Financial Performance - Net sales for Q3 2025 were $699 million, a decrease of 13% from $804 million in Q3 2024, primarily due to lower sales volumes and average selling prices of TiO2 [119]. - TiO2 revenue decreased by 11% or $66 million compared to the prior year quarter, driven by a $47 million decrease in sales volumes and a $29 million decrease in average selling prices [119]. - Zircon revenue decreased by 20% from Q3 2024 to Q3 2025, primarily due to a 16% decline in average selling prices and a 4% decrease in sales volumes [115]. - Gross profit for Q3 2025 was $52 million, representing a gross margin of 7.4%, down from 15.9% in the prior year [118]. - The company reported a net loss of $100 million for Q3 2025, compared to a net loss of $25 million in Q3 2024, reflecting a significant increase in restructuring charges [118]. - Adjusted EBITDA for Q3 2025 was $74 million, down from $143 million in Q3 2024, with adjusted EBITDA as a percentage of net sales decreasing to 10.6% from 17.8% [118]. - For the nine months ended September 30, 2025, net sales were $2,168 million, a decrease of 10% compared to $2,398 million for the same period in 2024 [128]. - For the nine months ended September 30, 2025, total net sales decreased by 10% to $2,168 million compared to $2,398 million in the prior year [129]. - TiO2 revenue decreased by 8% or $153 million, primarily due to a $126 million decrease in sales volumes and a $41 million decrease in average selling prices [129]. - Gross margin for the nine months ended September 30, 2025 was $230 million, representing 10.6% of net sales, down from 16.6% in the prior year [129]. - Loss from operations was $139 million for the nine months ended September 30, 2025, a decrease of $310 million compared to income from operations of $171 million in the prior year [131]. - Adjusted EBITDA as a percentage of net sales was 12.9% for the nine months ended September 30, 2025, a decrease of 5.2 points from 18.1% in the prior year [137]. - The company reported a net loss of $296 million for the nine months ended September 30, 2025, compared to a net loss of $24 million for the same period in 2024, representing an increase in net loss of $272 million year-over-year [162]. Liquidity and Debt - Total available liquidity as of September 30, 2025, was $664 million, including $185 million in cash and cash equivalents [116]. - Total debt as of September 30, 2025, was $3.2 billion, with a net debt to trailing twelve months adjusted EBITDA ratio of 7.5x [116]. - Cash and cash equivalents increased to $185 million as of September 30, 2025, up from $151 million at December 31, 2024 [140]. - Working capital was $1.5 billion at September 30, 2025, compared to $1.3 billion at December 31, 2024 [141]. - Short-term and long-term debt increased to $3.2 billion as of September 30, 2025, compared to $2.9 billion at December 31, 2024 [155]. - The company’s long-term debt, net, increased to $3,136 million as of September 30, 2025, up from $2,759 million as of December 31, 2024 [172]. - The company’s net debt to trailing twelve months Adjusted EBITDA ratio increased to 7.5x as of September 30, 2025, compared to 4.8x as of December 31, 2024 [172]. - The company issued $400 million of 9.125% senior secured notes due 2030 on September 26, 2025 [153]. Cash Flow - Cash used in operating activities was $61 million for the nine months ended September 30, 2025, a decrease from cash provided by operating activities of $218 million in the prior year, primarily due to a decrease in income-related cash generation [162]. - Net cash used in investing activities increased to $255 million in the nine months ended September 30, 2025, compared to $226 million in the same period of 2024, driven by higher capital expenditures of $273 million [163]. - The company generated net cash provided by financing activities of $345 million for the nine months ended September 30, 2025, compared to cash used in financing activities of $97 million in the prior year, primarily from net proceeds of long-term debt of $379 million [164]. Restructuring and Charges - Restructuring and other charges for Q3 2025 amounted to $25 million, primarily related to the idling of the Botlek plant [119]. - The company incurred restructuring and other charges of $25 million for the three months ended September 30, 2025, and $150 million for the nine months ended September 30, 2025 [183]. - Interest expense for the three months ended September 30, 2025, was $48 million, with a total of $176 million for the trailing twelve months [178]. Environmental and Compliance Costs - The company is subject to significant environmental compliance costs, which are expected to continue to be substantial in the foreseeable future [188]. Currency Risk and Hedging - The company is exposed to currency risk primarily in South Africa and Australia, where revenues are earned in U.S. dollars while expenses are incurred in local currencies [200]. - The company enters into foreign currency contracts to hedge forecasted non-functional currency sales and costs for its subsidiaries in South Africa and Australia [201]. - As of September 30, 2025, the company had notional amounts of 136 million Australian dollars (approximately $90 million) in foreign currency contracts to hedge against fluctuations in currency rates for its Australian subsidiaries' cost of sales [201]. - The company had notional amounts of 975 million South African Rand (approximately $56 million) to reduce exposure of its South African subsidiaries' third-party sales to currency fluctuations [201]. - As of September 30, 2025, the company had outstanding foreign currency contracts totaling 470 million South African Rand (approximately $27 million) and 161 million Australian dollars (approximately $106 million) [202]. - The company utilized a combination of zero-cost collars, put options, and forward contracts to manage currency exposure, designating these as cash flow hedges [201]. - As of September 30, 2025, the company had notional amounts of 61 million Pound Sterling (approximately $82 million) and 40 million Euro (approximately $47 million) in outstanding foreign currency contracts [202]. - A hypothetical 1% increase in interest rates would result in a net decrease to pre-tax income of approximately $7 million on an annualized basis [193]. - The company recorded a net unrealized gain of $1 million related to interest rate swaps as of September 30, 2025 [198]. - The company recorded a net unrealized gain of $6 million recorded in "Accumulated other comprehensive loss" on the balance sheet, expected to be fully recognized in earnings over the next twelve months [201]. - The company recorded a net loss of $14 million in "Accumulated other comprehensive loss" at December 31, 2024 [201].

Financial Performance - Adjusted noninterest income for Q3 2025 was $17,636,000, up from $16,272,000 in Q3 2024, representing an increase of 8.4%[191] - Adjusted noninterest expense for Q3 2025 was $35,726,000, compared to $34,504,000 in Q3 2024, reflecting an increase of 3.5%[191] - Adjusted net income for the nine months ended September 30, 2025, was $35,853,000, up from $30,424,000 in the same period of 2024, indicating a growth of 17.5%[191] - Adjusted diluted earnings per common share for Q3 2025 was $0.56, unchanged from Q3 2024, while the nine-month figure decreased slightly from $1.91 to $1.88[194] - Net income for Q3 2025 was $10.8 million, a slight decrease of 1% from $11.0 million in Q3 2024, while for the nine months, net income increased by 11% to $36.3 million from $32.7 million[213] - Adjusted net income (non-GAAP) for Q3 2025 was $10.8 million, down 1% from $11.0 million in Q3 2024, and for the nine months, it increased by 18% to $35.9 million from $30.4 million[214] Revenue and Income Sources - Total revenues for Q3 2025 were $56.5 million, a 16% increase compared to $48.5 million in Q3 2024, and for the nine months, total revenues increased by 17% to $169.8 million from $145.6 million[213] - Net interest income for Q3 2025 was $38.8 million, an increase of 20% from $32.3 million in Q3 2024, while for the nine months ended September 30, 2025, it reached $112.4 million, up 18% from $95.5 million in the same period last year[213] - Noninterest income for Q3 2025 was $17.6 million, an 8% increase from $16.3 million in Q3 2024, and for the nine months, it rose 14% to $57.4 million from $50.1 million[213] Expenses and Cost Management - The Corporation's principal noninterest expenses include salaries and employee benefits, which are critical for maintaining service quality and market share[200] - Total noninterest expense for the three months ended September 30, 2025, was $35.7 million, an increase of $1.2 million (4%) compared to $34.5 million in 2024[246] - Salaries and employee benefits, the largest component of noninterest expense, increased by $1.3 million (6%) for the three months ended September 30, 2025, compared to the same period in 2024[247] Asset and Loan Management - Total average assets as reported for Q3 2025 were $6,738,796,000, down from $7,254,566,000 in Q3 2024, a decrease of 7.1%[196] - The average balance of total loans decreased to $5.16 billion in Q3 2025 from $5.58 billion in Q3 2024, reflecting a decline of $414.2 million[218] - Total loans amounted to $5.1 billion at September 30, 2025, down by $15.3 million, or 0.3%, from the end of 2024[272] Credit Quality and Risk Management - Provision for credit losses in Q3 2025 was $6.8 million, significantly higher than $200 thousand in Q3 2024, reflecting a 3,300% increase, while for the nine months, it rose to $8.6 million from $1.4 million[213] - Total nonperforming assets decreased to $14.0 million as of September 30, 2025, down from $23.3 million at December 31, 2024, resulting in a nonperforming assets to total assets ratio of 0.21%[310] - The allowance for credit losses on loans to total loans was 0.71% as of September 30, 2025, compared to 0.82% at December 31, 2024[310] Capital and Liquidity - Total shareholders' equity increased by $33.3 million (7%) from December 31, 2024, to September 30, 2025[263] - The total risk-based capital ratio was 12.90% at September 30, 2025, up from 12.47% at December 31, 2024, indicating a well-capitalized status[358] - Total contingent liquidity increased to $1.84 billion, representing 127.1% of uninsured deposits[350] Market and Interest Rate Sensitivity - As of September 30, 2025, a 100 basis point decrease in interest rates is estimated to decrease net interest income by 2.11% for the first 12 months[370] - The total change in market value of available for sale debt securities as of September 30, 2025 is projected to be $48,209 thousand with a 100 basis point decrease in rates[374] - Interest-earning assets are expected to reprice more quickly than interest-bearing liabilities as interest rates change[371]

Revenue Breakdown - Approximately 57% of Fiscal 2025 net revenues were earned outside of the U.S.[168] - North America segment represented approximately 43% of Fiscal 2025 net revenues, primarily from retail and wholesale sales in the U.S. and Canada[170] - Europe segment accounted for approximately 31% of Fiscal 2025 net revenues, with sales through retail and wholesale businesses in Europe and emerging markets[170] - Asia segment represented approximately 24% of Fiscal 2025 net revenues, primarily from retail and wholesale sales in Asia, Australia, and New Zealand[170] Financial Performance - For the three months ended September 27, 2025, the company reported net revenues of $2.011 billion, a 16.5% increase compared to $1.726 billion for the same period in 2024[180] - Net income for the three months ended September 27, 2025, was $207.5 million, up from $147.9 million in the prior year, resulting in net income per diluted share of $3.32, an increase of $1.01[184] - Total net revenues increased by $491.6 million, or 15.2%, to $3.730 billion for the six months ended September 27, 2025, compared to the prior fiscal year period[223] - Net income rose to $427.9 million for the six months ended September 27, 2025, compared to $316.5 million in the prior year, marking an increase of $111.4 million[241] Cost and Profitability - Gross profit as a percentage of net revenues increased by 100 basis points to 68.0% for the three months ended September 27, 2025, driven by average unit retail growth and favorable product mix[182] - Selling, general, and administrative expenses as a percentage of net revenues declined by 160 basis points to 53.9% for the three months ended September 27, 2025, due to operating leverage on higher net revenues[183] - Operating income increased by $66.8 million, or 37.3%, to $245.7 million, with operating income as a percentage of net revenues rising to 12.2%[211] - Gross profit rose by $387.2 million, or 17.4%, to $2.609 billion, with a gross profit margin of 69.9%, up from 68.6%[231] Operational Efficiency - The company is executing a multi-year Next Generation Transformation project aimed at optimizing inventory levels and improving operational efficiency[172] - The company faces risks from inflationary pressures, including increases in raw material and transportation costs[159] - The global economic environment remains challenging, with ongoing inflationary pressures and geopolitical tensions impacting consumer sentiment and spending[175] Cash Flow and Liquidity - The company ended the second quarter of Fiscal 2026 with a net cash and short-term investments position of $407.8 million, down from $940.4 million at the end of Fiscal 2025[187] - Net cash provided by operating activities was $229.3 million during the six months ended September 27, 2025, compared to $374.5 million in the same period of 2024[188] - Cash and cash equivalents decreased by $479.5 million to $1.443 billion as of September 27, 2025, primarily due to stock repurchases and capital expenditures[244] Shareholder Returns - The quarterly cash dividend was increased from $0.825 to $0.9125 per share, reflecting the company's commitment to returning value to shareholders[267] - The remaining availability under the Class A common stock repurchase program was approximately $1.539 billion as of September 27, 2025, following an expansion allowing for an additional $1.500 billion in repurchases[265] Tax and Equity - The effective tax rate decreased to 14.6% from 21.4%, reflecting a 680 basis point improvement[197] - The company’s equity decreased to $2.582 billion as of September 27, 2025, from $2.589 billion as of March 29, 2025, due to share repurchase activity and dividends declared[189] Investment and Financing - As of September 27, 2025, the company had $750 million available under its Global Credit Facility, with the ability to expand this to $1.500 billion[262] - The company has no financial covenants under its Global Credit Facility and Pan-Asia Borrowing Facilities, providing flexibility in its financing[263] - The company recorded $243.7 million in payment obligations under its supplier finance program as of September 27, 2025, up from $181.0 million in March 2025[259] Foreign Exchange and Risk Management - The company uses forward foreign currency exchange contracts to hedge against exchange rate fluctuations, primarily related to the Euro and Japanese Yen[275] - The company has established policies for managing foreign exchange risk, including transaction limits and credit quality controls[277] - The investment objectives include diversification to minimize liquidity and credit risk while achieving maximum returns[281]

Financial Performance - Net income for the three months ended September 2025 was $12,461, compared to $8,535 for the same period in 2024, reflecting a year-over-year increase of 46.5%[9] - Net income for the nine months ended September 30, 2025, was $39,949,000, an increase from $31,558,000 for the same period in 2024, representing a growth of approximately 26.5%[13] - Earnings per share (EPS) for the nine months ended September 2025 was $1.07, up from $0.85 in the same period of 2024, indicating a growth of 25.9%[8] - Total comprehensive income for the nine months ended September 2025 was $78,129, compared to $53,161 for the same period in 2024, showing an increase of 47%[9] - Total consolidated revenues for the nine months ended September 30, 2025, were $200.1 million, an increase from $175.2 million in the same period of 2024, representing a growth of approximately 14.2%[138] Asset and Equity Growth - Total assets increased to $5,235,575,000 as of September 30, 2025, up from $5,118,924,000 on December 31, 2024, representing a growth of 2.29%[7] - Total stockholders' equity grew to $465,949,000, up from $406,028,000, a significant increase of 14.69%[7] - The total stockholders' equity as of September 30, 2025, was $465,949,000, up from $439,678,000 as of September 30, 2024, representing an increase of approximately 6%[11] - The balance of common stock as of September 30, 2025, was $366,214,000, up from $365,542,000 as of September 30, 2024[11] Loan and Deposit Activity - Net loans rose to $3,298,252,000, an increase of 2.03% from $3,232,483,000 in the previous period[7] - Total deposits reached $4,400,515,000, reflecting a 3.13% increase from $4,266,779,000[7] - The company experienced a net change in deposits of $133,736,000 for the nine months ended September 30, 2025, compared to $184,451,000 for the same period in 2024, reflecting a decrease of approximately 27.5%[13] - Total loans increased to $3,327,099, up from $3,258,121, representing a growth of 2.1% year-over-year[32] Credit Losses and Provisions - The allowance for credit losses increased to $39,528,000 from $35,863,000, indicating a rise of 7.41%[7] - The provision for credit losses for the nine months ended September 2025 was $7,932, compared to $5,109 in the same period of 2024, reflecting a rise of 55.1%[8] - The provision for credit losses for the three months ended September 30, 2025, was $1,501, compared to a provision of $6,807 for the same period in 2024, showing a decrease of 77.9%[35] - The company reported a provision for credit losses of $5,109,000 for the nine months ended September 30, 2025, down from $7,932,000 for the same period in 2024, indicating a decrease of approximately 35.5%[13] Noninterest Income and Expenses - Total noninterest income for the three months ended September 30, 2025, was $11,430 thousand, compared to $12,340 thousand for the same period in 2024, reflecting a decrease in service charges and trust fees[75] - For the nine months ended September 30, 2025, total noninterest income was $34,032 thousand, an increase from $30,302 thousand in the same period of 2024, driven by higher trust fees and debit card fees[75] - Total noninterest expenses for the nine months ended September 2025 were $87,381, an increase from $80,517 in the same period of 2024, which is a rise of 8.5%[8] Securities and Investments - The available-for-sale securities portfolio had an amortized cost of $1,497,403, with a fair value of $1,301,766, resulting in gross unrealized losses of $199,767 as of September 30, 2025[26] - The Company reported proceeds from sales of available-for-sale securities of $28,750 for the three months ended September 30, 2025, with gross losses of $960[26] - The Company has not recorded an allowance for credit losses on available-for-sale securities as of September 30, 2025, as unrealized losses are attributed to noncredit-related factors[29] Cash and Liquidity - The company has maintained a strong liquidity position with total cash and cash equivalents of $92,345,000, up from $85,738,000, an increase of 7.88%[7] - The ending cash and cash equivalents as of September 30, 2025, were $92,345,000, down from $189,136,000 as of September 30, 2024, indicating a decrease of approximately 51%[13] Mergers and Acquisitions - The Company acquired Crest Retirement Advisors, LLC for $600,000, with an additional $400,000 in contingent consideration[24] - The Company announced a definitive merger agreement with Middlefield Banc Corp., valued at approximately $299.0 million, expected to close in the first quarter of 2026[157][158] Regulatory Capital Ratios - As of September 30, 2025, the common equity tier 1 capital ratio for the consolidated entity is 11.62%, significantly above the minimum requirement of 4.5%[132] - The total risk-based capital ratio for the consolidated entity stands at 15.08%, exceeding the minimum requirement of 8.0%[132] - The bank's tier 1 leverage ratio is reported at 9.12%, well above the minimum requirement of 4.0%[132]

Financial Performance - Net income for Q3 2025 was $6,201, an increase of $338 or 5.8% from $5,863 in Q3 2024, driven by higher operating revenues and lower income taxes [81]. - For the first nine months of 2025, net income was $14,891, a decrease of $292 or 1.9% from $15,183 in the same period of 2024, impacted by higher operating expenses and interest on debt [87]. Revenue Growth - Operating revenues for Q3 2025 increased by $646 or 3.3% to $20,361, primarily due to customer base growth and a $673 increase from the distribution system improvement charge (DSIC) approved by PPUC [82]. - Operating revenues for the first nine months of 2025 increased by $1,923 or 3.4% to $58,016, driven by customer base growth and $1,590 from the DSIC [89]. Customer Base Expansion - The average number of water customers served increased by 1,101 to 73,684 in 2025, while wastewater customers rose by 530 to 7,115, mainly due to acquisitions [82]. - The Company signed agreements to acquire wastewater and water assets, expected to add approximately 100 and 140 customers respectively, with closings anticipated in Q2 2026 [98][99]. Operating Expenses - Operating expenses for Q3 2025 rose by $787 or 6.7% to $12,447, attributed to higher distribution system maintenance, depreciation, and wages [83]. - Interest on debt for the first nine months of 2025 rose by $1,006 or 15.4% to $7,555, due to increased long-term debt and higher interest rates [91]. Debt and Capitalization - Interest on debt increased by $372 or 16.6% to $2,615 in Q3 2025, primarily due to an increase in long-term debt outstanding [84]. - Common stockholders' equity as a percentage of total capitalization decreased to 50.9% as of September 30, 2025, from 52.6% as of December 31, 2024 [109]. - The Company's total long-term debt as a percentage of total capitalization was 49.1% as of September 30, 2025, up from 47.4% at the end of 2024 [115]. - The Company has a committed line of credit of $50,000, with $37,430 borrowed as of September 30, 2025, and an interest rate of 5.45% [111]. Investments and Expenditures - The Company invested $37,102 in construction expenditures for main extensions and upgrades for the nine months ended September 30, 2025 [103]. - Anticipated construction expenditures for the remainder of 2025 are approximately $10,000, primarily funded through internally-generated funds [104]. - Internally-generated funds from operations increased to $21,432 during the first nine months of 2025, compared to $20,391 in the same period of 2024 [108]. Regulatory and Environmental Factors - Effective October 1, 2025, the Company's tariff included a DSIC on revenues of 4.89% [96]. - A drought watch was declared for 29 counties in Pennsylvania, which may impact future revenues and operating expenses [129]. - The Company maintains a substantial deferred income tax asset due to accelerated depreciation from the Tax Cuts and Jobs Act of 2017 [118]. Credit Rating - Standard & Poor's affirmed the Company's credit rating at A- with a stable outlook as of July 30, 2025 [121].

Financial Results Announcement - The York Water Company announced its third quarter and first nine months 2025 financial results on November 6, 2025[5] - The press release detailing the financial results is incorporated by reference in the Current Report on Form 8-K[5] Financial Metrics - The report does not include specific financial metrics or performance indicators in the provided content[5]

Business Segments - The company operates in three business segments: Capital Markets, Asset Management, and Principal Investing, with a focus on capital markets and asset management services [363]. - The Capital Markets segment includes unrealized and realized gains and losses on investments, with a notable focus on SPAC-related activities [367][376]. - The company has established SPAC Series Funds to invest in SPACs, which have become a significant part of the Principal Investing segment [378]. Revenue Generation - Revenue generation is primarily through fixed income sales, trading, advisory services, and asset management fees, with significant reliance on market conditions and trading volumes [367][374]. - The mortgage group's revenue is highly dependent on U.S. mortgage origination volumes, which are sensitive to interest rates and economic conditions [384]. - Rising interest rates have negatively impacted the fair value of fixed income securities and reduced mortgage activity, affecting overall profitability [386]. - Management fees are contingent on the performance of Investment Vehicles, with potential declines in demand affecting future fee income [374]. Market Conditions and Competition - Recent market conditions have led to margin pressures in the fixed income brokerage business, with expectations of continued competition impacting profitability [382]. - The company's trading activities are sensitive to market movements, with proprietary trading and riskless trades contributing to revenue generation [372]. Financial Performance - Total revenues increased by $111,767, or 183%, to $172,824 for the nine months ended September 30, 2025, compared to $61,057 for the same period in 2024 [420]. - Net trading revenue rose by $6,066 to $33,528 for the nine months ended September 30, 2025, compared to $27,462 for the same period in 2024, driven by significant gains in the gestation repo segment [421]. - New issue and advisory revenue surged by $245,311 to $298,658 for the nine months ended September 30, 2025, compared to $53,347 for the same period in 2024, primarily due to CCM's activities [433]. - Operating income increased to $29,362 for the nine months ended September 30, 2025, compared to a loss of ($2,520) for the same period in 2024, reflecting a significant turnaround [419]. - Net income attributable to Cohen & Company Inc. rose to $6,330 for the nine months ended September 30, 2025, compared to $1,824 for the same period in 2024, marking a 247% increase [419]. Operating Expenses - Total operating expenses increased by $79,885 to $143,462 for the nine months ended September 30, 2025, compared to $63,577 for the same period in 2024, primarily driven by increased compensation and benefits [419]. - Compensation and benefits rose by $76,220, or 175%, to $119,673 for the nine months ended September 30, 2025, compared to $43,453 in 2024 [453]. - Business development, occupancy, and equipment expenses increased by $1,259, or 27%, to $5,858 for the nine months ended September 30, 2025, compared to $4,599 in 2024 [456]. Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended September 30, 2025, was $29,405, up from $5,042 in 2024, indicating improved operational efficiency [556]. - Cash and cash equivalents increased to $54,688 as of September 30, 2025, from $19,590 at the end of 2024, demonstrating enhanced liquidity [554]. - The company reported a net cash flow of $35,098 for the nine months ended September 30, 2025, compared to $3,640 in 2024, indicating strong cash generation [556]. SPAC Activities - Columbus Circle Capital Corp I completed the sale of 25,000,000 units in its IPO, with the company acting as the lead underwriter [387][388]. - The Columbus Circle SPAC entered a definitive business combination agreement with ProCap Financial, which will become publicly traded [401]. - Proceeds from the Business Combination are expected to be used by ProCap Financial to purchase bitcoin, aligning with its business strategy [402]. Tax and Income - Income tax expense increased by $1,208 million to $1,643 million for the nine months ended September 30, 2025, compared to $435 million in 2024 [469]. - The net income before tax for the Operating LLC was $15,998 million for the nine months ended September 30, 2025 [479]. - The net income after tax for the Operating LLC was $14,397 million for the nine months ended September 30, 2025 [479]. Future Financing Needs - The company may need to raise additional debt or equity financing to capitalize on attractive investment opportunities [557]. - Future merger or acquisition activities may require additional funding through equity or debt offerings if liquidity sources are insufficient [557].

Financial Performance - As of September 30, 2025, Lipocine had $15.1 million in unrestricted cash, down from $21.6 million at December 31, 2024, representing a decrease of approximately 30.3%[7] - The net loss for the third quarter ended September 30, 2025, was $3.2 million, or ($0.59) per diluted share, compared to a net loss of $2.2 million, or ($0.44) per diluted share, for the same period in 2024, indicating an increase in loss of 45.5%[7] - For the nine months ended September 30, 2025, Lipocine reported a net loss of $7.3 million, or ($1.35) per diluted share, compared to a net loss of $1.8 million, or ($0.33) per diluted share, for the same period in 2024, representing an increase in loss of 305.6%[13] - Total revenues for the three months ended September 30, 2025, were $114,574, compared to $0 in the same period of 2024, indicating a significant increase[26] - Total revenue for the nine months ended September 30, 2025, was $831,000, a significant decrease from $7.7 million in the same period of 2024, primarily due to a drop in license revenue from $7.5 million to $500,000[14] - License revenue for the nine months ended September 30, 2025, was $500,000, down from $7,500,000 in the same period of 2024[26] - The net loss attributable to common shareholders for the three months ended September 30, 2025, was $3,186,832, compared to a loss of $2,218,818 in the same period of 2024[26] - Comprehensive loss for the three months ended September 30, 2025, was $(3,180,962), compared to $(2,199,157) in the same period of 2024[26] Expenses - Research and development expenses increased to $2.7 million for the third quarter of 2025 from $1.6 million in the same quarter of 2024, reflecting a rise of 68.8% primarily due to ongoing clinical trials[9] - Operating expenses for the three months ended September 30, 2025, totaled $3,475,614, an increase from $2,630,473 in the same period of 2024[26] - Research and development expenses for the three months ended September 30, 2025, were $2,707,777, up from $1,585,233 in the same period of 2024[26] - General and administrative expenses decreased to $0.8 million for the third quarter of 2025 from $1.1 million in the same quarter of 2024, a reduction of 27.3%[11] - General and administrative expenses for the three months ended September 30, 2025, were $767,837, down from $1,045,240 in the same period of 2024[26] Assets and Cash Position - Lipocine's total assets decreased to $16.1 million as of September 30, 2025, from $22.5 million at December 31, 2024, a decline of approximately 28.5%[24] Product Development - Lipocine is developing LPCN 1154 for postpartum depression, with top-line data expected in Q2 2026 and plans for a 505(b)(2) NDA submission in the U.S. in 2026[4] - The company is exploring partnerships for LPCN 1154 and LPCN 2401, which targets obesity management and is expected to enter a proof-of-concept Phase 2 study[10] Revenue Sources - Royalty revenue from TLANDO sales was $115,000 during the quarter ended September 30, 2025, with no royalty revenue recorded in the comparable period in 2024[8]

Regulatory Approvals and Product Launches - TLANDO received FDA approval on March 28, 2022, and was commercially launched on June 7, 2022[95][109]. - The FDA requires an efficacy and safety study of oral LPCN 1154 in the target population for 505(b)(2) NDA submission[120]. - FDA granted orphan drug designation to LPCN 1107, providing development incentives including tax credits and waiver of user fees[174]. Licensing Agreements and Financials - Verity Pharma paid an initial payment of $2.5 million upon signing the Verity License Agreement and an additional $5 million on February 1, 2024[111]. - The company is eligible to receive milestone payments of up to $259 million based on sales and development milestones under the Verity License Agreement[111]. - The company entered into multiple licensing agreements for TLANDO, including a $2.5 million initial payment from Verity Pharma and potential milestone payments of up to $259 million[208]. - Revenue generated from license fees, royalties, and milestone payments totaled $53.9 million since inception through September 30, 2025[177]. - Total revenue for the nine months ended September 30, 2025 was $831,287, a decrease of $6.9 million compared to $7.7 million in 2024[196]. Research and Development - LPCN 1154 is being developed as a fast-acting oral antidepressant for postpartum depression with a 48-hour treatment duration[103]. - The company aims to leverage its Lip'ral drug delivery technology platform to develop differentiated products for conditions with large unmet medical needs[102]. - LPCN 2101 is being evaluated for epilepsy, including drug-resistant epilepsy and women with epilepsy[103]. - LPCN 2401 demonstrated a 4.4% increase in lean mass and a 6.7% decrease in fat mass in a Phase 2 study, indicating its potential for improving body composition in patients using GLP-1 therapies[154]. - LPCN 1148 met its primary endpoint by increasing skeletal muscle index (L3-SMI) relative to placebo (P<.01) in male cirrhotic patients, showing its efficacy in managing sarcopenia[164]. Clinical Studies and Outcomes - Positive data from a qEEG study of oral brexanolone indicated robust CNS activity, suggesting effective oral delivery of endogenous GABAA receptor PAMs[118]. - As of the end of Q3 2025, one-third of planned participants have been randomized in the Phase 3 safety and efficacy study for LPCN 1154[120]. - The Phase 2 study of LPCN 1148 showed fewer occurrences of hepatic encephalopathy (OHE) events in treated patients, suggesting improved clinical outcomes[165]. Market Opportunities and Unmet Needs - Approximately 600,000 women are affected by postpartum depression (PPD) annually, with about 240,000 diagnosed and 144,000 treated with prescription medication[126]. - LPCN 1154 aims to provide rapid relief with a 48-hour duration through a convenient oral therapy, addressing the unmet need for fast-acting treatments for PPD[128]. - Drug-resistant epilepsy (DRE) affects 30-40% of epilepsy patients in the U.S., contributing to $24.5 billion in annual healthcare costs[131]. - Approximately 74% of U.S. adults aged 20 and older are either obese or overweight, highlighting a significant market opportunity for obesity management solutions[157]. Financial Performance and Expenses - Research and development expenses amounted to approximately $160.5 million since inception through September 30, 2025[178]. - Research and development expenses for the three months ended September 30, 2025 increased by $1.35 million primarily due to LPCN 1154 Phase 3 clinical trial costs[190]. - General and administrative expenses for the three months ended September 30, 2025 decreased by $277,403 compared to the same period in 2024[191]. - As of September 30, 2025, the company had $15.1 million in unrestricted cash, down from $21.6 million as of December 31, 2024[203]. Cash Flow and Liquidity - For the nine months ended September 30, 2025, net cash used in operating activities was $6.8 million, compared to $2.9 million for the same period in 2024[217]. - The company expects to continue incurring operating losses as it advances the clinical development of multiple product candidates, including LPCN 1154 and LPCN 2401[202]. - The company has sufficient liquidity to meet projected operating requirements through at least November 6, 2026, but may need to raise additional capital[214]. Market Risks and Accounting Policies - The company is exposed to various market risks, including potential losses from adverse changes in interest rates, but does not engage in derivatives for trading or speculative purposes[227]. - There have been no material changes to the company's market risk during the first nine months of 2025, as noted in the 2024 Form 10-K[228].

Revenue Growth - Total revenue for the three months ended September 30, 2025, was $131.7 million, an increase of $15.3 million or 13.1% compared to $116.4 million for the same period in 2024[128][146]. - Annual recurring revenue (ARR) as of September 30, 2025, was $528.1 million, representing a 14.2% increase from $462.4 million as of September 30, 2024[130]. - Subscription revenue for the three months ended September 30, 2025, was $130.5 million, a 13.5% increase from $115.0 million in the same period in 2024[146][147]. - Total revenue increased by $31.5 million, or 9.0%, for the nine months ended September 30, 2025, compared to the same period in 2024[162]. - Subscription revenue increased by $33.3 million, or 9.7%, for the nine months ended September 30, 2025, representing 99.0% of total revenue[163]. Customer Metrics - The number of customers with ARR over $50,000 increased by 14.8% to 2,611 as of September 30, 2025, up from 2,275 as of September 30, 2024[131]. - The annual dollar-based net revenue retention rate for subscription products was approximately 102% for the trailing twelve-month period ended September 30, 2025, down from 105% for the same period in 2024[148][164]. Operating Income and Expenses - Operating income for the three months ended September 30, 2025, was $11.6 million, down from $23.9 million for the same period in 2024[133]. - Operating expenses rose by $17.8 million, or 24.5%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by increases in sales and marketing, research and development, and general and administrative expenses[152]. - Total operating expenses for the nine months ended September 30, 2025, increased by $45.7 million, or 20.2%, to $271.6 million, representing 71.3% of revenue compared to 64.6% in 2024[167]. Net Income and Tax - Net income for the three months ended September 30, 2025, was $1.4 million, a decrease from $10.8 million for the same period in 2024, primarily due to increased expenses[133]. - The effective tax rate increased to 82.2% for the three months ended September 30, 2025, primarily due to an increase in unbenefited losses in the United States[159]. - Income tax expense decreased by $4.8 million, with an effective tax rate of 293.0% for the nine months ended September 30, 2025, primarily due to an increase in unbenefited losses in the U.S.[174]. Cash Flow and Investments - Cash flows from operations for the three months ended September 30, 2025, were $24.0 million, compared to $22.0 million for the same period in 2024[134]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $67.9 million, an increase from $53.5 million in 2024[195]. - Net cash used in investing activities increased to $22.0 million for the nine months ended September 30, 2025, compared to $15.6 million in 2024, primarily due to increased capitalized research and development costs[199]. - The company repurchased $10.0 million of common stock during the three months ended September 30, 2025, and $20.0 million during the nine months ended September 30, 2025, under its share repurchase program[192]. Acquisitions and Future Plans - The company completed the acquisition of Adlumin on November 20, 2024, contributing to revenue growth and customer expansion[130]. - The company expects to continue growing its sales and marketing organization to drive new customer additions and retain existing customers[139]. - Research and development expenses are anticipated to increase as the company brings new product offerings to market and enhances security features[140]. - The company has not entered into any material definitive agreements regarding potential investments or acquisitions but may consider such arrangements in the future[193].