186](index=186&type=chunk) [ITEM 5. OTHER INFORMATION](index=33&type=section&id=ITEM%205.%20OTHER%20INFORMATION) Provides updates on outstanding shares, trading plans, tax law, and a warrant dividend [Outstanding Shares and Ownership](index=33&type=section&id=Outstanding%20Shares%20and%20Ownership) Reports the number of outstanding Class A common shares and their holder distribution - As of September 5, 2025, approximately **447.7 million shares of Class A common stock were outstanding**[187](index=187&type=chunk) [Security Trading Plans of Directors and Executive Officers](index=33&type=section&id=Security%20Trading%20Plans%20of%20Directors%20and%20Executive%20Officers) Confirms no directors or officers adopted or terminated Rule 10b5-1 trading plans - **None of the Company's directors or executive officers** adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter[188](index=188&type=chunk) [Recent Tax Law Changes](index=33&type=section&id=Recent%20Tax%20Law%20Changes) Notes the enactment of new tax legislation and its expected immaterial impact - The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, is **not expected to materially affect** the Company's estimated fiscal 2025 effective tax rate[189](index=189&type=chunk) [Recent Developments](index=33&type=section&id=Recent%20Developments) Announces a warrant dividend distribution for common stockholders and convertible note holders - On September 9, 2025, the Board declared a **warrant dividend distribution**, where common stockholders will receive one warrant for every ten shares[190](index=190&type=chunk)[191](index=191&type=chunk) - Holders of Convertible Notes will also receive warrants without conversion, and the warrants are expected to be listed on the NYSE under ticker symbol **GME WS**[191](index=191&type=chunk) [ITEM 6. EXHIBITS](index=35&type=section&id=ITEM%206.%20EXHIBITS) Lists all exhibits filed with the Form 10-Q, including key corporate and financing documents - The exhibits include the Certificate of Incorporation, Bylaws, Indentures for the 2030 and 2032 Convertible Senior Notes, and various certifications[192](index=192&type=chunk)

Exhibit 99.1 NEWS RELEASE Contacts: Rob Capps, President & CEO MIND Technology, Inc. 281-353-4475 Ken Dennard / Zach Vaughan Dennard Lascar Investor Relations 713-529-6600 MIND@dennardlascar.com MIND TECHNOLOGY, INC. REPORTS FISCAL 2026 SECOND QUARTER RESULTS THE WOODLANDS, TX – September 9, 2025 – MIND Technology, Inc. (NASDAQ: MIND) ("MIND" or the "Company") today announced financial results for its fiscal 2026 second quarter ended July 31, 2025. Revenues for the second quarter of fiscal 2026 were approxi ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 31, 2025 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q 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 No. 000-22754 Urban Outfitters, Inc. (Exact Name of Registrant as Specified in Its Charter) Pennsylvania 23-2003332 (State or Other Jurisdiction of Incor ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) [Fiscal Year 2025 Performance Overview](index=1&type=section&id=Fiscal%20Year%202025%20Performance%20Overview) Matrix Service Company reported its Q4 and full-year fiscal 2025 results, highlighting a 14% year-over-year revenue growth in Q4 and improved fixed cost absorption, alongside a total backlog of $1.4 billion Q4 and Full-Year Fiscal 2025 Key Financials | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------- | :-------- | :-------- | :------- | :------- | | Revenue | $216.4M | $189.5M | $769.3M | $728.2M | | Net loss per share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | Adjusted net loss per share | $(0.28) | $(0.14) | $(0.93) | $(1.06) | | Adjusted EBITDA | $(4.8)M | $0.2M | $(12.9)M | $(10.5)M | | Cash flow from operations | $40.7M | N/A | $117.5M | N/A | | Project awards | $186.3M | N/A | $726.0M | N/A | | Book-to-bill ratio | 0.9x | N/A | 0.9x | N/A | | Total backlog (as of June 30, 2025) | N/A | N/A | N/A | $1.4B | | Liquidity (as of June 30, 2025) | N/A | N/A | N/A | $284.5M | | Outstanding debt | N/A | N/A | N/A | $0 | [Fiscal Year 2026 Revenue Guidance](index=1&type=section&id=Fiscal%20Year%202026%20Revenue%20Guidance) Matrix Service Company issued revenue guidance for fiscal year 2026, projecting significant year-over-year growth Fiscal Year 2026 Revenue Guidance | Metric | Guidance Range | | :----- | :------------- | | Revenue | $875 - $925 million | | Implied Growth (midpoint) | 17% YoY | [Management Commentary & Strategic Outlook](index=1&type=section&id=Management%20Commentary%20%26%20Strategic%20Outlook) Management highlighted continued momentum in Q4 FY2025, driven by large projects and strong demand in Utility and Power Infrastructure. Despite macroeconomic uncertainties, the company secured multiple project awards and is focused on sustained profitable growth through organizational realignment, streamlined business, and disciplined capital allocation - Q4 momentum from large projects drove **14% YoY revenue growth** and improved fixed cost absorption[3](index=3&type=chunk) - Project awards grew **6% YoY**, primarily from the Utility and Power Infrastructure segment[3](index=3&type=chunk) - Net income in Q4 was negatively impacted by **$14.9 million** due to labor cost overruns, a contract dispute reserve, an unfavorable court decision, and restructuring costs[5](index=5&type=chunk) - FY2026 is expected to be a year of sustained growth and earnings improvement, with revenue growth of approximately **17%** at the midpoint of guidance, supported by robust backlog (85% of midpoint)[6](index=6&type=chunk) - Strategic focus on building a strong foundation for sustained profitable growth in specialty E&C markets, including organizational flattening, streamlining, and prioritizing high-growth market opportunities[7](index=7&type=chunk) [Fourth Quarter Fiscal 2025 Financial Review](index=3&type=section&id=Fourth%20Quarter%20Fiscal%202025%20Financial%20Review) [Consolidated Financial Summary](index=3&type=section&id=Consolidated%20Financial%20Summary) The company's Q4 FY2025 saw revenue growth driven by Storage and Terminal Solutions and Utility and Power Infrastructure, but gross margin declined due to project-specific issues and a legacy project adjustment. Net loss widened, and Adjusted EBITDA turned negative, significantly impacted by discrete items [Revenue and Gross Margin](index=3&type=section&id=Revenue%20and%20Gross%20Margin) Q4 FY2025 revenue increased by 14% YoY to $216.4 million, primarily from Storage and Terminal Solutions and Utility and Power Infrastructure. However, gross margin decreased to 3.8% from 6.6% YoY, impacted by lower labor productivity on a crude terminal project and a $6.4 million adjustment for a legacy project in arbitration Q4 FY2025 Revenue and Gross Margin | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $216.4M | $189.5M | +14% | | Gross Margin | $8.1M (3.8%) | $12.4M (6.6%) | -2.8 percentage points | - Revenue increase attributed to higher volumes in Storage and Terminal Solutions and Utility and Power Infrastructure, partially offset by Process and Industrial Facilities[8](index=8&type=chunk) - Revenue negatively impacted by **$6.4 million (3.0%)** due to lowered recovery expectations on a legacy project[8](index=8&type=chunk) - Gross margin negatively impacted by a **$6.4 million** adjustment for a legacy project and lower labor productivity on a crude terminal project[9](index=9&type=chunk) [Operating Expenses](index=3&type=section&id=Operating%20Expenses) SG&A expenses remained relatively stable in Q4 FY2025, with an increase in cash-settled stock compensation offset by lower overhead. Restructuring costs of $3.4 million were incurred as part of ongoing business streamlining efforts Q4 FY2025 Operating Expenses | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------- | :-------- | :-------- | | SG&A expenses | $17.6M | $17.3M | | Restructuring expenses | $3.4M | N/A | - Cash-settled stock compensation increased by **$1.7 million** due to stock price increase[10](index=10&type=chunk) [Net Loss and Adjusted EBITDA](index=3&type=section&id=Net%20Loss%20and%20Adjusted%20EBITDA) The company reported a wider net loss and negative Adjusted EBITDA in Q4 FY2025 compared to the prior year, with discrete items significantly impacting both metrics Q4 FY2025 Net Loss and Adjusted EBITDA | Metric | Q4 FY2025 | Q4 FY2024 | | :-------------------------- | :-------- | :-------- | | Net Loss | $(11.3)M | $(4.4)M | | Net Loss per share | $(0.40) | $(0.16) | | Adjusted Net Loss | $(7.8)M | $(3.9)M | | Adjusted Net Loss per share | $(0.28) | $(0.14) | | Adjusted EBITDA | $(4.8)M | $0.2M | - Discrete items negatively impacted net income by **$14.9 million** and Adjusted EBITDA by **$11.5 million**[11](index=11&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Segment performance in Q4 FY2025 showed mixed results: Storage and Terminal Solutions saw strong revenue growth but negative gross margin due to project issues; Utility and Power Infrastructure achieved revenue growth and improved gross margin; Process and Industrial Facilities experienced revenue and gross margin declines due to project completions and mix of work [Storage and Terminal Solutions](index=3&type=section&id=Storage%20and%20Terminal%20Solutions) This segment's revenue increased significantly by 37% in Q4 FY2025, driven by specialty vessel and LNG storage projects. However, gross margin turned negative due to lower labor productivity on a crude terminal project and a $6.4 million reduction from a legacy project in arbitration Q4 FY2025 Storage and Terminal Solutions Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $96.1M | $70.0M | +37% | | Gross Margin | (1.1)% | 3.1% | -4.2 percentage points | - Revenue increase due to increased volume of work for specialty vessel and LNG storage projects[12](index=12&type=chunk) - Gross margin impacted by **$3.8 million** reduction from lower labor productivity on a crude terminal project and **$6.4 million** decrease from a legacy project[13](index=13&type=chunk) [Utility and Power Infrastructure](index=4&type=section&id=Utility%20and%20Power%20Infrastructure) The Utility and Power Infrastructure segment reported a 12% revenue increase in Q4 FY2025, benefiting from natural gas peak shaving projects. Gross margin significantly improved to 9.1% due to strong project execution and better overhead absorption, despite a charge from an unfavorable court decision Q4 FY2025 Utility and Power Infrastructure Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $73.0M | $65.3M | +12% | | Gross Margin | 9.1% | 4.2% | +4.9 percentage points | - Revenue increase from higher volume of work associated with natural gas peak shaving projects[14](index=14&type=chunk) - Gross margin improvement due to strong project execution and improved construction overhead cost absorption[14](index=14&type=chunk) - Gross margin impacted by a **$1.3 million** charge related to an unfavorable court decision[14](index=14&type=chunk) [Process and Industrial Facilities](index=4&type=section&id=Process%20and%20Industrial%20Facilities) This segment experienced a revenue decrease in Q4 FY2025, primarily due to the completion of a large renewable diesel project and lower volumes for thermal vacuum chambers. Gross margin also declined significantly due to changes in work mix Q4 FY2025 Process and Industrial Facilities Performance | Metric | Q4 FY2025 | Q4 FY2024 | Change (YoY) | | :---------------- | :-------- | :-------- | :----------- | | Revenue | $47.3M | $54.2M | -12.7% | | Gross Margin | 5.9% | 15.4% | -9.5 percentage points | - Revenue decrease due to completion of a large renewable diesel project and lower thermal vacuum chamber volumes, partially offset by refinery work[15](index=15&type=chunk) - Gross margin decrease attributed to mix of work[15](index=15&type=chunk) [Backlog and Project Awards](index=4&type=section&id=Backlog%20and%20Project%20Awards) As of June 30, 2025, the company's total backlog stood at $1.4 billion. Q4 FY2025 project awards totaled $186.3 million, resulting in a book-to-bill ratio of 0.9x for both the quarter and the trailing twelve months, with the Utility and Power Infrastructure segment showing strong award activity Backlog and Project Awards (as of June 30, 2025) | Metric | Value | | :-------------------------- | :---------- | | Total backlog | $1.4 billion | | Q4 FY2025 Project awards | $186.3 million | | Q4 FY2025 Book-to-bill ratio | 0.9x | | Trailing twelve-month book-to-bill ratio | 0.9x | | Utility and Power Infrastructure Q4 book-to-bill ratio | 1.7x | Awards, Book-to-Bill, and Backlog by Segment (Q4 and FY2025) | Segment | Q4 FY2025 Awards | Q4 FY2025 Book-to-Bill | FY2025 Awards | FY2025 Book-to-Bill | Backlog as of June 30, 2025 | | :------------------------------ | :----------------- | :--------------------- | :---------------- | :-------------------- | :-------------------------- | | Storage and Terminal Solutions | $18,415 | 0.2x | $337,731 | 0.9x | $770,095 | | Utility and Power Infrastructure | $121,885 | 1.7x | $215,378 | 0.9x | $346,384 | | Process and Industrial Facilities | $46,020 | 1.0x | $172,918 | 1.1x | $265,629 | | **Total** | **$186,320** | **0.9x** | **$726,027** | **0.9x** | **$1,382,108** | [Financial Position and Liquidity](index=4&type=section&id=Financial%20Position%20and%20Liquidity) Matrix Service Company generated $40.7 million in net cash from operating activities in Q4 FY2025. The company's liquidity improved to $284.5 million as of June 30, 2025, comprising unrestricted cash and credit facility availability, with no outstanding debt Financial Position Highlights (as of June 30, 2025) | Metric | Value | | :------------------------------------ | :---------- | | Net cash provided by operating activities (Q4 FY2025) | $40.7 million | | Total liquidity | $284.5 million | | Unrestricted cash and cash equivalents | $224.6 million | | Borrowing availability under credit facility | $59.8 million | | Outstanding debt | $0 | [Fiscal Year 2026 Financial Outlook](index=4&type=section&id=Fiscal%20Year%202026%20Financial%20Outlook) [Revenue Guidance](index=4&type=section&id=Revenue%20Guidance) Matrix Service Company provided its revenue guidance for fiscal year 2026, projecting revenue between $875 million and $925 million, representing a 14% to 20% increase from fiscal year 2025. This guidance is subject to various market and policy factors Fiscal Year 2026 Revenue Guidance | Metric | FY2025 Actual | FY2026 Guidance | % Increase | | :----- | :------------ | :-------------- | :--------- | | Revenue | $769.3 million | $875 - $925 million | 14% - 20% | - Guidance reflects current expectations and beliefs, subject to factors like project award timing, market fundamentals, client decision-making, and federal trade/environmental policy uncertainty[19](index=19&type=chunk) [Corporate Information](index=6&type=section&id=Corporate%20Information) [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Matrix Service Company will host a conference call on September 10, 2025, to discuss earnings, with live audio-visual webcast and dial-in options available for investors, and a replay accessible afterward - Conference call date: Wednesday, September 10, 2025, at **10:30 a.m. (Eastern) / 9:30 a.m. (Central)**[21](index=21&type=chunk) - Webcast link: https://edge.media-server.com/mmc/p/kpvqqb4d and Company's website[22](index=22&type=chunk) - Dial-in registration: https://register-conf.media-server.com/register/BI698998b7627243029abf6987cd1d9aa8. Replay available on Investor Relations page[23](index=23&type=chunk)[24](index=24&type=chunk) [About Matrix Service Company](index=6&type=section&id=About%20Matrix%20Service%20Company) Matrix Service Company is a leading specialty engineering and construction firm providing infrastructure solutions to energy and industrial markets, known for safety, quality, and integrity. Headquartered in Tulsa, Oklahoma, it operates globally and reports financial results across three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions - Leading specialty engineering and construction company providing infrastructure solutions to energy and industrial markets[25](index=25&type=chunk) - Headquartered in Tulsa, Oklahoma, with offices in the US, Canada, Australia, and South Korea[26](index=26&type=chunk) - Operates in three key segments: Utility and Power Infrastructure, Process and Industrial Facilities, and Storage and Terminal Solutions[26](index=26&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially from current expectations. The company undertakes no obligation to update this information, except as required by law - Statements are made in reliance upon safe harbor provisions of the Private Securities Litigation Reform Act of 1995[27](index=27&type=chunk) - Future events involve risks and uncertainties that may cause actual results to differ materially[27](index=27&type=chunk) - Company undertakes no obligation to update information, except as required by law[27](index=27&type=chunk) [Investor Relations Contact](index=6&type=section&id=Investor%20Relations%20Contact) Contact information for investor relations is provided for inquiries - Contact: Kellie Smythe, Senior Director, Investor Relations, Marketing, Communications & Sustainability[28](index=28&type=chunk)[29](index=29&type=chunk) - Email: ksmythe@matrixservicecompany.com[29](index=29&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=8&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the consolidated statements of income for the three months and fiscal years ended June 30, 2025, and 2024, detailing revenue, cost of revenue, gross profit, operating expenses, and net loss Consolidated Statements of Income (In thousands, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :----------------------------------- | :-------- | :-------- | :------- | :------- | | Revenue | $216,377 | $189,499 | $769,286 | $728,213 | | Cost of revenue | $208,255 | $177,052 | $729,609 | $687,740 | | Gross profit | $8,122 | $12,447 | $39,677 | $40,473 | | Selling, general and administrative expenses | $17,581 | $17,293 | $71,173 | $70,085 | | Restructuring costs | $3,448 | $501 | $3,572 | $501 | | Operating loss | $(12,907) | $(5,347) | $(35,068) | $(30,113) | | Net loss | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Basic loss per common share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | Diluted loss per common share | $(0.40) | $(0.16) | $(1.06) | $(0.91) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) This section provides the consolidated balance sheets as of June 30, 2025, and 2024, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets (In thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------------------------- | :-------------- | :-------------- | | **Assets:** | | | | Cash and cash equivalents | $224,641 | $115,615 | | Accounts receivable, net of allowance for credit losses | $154,994 | $138,987 | | Costs and estimated earnings in excess of billings on uncompleted contracts | $29,764 | $33,893 | | Inventories | $5,917 | $8,839 | | Income taxes receivable | $110 | $180 | | Prepaid expenses and other current assets | $4,347 | $4,077 | | Total current assets | $419,773 | $301,591 | | Restricted cash | $25,000 | $25,000 | | Property, plant and equipment, net | $42,097 | $43,498 | | Operating lease right-of-use assets | $17,827 | $19,150 | | Goodwill | $29,047 | $29,023 | | Other intangible assets, net of accumulated amortization | $555 | $1,651 | | Other assets, non-current | $65,957 | $31,438 | | **Total assets** | **$600,256** | **$451,351** | | **Liabilities and stockholders' equity:** | | | | Accounts payable | $80,453 | $65,629 | | Billings on uncompleted contracts in excess of costs and estimated earnings | $323,593 | $171,308 | | Accrued wages and benefits | $18,961 | $15,878 | | Accrued insurance | $5,310 | $4,605 | | Operating lease liabilities (current) | $4,441 | $3,739 | | Other accrued expenses | $3,617 | $3,956 | | Total current liabilities | $436,375 | $265,115 | | Deferred income taxes | $25 | $25 | | Operating lease liabilities (non-current) | $16,986 | $19,156 | | Other liabilities, non-current | $4,154 | $2,873 | | **Total liabilities** | **$457,540** | **$287,169** | | Total stockholders' equity | $142,716 | $164,182 | | **Total liabilities and stockholders' equity** | **$600,256** | **$451,351** | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the condensed consolidated statements of cash flows for the three months and fiscal years ended June 30, 2025, and 2024, outlining cash flows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (In thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :------------------------------------------ | :-------- | :-------- | :------- | :------- | | Net cash provided by operating activities | $40,708 | $47,004 | $117,471 | $72,571 | | Net cash used by investing activities | $(2,257) | $(791) | $(7,445) | $(945) | | Net cash provided (used) by financing activities | $46 | $(48) | $(1,040) | $(10,372) | | Net increase in cash and cash equivalents | $39,100 | $45,957 | $109,026 | $60,803 | | Cash, cash equivalents and restricted cash, end of period | $249,641 | $140,615 | $249,641 | $140,615 | [Supplemental Financial Data](index=12&type=section&id=Supplemental%20Financial%20Data) [Segment Results of Operations (Detailed)](index=12&type=section&id=Segment%20Results%20of%20Operations%20%28Detailed%29) This section provides a detailed breakdown of revenue, cost of revenue, gross profit/loss, SG&A, restructuring costs, and operating income/loss for each of the three operating segments (Storage and Terminal Solutions, Utility and Power Infrastructure, Process and Industrial Facilities) and Corporate for both the three months and fiscal years ended June 30, 2025, and 2024 Segment Results of Operations (Three Months Ended June 30, 2025, In thousands) | Segment | Total Revenue | Gross Profit (Loss) | Operating Income (Loss) | | :------------------------------ | :------------ | :------------------ | :---------------------- | | Storage and Terminal Solutions | $96,091 | $(1,045) | $(7,426) | | Utility and Power Infrastructure | $73,027 | $6,662 | $3,778 | | Process and Industrial Facilities | $47,259 | $2,784 | $(62) | | Corporate | $— | $(279) | $(9,197) | | **Total** | **$216,377** | **$8,122** | **$(12,907)** | Segment Results of Operations (Fiscal Year Ended June 30, 2025, In thousands) | Segment | Total Revenue | Gross Profit (Loss) | Operating Income (Loss) | | :------------------------------ | :------------ | :------------------ | :---------------------- | | Storage and Terminal Solutions | $365,891 | $14,655 | $(9,206) | | Utility and Power Infrastructure | $248,691 | $16,915 | $3,834 | | Process and Industrial Facilities | $154,704 | $8,910 | $479 | | Corporate | $— | $(803) | $(30,175) | | **Total** | **$769,286** | **$39,677** | **$(35,068)** | [Backlog Changes (Detailed)](index=13&type=section&id=Backlog%20Changes%20%28Detailed%29) This section defines backlog and provides detailed tables summarizing changes in backlog by segment for the three months and fiscal year ended June 30, 2025, including project awards and revenue recognized - Backlog is defined as the total dollar amount of revenue expected from awarded work (signed contract, limited notice to proceed, or other firm assurance)[41](index=41&type=chunk) Backlog Changes (Three Months Ended June 30, 2025, In thousands) | Segment | Backlog as of March 31, 2025 | Project Awards | Revenue Recognized | Backlog as of June 30, 2025 | Book-to-Bill Ratio | | :------------------------------ | :--------------------------- | :------------- | :----------------- | :-------------------------- | :----------------- | | Storage and Terminal Solutions | $847,771 | $18,415 | $(96,091) | $770,095 | 0.2x | | Utility and Power Infrastructure | $297,526 | $121,885 | $(73,027) | $346,384 | 1.7x | | Process and Industrial Facilities | $266,868 | $46,020 | $(47,259) | $265,629 | 1.0x | | **Total** | **$1,412,165** | **$186,320** | **$(216,377)** | **$1,382,108** | **0.9x** | Backlog Changes (Fiscal Year Ended June 30, 2025, In thousands) | Segment | Backlog as of June 30, 2024 | Project Awards | Other Adjustment | Revenue Recognized | Backlog as of June 30, 2025 | Book-to-Bill Ratio | | :------------------------------ | :-------------------------- | :------------- | :--------------- | :----------------- | :-------------------------- | :----------------- | | Storage and Terminal Solutions | $798,255 | $337,731 | $— | $(365,891) | $770,095 | 0.9x | | Utility and Power Infrastructure | $379,697 | $215,378 | $— | $(248,691) | $346,384 | 0.9x | | Process and Industrial Facilities | $251,521 | $172,918 | $(4,106) | $(154,704) | $265,629 | 1.1x | | **Total** | **$1,429,473** | **$726,027** | **$(4,106)** | **$(769,286)** | **$1,382,108** | **0.9x** | - Backlog was reduced by **$4.1 million** due to the closure of a customer's facility in the Process and Industrial Facilities segment[43](index=43&type=chunk)[44](index=44&type=chunk) [Non-GAAP Financial Measures](index=14&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles non-GAAP financial measures, Adjusted Net Loss and Adjusted EBITDA, to their most directly comparable GAAP measures. It also outlines the limitations of these non-GAAP metrics [Adjusted Net Loss Reconciliation](index=14&type=section&id=Adjusted%20Net%20Loss%20Reconciliation) Adjusted Net Loss is presented as Net loss before gain on sale of assets and the tax impact of these adjustments, aiming to better depict core operating results. The reconciliation shows the adjustments made for restructuring costs and gain on sale of assets - Adjusted Net Loss is defined as Net loss before gain on sale of assets and the tax impact of these adjustments, used to better depict core operating results[46](index=46&type=chunk) Reconciliation of Net Loss to Adjusted Net Loss (In thousands, except per share data) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :---------------------------------- | :-------- | :-------- | :------- | :------- | | Net loss, as reported | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Restructuring costs | $3,448 | $501 | $3,572 | $501 | | Gain on sale of assets | $— | $— | $— | $(4,542) | | Tax impact of adjustments and other net tax items | $— | $— | $— | $— | | **Adjusted net loss** | **$(7,824)** | **$(3,876)** | **$(25,890)** | **$(29,017)** | | Loss per fully diluted share, as reported | $(0.40) | $(0.16) | $(1.06) | $(0.91) | | **Adjusted loss per fully diluted share** | **$(0.28)** | **$(0.14)** | **$(0.93)** | **$(1.06)** | - Limitations include the exclusion of gain on sale of assets (material cash inflow) and restructuring costs (material, often cash expenses)[50](index=50&type=chunk) [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA is defined as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization. It is used by the financial community to measure performance and evaluate market value, with a detailed reconciliation provided - Adjusted EBITDA is defined as net loss before gain on sale of assets, stock-based compensation, interest expense, interest income, income taxes, and depreciation and amortization[51](index=51&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA (In thousands) | Metric | Q4 FY2025 | Q4 FY2024 | FY2025 | FY2024 | | :-------------------------------------------------- | :-------- | :-------- | :------- | :------- | | Net loss | $(11,272) | $(4,377) | $(29,462) | $(24,976) | | Interest expense | $150 | $343 | $518 | $1,130 | | Interest income | $(1,984) | $(862) | $(6,652) | $(1,339) | | Provision (benefit) for federal, state and foreign income taxes | $448 | $(40) | $464 | $(36) | | Depreciation and amortization | $2,474 | $2,686 | $10,012 | $11,023 | | Gain on sale of assets | $— | $— | $— | $(4,542) | | Restructuring costs | $3,217 | $501 | $3,341 | $501 | | Stock-based compensation | $2,150 | $1,980 | $8,904 | $7,745 | | **Adjusted EBITDA** | **$(4,817)** | **$231** | **$(12,875)** | **$(10,494)** | - Limitations include the exclusion of interest expense, interest income, income taxes, depreciation/amortization, gain on asset sales, restructuring costs, and equity-settled stock-based compensation[52](index=52&type=chunk)

EDITORIAL CONTACT: Exhibit 99.1 PRESS RELEASE INVESTOR CONTACT: Tushar Jain Synopsys, Inc. 650-584-4289 Synopsys-ir@synopsys.com • Quarterly revenue of $1.740 billion, up 14% year-over-year (YoY) • Quarterly GAAP earnings per diluted share of $1.50; non-GAAP earnings per diluted share of $3.39 • Results reflect the closing of Ansys acquisition on July 17, 2025 • Expecting full-year 2025 revenue between $7.03 and $7.06 billion dollars as Synopsys transformation continues "In Q3, strength in Design Automation ...

[Fiscal Year 2026 First Quarter Overview](index=1&type=section&id=Fiscal%20Year%202026%20First%20Quarter%20Overview) Oracle's Q1 FY26 results show strong Cloud revenue growth and a significant increase in Remaining Performance Obligations [Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) Oracle reported strong Q1 FY26 financial results, driven by significant Cloud revenue growth and increased Remaining Performance Obligations Key Financial Metrics | Metric | Q1 FY26 (USD) | YoY Change (USD) | YoY Change (Constant Currency) | | :-------------------------------- | :-------------- | :--------------- | :----------------------------- | | Total Remaining Performance Obligations | $455 billion | 359% | 359% | | Total Quarterly Revenues | $14.9 billion | 12% | 11% | | Cloud Revenues | $7.2 billion | 28% | 27% | | Software Revenues | $5.7 billion | (1%) | (2%) | | GAAP Operating Income | $4.3 billion | - | - | | Non-GAAP Operating Income | $6.2 billion | 9% | 7% | | GAAP Net Income | $2.9 billion | - | - | | Non-GAAP Net Income | $4.3 billion | 8% | 6% | | GAAP EPS | $1.01 | (2%) | (5%) | | Non-GAAP EPS | $1.47 | 6% | 4% | | Short-term Deferred Revenues | $12.1 billion | - | - | | LTM Operating Cash Flow | $21.5 billion | 13% | - | - Cloud Infrastructure (IaaS) Revenue grew **55% in USD** (**54% in constant currency**) to **$3.3 billion**[6](index=6&type=chunk) - Cloud Application (SaaS) Revenue grew **11% in USD** (**10% in constant currency**) to **$3.8 billion**[6](index=6&type=chunk) [Management Commentary and Strategic Outlook](index=1&type=section&id=1.2%20Management%20Commentary%20and%20Strategic%20Outlook) Management highlighted significant RPO growth driven by multi-billion dollar contracts, projected strong OCI expansion, and announced a new Oracle AI Database service - Oracle signed four multi-billion-dollar contracts in Q1, leading to a **359% increase in RPO** to **$455 billion**[5](index=5&type=chunk) - Oracle Cloud Infrastructure (OCI) revenue is projected to grow **77% to $18 billion** in FY26, and further to **$144 billion** over the subsequent four years[5](index=5&type=chunk) - MultiCloud database revenue from Amazon, Google, and Microsoft surged by **1,529% in Q1**, with plans to deliver 37 more datacenters to hyperscaler partners[5](index=5&type=chunk) - Oracle will introduce a new 'Oracle AI Database' Cloud Infrastructure service, enabling customers to use various Large Language Models directly on Oracle Database for data access and analysis[5](index=5&type=chunk) [Dividend Declaration](index=1&type=section&id=1.3%20Dividend%20Declaration) Oracle's board of directors declared a quarterly cash dividend of $0.50 per share of outstanding common stock - A quarterly cash dividend of **$0.50 per share** of common stock was declared, payable on October 23, 2025, to stockholders of record as of October 9, 2025[5](index=5&type=chunk) [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section provides an overview of Oracle's business, forward-looking statements, and available investor resources [About Oracle](index=2&type=section&id=2.1%20About%20Oracle) Oracle Corporation provides integrated suites of applications and secure, autonomous infrastructure within the Oracle Cloud, with trademarks including Oracle, Java, MySQL, and NetSuite - Oracle offers integrated application suites and secure, autonomous infrastructure in the Oracle Cloud[9](index=9&type=chunk) - Key trademarks include Oracle, Java, MySQL, and NetSuite, with NetSuite recognized as the first cloud company[9](index=9&type=chunk) [Safe Harbor Statement](index=2&type=section&id=2.2%20Safe%20Harbor%20Statement) The report contains forward-looking statements subject to material risks and uncertainties, including product development, cloud management, and cybersecurity concerns - Statements about future plans, expectations, and growth (e.g., RPO, OCI, MultiCloud revenue) are forward-looking and subject to risks[10](index=10&type=chunk) - Risks include developing new products, managing cloud/hardware offerings, securing datacenter capacity, coding errors, acquisitions, government contracts, economic conditions, IT failures, and cybersecurity breaches[10](index=10&type=chunk) [Additional Information and Resources](index=2&type=section&id=2.3%20Additional%20Information%20and%20Resources) Oracle provides various online resources for investors, customers, and analysts, including SEC filings, technical innovations, and analyst reports - A list of recent technical innovations and announcements is available at www.oracle.com/news/[11](index=11&type=chunk) - Industry analyst reports on Oracle's products and services can be found at www.oracle.com/corporate/analyst-reports/[11](index=11&type=chunk) - SEC filings are available online from the SEC or Oracle's Investor Relations website[10](index=10&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) This section presents Oracle's GAAP financial statements, including statements of operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=3&type=section&id=3.1%20Condensed%20Consolidated%20Statements%20of%20Operations) Oracle's Q1 FY26 GAAP operating income increased despite rising operating expenses, while net income remained flat and diluted EPS slightly decreased GAAP Statements of Operations (in millions USD) | Metric (in millions) | Q1 FY26 (2025) | Q1 FY25 (2024) | YoY Change (US $) | YoY Change (Constant Currency) | | :------------------- | :------------- | :------------- | :---------------- | :----------------------------- | | Total Revenues | $14,926 | $13,307 | 12% | 11% | | Cloud Revenues | $7,186 | $5,623 | 28% | 27% | | Software Revenues | $5,721 | $5,766 | (1%) | (2%) | | Total Operating Expenses | $10,649 | $9,316 | 14% | 14% | | Operating Income | $4,277 | $3,991 | 7% | 4% | | Net Income | $2,927 | $2,929 | 0% | (4%) | | Diluted EPS | $1.01 | $1.03 | (2%) | (5%) | - Cloud and software operating expenses increased by **39% to $3.607 billion**, while restructuring expenses surged by **448% to $402 million**[13](index=13&type=chunk) - Provision for income taxes increased by **108% to $500 million**, partly due to the 'One, Big, Beautiful Bill Act'[13](index=13&type=chunk) [Condensed Consolidated Balance Sheets](index=6&type=section&id=3.2%20Condensed%20Consolidated%20Balance%20Sheets) Oracle's total assets increased to **$180.4 billion** as of August 31, 2025, driven by property, plant and equipment, with a corresponding rise in total liabilities GAAP Balance Sheets (in millions USD) | Metric (in millions) | August 31, 2025 | May 31, 2025 | | :------------------- | :-------------- | :----------- | | Total Current Assets | $24,634 | $24,579 | | Property, plant and equipment, net | $53,194 | $43,522 | | Total Non-Current Assets | $155,815 | $143,782 | | TOTAL ASSETS | $180,449 | $168,361 | | Total Current Liabilities | $39,874 | $32,643 | | Total Non-Current Liabilities | $115,909 | $114,749 | | Stockholders' Equity | $24,666 | $20,969 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $180,449 | $168,361 | - Property, plant and equipment, net, increased by **$9.672 billion** from May 31, 2025, to August 31, 2025[21](index=21&type=chunk) - Deferred revenues (current liability) increased by **$2.711 billion** to **$12.098 billion**[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=3.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 FY26 saw increased net cash from operating activities, but a significant rise in capital expenditures led to a substantial increase in net cash used for investing activities GAAP Statements of Cash Flows (in millions USD) | Metric (in millions) | Q1 FY26 (2025) | Q1 FY25 (2024) | | :------------------- | :------------- | :------------- | | Net cash provided by operating activities | $8,140 | $7,427 | | Net cash used for investing activities | $(8,718) | $(2,765) | | Net cash provided by (used for) financing activities | $210 | $(4,585) | | Net (decrease) increase in cash and cash equivalents | $(341) | $162 | | Cash and cash equivalents at end of period | $10,445 | $10,616 | - Capital expenditures dramatically increased to **$8.502 billion** in Q1 FY26 from **$2.303 billion** in Q1 FY25[23](index=23&type=chunk) - Proceeds from issuances of common stock were **$1.170 billion** in Q1 FY26, compared to **$179 million** in Q1 FY25[23](index=23&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section details Oracle's non-GAAP financial measures, their reconciliation to GAAP, and the rationale for their use [Reconciliation of Selected GAAP Measures to Non-GAAP Measures](index=4&type=section&id=4.1%20Reconciliation%20of%20Selected%20GAAP%20Measures%20to%20Non-GAAP%20Measures) Oracle reconciles GAAP to non-GAAP measures by adjusting for items like stock-based compensation and restructuring, resulting in higher non-GAAP operating income and net income GAAP to Non-GAAP Reconciliation (in millions USD) | Metric (in millions) | GAAP Q1 FY26 | Non-GAAP Q1 FY26 | GAAP Q1 FY25 | Non-GAAP Q1 FY25 | Non-GAAP YoY Change (US $) | Non-GAAP YoY Change (Constant Currency) | | :------------------- | :----------- | :--------------- | :----------- | :--------------- | :------------------------- | :-------------------------------------- | | Total Revenues | $14,926 | $14,926 | $13,307 | $13,307 | 12% | 11% | | Total Operating Expenses | $10,649 | $8,690 | $9,316 | $7,599 | 14% | 14% |\ | Operating Income | $4,277 | $6,236 | $3,991 | $5,708 | 9% | 7% | | Operating Margin % | 29% | 42% | 30% | 43% | (111) bp. | (144) bp. | | Net Income | $2,927 | $4,283 | $2,929 | $3,964 | 8% | 6% | | Diluted EPS | $1.01 | $1.47 | $1.03 | $1.39 | 6% | 4% | - Key adjustments for non-GAAP calculations in Q1 FY26 included **$1.124 billion** for stock-based compensation, **$420 million** for amortization of intangible assets, **$13 million** for acquisition-related and other expenses, and **$402 million** for restructuring[15](index=15&type=chunk) - The effective non-GAAP tax rate for Q1 FY26 was **20.5%**, compared to the GAAP tax rate of **14.6%**[16](index=16&type=chunk) [Free Cash Flow - Trailing 4-Quarters](index=8&type=section&id=4.2%20Free%20Cash%20Flow%20-%20Trailing%204-Quarters) Trailing 4-quarter GAAP operating cash flow grew to **$21.534 billion**, but free cash flow turned negative due to a substantial increase in capital expenditures Trailing 4-Quarters Free Cash Flow (in millions USD) | Metric (in millions) | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | | :------------------- | :------ | :------ | :------ | :------ | :------ | | GAAP Operating Cash Flow | $19,126 | $20,287 | $20,745 | $20,821 | $21,534 | | Capital Expenditures | $(7,855) | $(10,745) | $(14,933) | $(21,215) | $(27,414) | | Free Cash Flow | $11,271 | $9,542 | $5,812 | $(394) | $(5,880) | | Operating Cash Flow % Growth over prior year | 8% | 19% | 14% | 12% | 13% | | Free Cash Flow % Growth over prior year | 19% | (6%) | (53%) | (103%) | (152%) | - Free Cash Flow as a % of Net Income was **(47%)** in Q1 FY26, down from **103%** in Q1 FY25, reflecting increased capital investments[25](index=25&type=chunk) [Explanation of Non-GAAP Measures](index=11&type=section&id=4.3%20Explanation%20of%20Non-GAAP%20Measures) Oracle utilizes non-GAAP measures to present core business performance by excluding specific non-recurring or non-cash items, aiding internal evaluation and forecasting - Non-GAAP measures exclude stock-based compensation, amortization of intangible assets, acquisition-related and other expenses, restructuring expenses, and the tax impact of the 'One, Big, Beautiful Bill Act'[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - These adjustments are made to help understand past financial performance, future results, and to provide a framework for assessing underlying business performance[31](index=31&type=chunk) - The 'One, Big, Beautiful Bill Act' (OBBBA), signed into law on July 4, 2025, resulted in a net tax expense of **$958 million** in Q1 FY26, which is excluded from non-GAAP income taxes and net income[34](index=34&type=chunk) [Supplemental Analysis of GAAP Revenues](index=9&type=section&id=Supplemental%20Analysis%20of%20GAAP%20Revenues) This section provides a detailed breakdown of Oracle's GAAP revenues by offerings and geographic regions [Revenues by Offerings](index=9&type=section&id=5.1%20Revenues%20by%20Offerings) Oracle's total revenues grew **12%** to **$14.926 billion** in Q1 FY26, primarily driven by strong Cloud revenue growth, despite a slight decline in software revenues Revenues by Offerings (in millions USD) | Revenue Category (in millions) | Q1 FY26 | Q1 FY25 | YoY Growth (US $) | YoY Growth (Constant Currency) | | :----------------------------- | :------ | :------ | :---------------- | :----------------------------- | | Cloud | $7,186 | $5,623 | 28% | 27% | | Software license | $766 | $870 | (12%) | (13%) | | Software support | $4,955 | $4,896 | 1% | (1%) | | Software (Total) | $5,721 | $5,766 | (1%) | (2%) | | Hardware | $670 | $655 | 2% | 1% | | Services | $1,349 | $1,263 | 7% | 5% | | Total revenues | $14,926 | $13,307 | 12% | 11% | [Cloud Revenues by Offerings](index=9&type=section&id=5.2%20Cloud%20Revenues%20by%20Offerings) Cloud revenues showed robust growth, with Cloud Infrastructure (IaaS) leading at **55%** to **$3.347 billion**, complemented by Cloud Applications (SaaS) growth Cloud Revenues by Offerings (in millions USD) | Cloud Revenue Category (in millions) | Q1 FY26 | Q1 FY25 | YoY Growth (US $) | YoY Growth (Constant Currency) | | :----------------------------------- | :------ | :------ | :---------------- | :----------------------------- | | Cloud applications | $3,839 | $3,469 | 11% | 10% | | Cloud infrastructure | $3,347 | $2,154 | 55% | 54% | | Total cloud revenues | $7,186 | $5,623 | 28% | 27% | [Geographic Revenues](index=9&type=section&id=5.3%20Geographic%20Revenues) The Americas remained Oracle's largest revenue contributor with **15%** growth, while Europe/Middle East/Africa and Asia Pacific also demonstrated positive revenue increases Geographic Revenues (in millions USD) | Geographic Region (in millions) | Q1 FY26 | Q1 FY25 | YoY Growth (US $) | | :------------------------------ | :------ | :------ | :---------------- | | Americas | $9,662 | $8,372 | 15% | | Europe/Middle East/Africa | $3,481 | $3,228 | 8% | | Asia Pacific | $1,783 | $1,707 | 4% | | Total revenues | $14,926 | $13,307 | 12% |

Exhibit 99.1 Lands' End Announces Second Quarter 2025 Results Increased gross margin approximately 90 basis points Reduced inventory for the ninth consecutive quarter DODGEVILLE, Wis., September 9, 2025 (GLOBE NEWSWIRE) – Lands' End, Inc. (NASDAQ: LE) today announced financial results for the second quarter ended August 1, 2025. Andrew McLean, Chief Executive Officer, stated: "As we reflect on the past several months – including the second and into the third quarter – we're seeing clear, encouraging momentu ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) For the quarterly period ended August 2, 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 ________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-41140 SAMSARA INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of inc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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 August 2, 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 001-32545 DESIGNER BRANDS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...