Financial Performance - Net sales increased by 7.0% to $122.5 million in Q3 2025 compared to $114.6 million in Q3 2024, with growth across all reportable segments: Wholesale, Retail, and Contract Manufacturing [74]. - Year-to-date net sales for 2025 reached $342.3 million, a 5.1% increase from $325.7 million in 2024, primarily driven by growth in the Retail segment [80]. - Total net sales for the nine months ended September 30, 2025 were $342.3 million, a 5.1% increase from $325.7 million in the prior year, driven by increased demand in wholesale and retail segments [95]. - Retail net sales rose by 15.1% to $95.9 million for the nine months ended September 30, 2025, attributed to growth in the Lehigh CustomFit business and enhanced e-commerce sales [96]. - Wholesale segment net sales increased by 6.1% to $89.1 million in Q3 2025, attributed to higher demand and tariff-related price increases [84]. - Operating income for the nine months ended September 30, 2025, was $27.6 million, or 8.1% of net sales, compared to $22.6 million, or 6.9% of net sales, in the prior year [83]. Margins and Expenses - Gross margin improved by 210 basis points to 40.2% in Q3 2025, driven by favorable shifts in product mix and price increases, particularly in rubber-boot brands [74][77]. - Operating expenses increased to $37.5 million, or 30.6% of net sales, in Q3 2025, up from $33.6 million, or 29.3% of net sales, in Q3 2024, due to higher logistics and selling costs [78][91]. - Total operating expenses for the nine months ended September 30, 2025 were $112.0 million, representing 32.7% of net sales, an increase from 31.7% in the prior year [102]. - Wholesale gross margin increased to $94.8 million, or 40.0% of net sales, compared to $86.0 million, or 37.0% of net sales, for the same period last year, reflecting a favorable product mix [99]. Cash Flow and Debt - Net cash used in operating activities for the nine months ended September 30, 2025 was $1.3 million, a significant decrease from $28.4 million provided in the same period last year [111]. - An increase in inventory resulted in a cash use of $26.9 million for the nine months ended September 30, 2025, compared to $2.6 million in the prior year, driven by tariffs and anticipated demand [112]. - As of September 30, 2025, the company maintained cash and cash equivalents of $3.3 million and had $40.1 million available under its ABL Facility [106]. - Total debt decreased by 7.5% to $139.0 million as of September 30, 2025, reflecting continued debt repayments [74]. - Interest expense for the three months ended September 30, 2025 decreased to $2.5 million from $3.2 million in the prior year, a reduction of 21.6% due to lower debt levels and interest rates [92]. Tax and Legal Matters - Income tax expense increased by 25.9% to $2.0 million for the three months ended September 30, 2025, compared to $1.6 million in the same period last year [93]. - The effective tax rate decreased to 22.1% for the nine months ended September 30, 2025, down from 23.4% in the previous year, primarily due to the earnings mix between the U.S. and international subsidiaries [105]. - The Company is contingently liable for lawsuits, taxes, and other matters arising in the normal course of business, with no off-balance sheet arrangements or related party transactions affecting financial results [117]. Strategic Initiatives - The company is implementing sourcing shifts to leverage manufacturing facilities in the Dominican Republic and Puerto Rico to mitigate tariff impacts [68]. - A share repurchase program was announced on February 25, 2025, allowing for the repurchase of up to $7.5 million of the Company's outstanding common stock [116]. Accounting and Market Risk - The Company has identified critical accounting policies that impact estimates and assumptions in financial reporting, with historical results not materially differing from estimates [118]. - There have been no material changes to market risk as disclosed in the Annual Report for the year ended December 31, 2024 [121].

Financial Performance - Total revenues for the three months ended September 30, 2025, were $430,000, a decrease of 48.7% compared to $838,000 for the same period in 2024[14]. - The company reported a net income of $14,184,000 for the three months ended September 30, 2025, compared to a net loss of $1,087,000 for the same period in 2024[14]. - For the nine months ended September 30, 2025, the company reported a net income of $10.6 million compared to a net loss of $4.9 million for the same period in 2024[22]. - The company reported revenues from discontinued operations of $226,000 for the three months ended September 30, 2025, compared to $85,000 for the same period in 2024, representing a 165% increase[48]. - The company reported a net income from discontinued operations of $250,000 for the three months ended September 30, 2025, compared to a loss of $44,000 for the same period in 2024[48]. Revenue Breakdown - License fees accounted for $406,000, representing 94.4% of total revenue, down from $731,000 or 87.2% in the prior year[73]. - Net revenues from IT & Industrial in North America for the nine months ended September 30, 2025, were $329,000, down from $589,000 in 2024[36]. - In the Asia Pacific region, net revenues from Automotive for the nine months ended September 30, 2025, were $313,000, a decrease from $597,000 in 2024[36]. - Japan contributed $277,000 in revenue, accounting for 64.4% of total revenue for the three months ended September 30, 2025[62]. Expenses and Margins - Gross margin for the nine months ended September 30, 2025, was $1,518,000, down from $2,389,000 for the same period in 2024[14]. - Gross margin for the three months ended September 30, 2025, was $421,000, a decline of 48.3% from $815,000 in the same period last year[73]. - Research and development expenses for the three months ended September 30, 2025, were $794,000, slightly down from $822,000 in the same period of 2024[14]. - Research and development expenses increased by 5.6% to $2.8 million for the nine months ended September 30, 2025, compared to $2.7 million in 2024[81]. - Total costs and expenses for the three months ended September 30, 2025, were $2,127,000, compared to $2,054,000 for the same period in 2024, an increase of 3.5%[60]. Assets and Liabilities - The total current assets increased to $32,193,000 as of September 30, 2025, compared to $17,685,000 as of December 31, 2024[12]. - The company’s total liabilities were $6,016,000 as of September 30, 2025, compared to $1,939,000 as of December 31, 2024[12]. - Cash and cash equivalents decreased to $11,585,000 as of September 30, 2025, from $16,427,000 as of December 31, 2024[12]. - The accumulated deficit improved to $(213,497,000) as of September 30, 2025, from $(224,080,000) as of December 31, 2024[12]. - The company has an accumulated deficit of approximately $213.5 million as of September 30, 2025, down from $224.1 million at the end of 2024[31]. Gains and Other Income - The company recognized a gain from patent assignment of $19,389,000 for the three months ended September 30, 2025[14]. - The company recognized a gain of approximately $19.4 million from a patent assignment during the third quarter of 2025[39]. - Gain from patent assignment was $19.4 million for the nine months ended September 30, 2025[86]. Shareholder and Market Activities - The company has entered into an At The Market Offering Agreement with Ladenburg Thalmann & Co. Inc. to issue and sell up to approximately $10 million of shares of common stock[51]. - The company has an At-the-Market Offering Program allowing it to issue and sell up to $10 million of common stock, with a commission of 3.0% on gross sales price per share sold[107][108]. - No shares were sold under the Ladenburg ATM Facility during the three and nine months ended September 30, 2025, while 1,423,441 shares were sold in the same periods of 2024, generating net proceeds of $5.8 million[110]. Legal and Compliance - The company has identified material weaknesses in internal controls over financial reporting, particularly in the design and operation of controls related to income tax calculations and management override risks[119][120]. - The company is involved in ongoing legal proceedings related to patent infringement against Apple and Samsung, with a settlement reached with Samsung in August 2025[115]. Operational Considerations - The ongoing war in Ukraine may exacerbate supply chain disruptions, impacting the company's operations and financial conditions[72]. - The company has sufficient cash to meet its obligations for at least one year from the date of the financial statements, despite operating losses and negative cash flows from operations[97]. - The company may need additional capital sources beyond cash on hand and its ATM Facility if operations do not become cash flow positive, potentially leading to equity investments or debt arrangements[98].

Revenue Performance - Revenue for Q3 2025 was $533 million, a decrease of $22 million or 4.0% compared to $555 million in Q3 2024, driven by lower Net Commercial Activity and project revenue[182][193]. - Revenue for the nine months ended September 30, 2025, was $1,609 million, a decrease of $43 million or 2.6% compared to $1,652 million in the prior year period[207]. - Total Employer Solutions Revenue for Q3 2025 was $533 million, a decrease of $22 million from $555 million in Q3 2024, primarily due to declines in project revenue[230]. Recurring Revenues - Recurring revenues decreased by $15 million or 3.0%, from $504 million in Q3 2024 to $489 million in Q3 2025, primarily due to lower Net Commercial Activity[194]. - Recurring revenues decreased by $17 million or 1.1%, from $1,518 million in the prior year period to $1,501 million, primarily due to lower Net Commercial Activity[208]. Expenses and Costs - Cost of services, exclusive of depreciation and amortization, decreased by $31 million or 8.7% in Q3 2025 compared to the prior year, attributed to lower compensation expenses and productivity initiatives[195]. - Selling, general and administrative expenses decreased by $55 million or 38.7% in Q3 2025, driven by lower professional fees and a reduction in compensation expenses[197]. - Cost of services, excluding depreciation and amortization, decreased by $56 million or 5.3% for the nine months ended September 30, 2025, driven by productivity initiatives and lower revenues[209]. - Selling, general and administrative expenses decreased by $113 million or 26.0% for the nine months ended September 30, 2025, primarily due to lower compensation expenses and professional fees[211]. Goodwill Impairment - A non-cash goodwill impairment charge of $1,338 million was recorded in Q3 2025, with no impairment recognized in Q3 2024[199]. - The company recorded a non-cash goodwill impairment charge of $2,321 million for the nine months ended September 30, 2025, with no impairment recognized in the prior year[213]. - The company reported a Goodwill impairment charge of $1,338 million for Q3 2025, contributing to a net loss from continuing operations of $(1,054) million[226]. Loss from Operations - Loss from continuing operations before taxes was $1,253 million in Q3 2025, compared to a loss of $53 million in Q3 2024, primarily due to the goodwill impairment charge[204]. - Loss from continuing operations before taxes was $2,349 million for the nine months ended September 30, 2025, compared to a loss of $203 million in the prior year[219]. Tax and Interest - Income tax benefit was $204 million for the nine months ended September 30, 2025, with an effective tax rate of 9%, lower than the 21% U.S. statutory corporate income tax rate[220]. - The One Big Beautiful Bill Act (OBBBA) resulted in a deferred tax benefit of approximately $12 million for the three months ended September 30, 2025[221]. - Interest expense decreased by $15 million for the nine months ended September 30, 2025, primarily due to partial debt repayment and loan repricing[217]. Cash Flow and Liquidity - Free Cash Flow for the nine months ended September 30, 2025, was $151 million, a significant improvement from $(20) million in the same period of 2024[237]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $236 million, compared to $75 million in the prior year, driven by lower separation costs[236]. - Cash provided by operating activities was $236 million for the nine months ended September 30, 2025, compared to $75 million for the same period in 2024[252]. - Cash used in investing activities was $98 million for the nine months ended September 30, 2025, compared to cash provided of $877 million in the prior year[253]. - Cash used in financing activities was $288 million for the nine months ended September 30, 2025, down from $1,028 million in the same period in 2024[254]. - The company anticipates that its liquidity position will remain strong, supported by cash flows from operations and availability under its revolving credit facility[239]. Share Repurchase and Dividends - As of September 30, 2025, the company repurchased 6,580,136 shares for $25 million and 13,881,417 shares for $65 million during the nine months[245]. - The company authorized a total of $281 million for share repurchases as of February 13, 2025[244]. - The quarterly dividend of $0.04 per share was approved for payment on December 15, 2025[248]. Adjusted Metrics - Adjusted Net Income from Continuing Operations for Q3 2025 was $62 million, compared to $48 million in Q3 2024, reflecting a 29.2% increase[226]. - Adjusted EBITDA from Continuing Operations for Q3 2025 was $138 million, up from $118 million in Q3 2024, resulting in an Adjusted EBITDA Margin of 25.9% compared to 21.3% in the prior year[228]. - Gross Profit for Q3 2025 increased to $178 million from $174 million in Q3 2024, with an Adjusted Gross Profit of $206 million, up from $200 million[233]. - Adjusted Gross Profit Margin for Q3 2025 was 38.6%, an increase from 36.0% in Q3 2024, indicating improved operational efficiency[233]. Other Financial Information - The change in fair value of the Tax Receivable Agreement resulted in a gain of $66 million in Q3 2025, an increase of $93 million compared to a loss of $27 million in Q3 2024[201]. - The change in fair value of the tax receivable agreement resulted in a gain of $34 million for the nine months ended September 30, 2025, an increase of $85 million compared to a loss of $51 million in the prior year[216]. - Depreciation and amortization expenses increased by $5 million or 21.7% in Q3 2025, primarily driven by capitalized software[196]. - Total operating expenses for Q3 2025 were $1,500 million, significantly higher than $216 million in Q3 2024, largely due to the goodwill impairment charge[182]. - The company has a remaining cash outflow of $49 million for 2025 related to its strategic partnership with Wipro[263]. - The company expects to make payments of approximately $164 million under the Tax Receivable Agreement in 2026[261].

Financial Performance - Revenues from continuing operations for Q3 2025 were $0.4 million, a decrease of 48.7% compared to Q3 2024[5] - Total revenues for the three months ended September 30, 2025, were $430 million, a decrease of 48% compared to $838 million for the same period in 2024[20] - Net income for the three months ended September 30, 2025, was $14.184 million, compared to a net loss of $1.087 million for the same period in 2024[23] - Operating income for the three months ended September 30, 2025, was $13.810 million, compared to an operating loss of $1.225 million for the same period in 2024[20] - Basic and diluted net income per share for the three months ended September 30, 2025, was $0.85, compared to a loss of $0.07 for the same period in 2024[20] Operating Expenses - Operating expenses from continuing operations for Q3 2025 were $2.1 million, an increase of 4.0% compared to Q3 2024[10] - Total operating expenses for the three months ended September 30, 2025, were $2.122 million, compared to $2.040 million for the same period in 2024[20] Cash and Assets - Cash and accounts receivable totaled $12.2 million as of September 30, 2025, down from $17.2 million as of December 31, 2024[12] - Cash and cash equivalents at the end of the period were $11.585 million, down from $17.599 million at the end of September 30, 2024[28] - Total current assets increased to $32.2 million as of September 30, 2025, compared to $17.7 million as of December 31, 2024[18] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2.843 million, an increase of 5.6% from $2.692 million for the same period in 2024[20] Gains and Losses - The gain from patent assignment to Aequitas was $15.5 million, which was paid in October 2025[5] - The company recognized a gain from patent assignment of $19.389 million for the three months ended September 30, 2025[20] - The company experienced a foreign currency translation adjustment loss of $33,000 for the three months ended September 30, 2025[23] Strategic Focus - The company is focusing on expanding its MultiSensing AI computer vision platform for the automotive sector[7] - The legacy business is experiencing a faster decline in revenues than anticipated, prompting a shift towards securing new partnerships in the automotive market[8] Non-Recurring Revenues - Revenues from non-recurring engineering for Q3 2025 were $24,000, a decrease of 77.6% compared to Q3 2024[9] - Cash used by operations in Q3 2025 was $1.5 million, compared to $1.3 million for Q3 2024[11]

Financial Performance - Dentsply Sirona reported a net loss of $428 million for the three months ended September 30, 2025, compared to a net loss of $495 million for the same period in 2024, reflecting a 13.5% improvement year-over-year[13]. - Total comprehensive loss for the nine months ended September 30, 2025, was $394 million, a decrease from $482 million in the same period of 2024, indicating an 18.3% reduction in losses[13]. - Net loss for the nine months ended September 30, 2025, was $453 million, compared to a loss of $482 million for the same period in 2024[19]. - The total comprehensive loss for the three months ended September 30, 2025, was $459 million, slightly higher than the $456 million reported in the same period of 2024[13]. - Comprehensive loss attributable to Dentsply Sirona was $458 million for the three months ended September 30, 2025, compared to $455 million in the prior year[13]. - For the nine months ended September 30, 2025, the net loss was $453 million, an improvement from a net loss of $482 million in the same period of 2024[13]. - The total comprehensive loss for the nine months ended September 30, 2025, was $395 million, compared to $484 million in the same period of 2024[13]. - The company continues to focus on improving its financial performance despite ongoing losses in both net and comprehensive categories[13]. Cash and Liquidity - Cash and cash equivalents increased to $363 million as of September 30, 2025, up from $272 million at the end of 2024, representing a 33.5% increase[15]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $134 million, down from $374 million in 2024[19]. - The company reported a net increase in cash and cash equivalents of $91 million for the nine months ended September 30, 2025[19]. - Total cash and cash equivalents at the end of the period was $363 million, compared to $296 million at the end of September 2024[19]. - The company had $736 million available under lines of credit as of September 30, 2025[190]. Sales and Revenue - Total net sales for the three months ended September 30, 2025, were $904 million, a decrease of 4.9% compared to $951 million in the same period of 2024[29]. - For the nine months ended September 30, 2025, total net sales were $2,719 million, down 5.9% from $2,888 million in 2024[29]. - The Orthodontic and Implant Solutions segment saw a significant decline, with net sales dropping by $36 million (15.0%) to $205 million for the three months ended September 30, 2025, primarily due to lower volumes of clear aligners following the suspension of Byte sales[143][145]. - The United States region experienced a notable decline in net sales, down $83 million (22.2%) to $291 million for the three months ended September 30, 2025, primarily due to lower volumes of Byte products and CAD/CAM equipment[147][148]. - The Essential Dental Solutions segment saw a decrease in net sales by $12 million (3.4%) to $357 million for the three months ended September 30, 2025, mainly due to lower sales of preventive and restorative products[141][142]. - Net sales in Europe increased by $35 million (9.9%) to $382 million for the three months ended September 30, 2025, primarily due to higher volumes of treatment centers and imaging equipment[150][151]. Expenses and Costs - SG&A expenses decreased by $35 million (8.8%) to $355 million for the three months ended September 30, 2025, and by $149 million (12.3%) to $1,055 million for the nine months ended September 30, 2025, primarily due to lower marketing expenses and headcount costs[158]. - R&D expenses decreased by $3 million (9.2%) to $37 million for the three months ended September 30, 2025, and by $13 million (10.9%) to $110 million for the nine months ended September 30, 2025, as the company continues to prioritize investments in digital workflow solutions and product development[160]. - The company incurred restructuring and other costs of $18 million for the nine months ended September 30, 2025, compared to $45 million in the same period of 2024, a decrease of 60%[50]. - Restructuring costs decreased to $5 million for the three months ended September 30, 2025, from $23 million in the same period of 2024, and to $18 million for the nine months ended September 30, 2025, from $45 million in 2024[163]. Assets and Liabilities - Total assets decreased to $5,653 million as of September 30, 2025, down from $5,753 million at December 31, 2024, a decline of 1.7%[15]. - Long-term debt increased to $2,017 million from $1,586 million, representing a 27.2% increase[15]. - The accumulated deficit grew to $1,385 million as of September 30, 2025, compared to $835 million at the end of 2024, indicating a 65.8% increase[15]. - Dentsply Sirona's total equity decreased to $1,478 million from $1,943 million, a decline of 23.8%[15]. - The company's total net debt to total capitalization ratio increased to 57.9% as of September 30, 2025, compared to 48.9% at December 31, 2024[190]. Impairments and Charges - Goodwill asset impairment for the nine months ended September 30, 2025, was $409 million, compared to $504 million in 2024[19]. - The Company recorded pre-tax goodwill impairment charges of $262 million for the three months ended September 30, 2025, and $409 million for the nine months ended September 30, 2025, primarily related to the Implant & Prosthetic Solutions reporting unit[161][162]. - An additional pre-tax goodwill impairment charge of $253 million was recorded for the same reporting unit as of September 30, 2025, driven by lower-than-expected volumes[87]. Legal and Regulatory Matters - The Company is involved in multiple securities litigations, including a consolidated class action in the SDNY Court, with claims alleging violations of U.S. securities laws from June 9, 2021, to May 9, 2022[92]. - The Company continues to incur significant legal fees related to these pending cases and may face substantial damages if any lawsuits are decided adversely[107][108]. - The IRS is examining the Company's U.S. federal income tax returns for 2015 and 2016, proposing an adjustment that could result in additional federal income taxes on a distribution of $451 million related to a stock redemption[109]. - The SEC concluded its investigation of the Company and does not intend to recommend any enforcement action against it as of October 14, 2025[93]. Market Conditions and Challenges - The Company has experienced higher prices for certain raw materials, negatively impacting margins, and is facing challenges due to macroeconomic conditions affecting consumer confidence and discretionary spending[124][125]. - The Company delivered a one-year notice of non-renewal for its distribution agreements with Patterson Companies, which could materially affect its business if new agreements are not secured[132]. - The Company's operations in Israel, which contributed approximately 3% of consolidated net sales, remain unaffected by geopolitical conflicts, although sales to Turkey have been impacted by import restrictions[129][130].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 ☐ 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 001-36860 IOVANCE BIOTHERAPEUTICS, INC. (Exact name of issuer as specified in its charter) (State or other jurisdiction of ...

Financial Performance - Adjusted EBITDA increased by $17 million to $326 million for the first nine months of 2025, with an adjusted EBITDA margin of 20.4%, up from 19.3% in the same period of 2024[92]. - Total revenue for the first nine months of 2025 decreased by $3 million to $1.60 billion, impacted by a $10 million reduction due to business exits; excluding this, revenue would have increased[93]. - Free cash flow rose by $32 million to $96 million in the first nine months of 2025, driven by improved operational performance[94]. - Net income for Q3 2025 was $33,766,000, a 276.5% increase from Q3 2024, while diluted EPS rose to $0.74, up 270.0% year-over-year[118]. - Adjusted diluted EPS for Q3 2025 was $1.09, a 29.8% increase from Q3 2024, reflecting benefits from pricing and cost management actions[118]. - Adjusted EBITDA for Q3 2025 reached $118,887,000, compared to $104,902,000 in Q3 2024, marking a 13.3% increase[123]. - Adjusted EBITDA margin improved to 22.0% in Q3 2025 from 19.9% in Q3 2024, reflecting enhanced operational efficiency[123]. - Total revenue for Q3 2025 was $279,945,000, a decrease of 5.8% compared to Q3 2024, and for the first nine months of 2025, it was $852,296,000, down 6.3% year-over-year[137]. Cost Management - Selling, general and administrative (SG&A) expenses decreased by 6.8% in Q3 2025 compared to Q3 2024, contributing to improved profitability[88]. - SG&A expense decreased by 6.8% in Q3 2025 and 6.3% in the first nine months compared to the same periods in 2024, driven by cost management actions[109]. - The company expects to realize annual cost savings of approximately $6 million in cost of sales and $14 million in SG&A expenses in 2025 compared to 2024[129]. - Restructuring and integration expenses dropped by 73.6% in Q3 2025 and 59.3% in the first nine months compared to 2024, reflecting alignment with growth strategy[112]. Debt and Cash Management - The company reduced net debt by $45 million from the previous year end, reflecting a commitment to enhancing financial performance[90]. - Cash and cash equivalents stood at $26 million as of September 30, 2025, with an additional $393 million available for borrowing under the revolving credit facility[99]. - Total debt as of September 30, 2025, was $1,449,785,000, down from $1,503,151,000 at the end of 2024, while net debt decreased to $1,423,982,000[122]. - As of September 30, 2025, total debt obligations were $1.47 billion, down from $1.52 billion as of December 31, 2024[146]. - The principal amount of fixed interest rate debt was $925 million at an average interest rate of 8.1% as of September 30, 2025[146]. Strategic Investments - The acquisition of assets from JPMorgan Chase's CheckMatch service for $25 million is expected to strengthen the B2B Payments segment[91]. - The company anticipates capital expenditures between $90 million and $100 million for the full year 2025, compared to $94 million in 2024[99]. - The company is focused on growth investments, debt reduction, and returning capital to shareholders through dividends, which are subject to board approval[99]. - The North Star program aims for a $100 million run-rate improvement in free cash flow and an $80 million run-rate improvement in adjusted EBITDA by 2026[128]. - Restructuring and integration expenses incurred through September 30, 2025, totaled approximately $110 million, with an additional $5 million expected in Q4 2025[128]. Tax and Interest - Interest expense increased by 2.1% in Q3 2025 and 2.0% in the first nine months, primarily due to higher interest rates despite a reduction in average debt outstanding[115]. - The effective income tax rate decreased to 28.5% in Q3 2025 from 33.6% in Q3 2024, benefiting from lower tax impacts from foreign operations[117]. Asset Performance - The company recorded a 100% reduction in asset impairment charges in Q3 2025 compared to $6,700,000 in Q3 2024, indicating improved asset performance[113].

Company Overview - PLAYSTUDIOS, Inc. has developed a portfolio of free-to-play social casino games, including Tetris® and acquired Brainium in late 2022[127]. Revenue Generation - Revenue is primarily generated from in-game virtual currency sales, with a significant concentration in North America[130]. - The company incurs platform fees of approximately 30% for in-game purchases processed by third-party platforms like Apple App Store and Google Play Store[133]. - Virtual currency revenue for playGAMES decreased by $11.4 million, or 19.9%, to $46.1 million during the three months ended September 30, 2025, compared to $57.6 million in the same period of 2024[148]. - The net revenue for playAWARDS remained flat at $264,000 during the three months ended September 30, 2025, compared to $3,000 in the same period of 2024[152]. - Revenue for the three months ended September 30, 2025, was $57.6 million, a decrease from $71.2 million in the same period of 2024, representing a decline of approximately 19.1%[182]. User Engagement Metrics - Daily Active Users (DAU) and Monthly Active Users (MAU) are key metrics for measuring player engagement, with DAU defined as the number of individuals playing a game on a particular day[136][137]. - Daily Paying Users (DPU) is tracked to understand the size of the active player base making in-game purchases, with DPU defined as the number of individuals making a purchase in a game on a particular day[138]. - Average Daily Active Users (DAU) for playGAMES decreased by 750, or 25.3%, to 2,211 in the three months ended September 30, 2025, compared to 2,961 in the same period of 2024[148]. - Average Monthly Active Users (MAU) for playGAMES decreased by 3,153, or 24.9%, to 9,505 in the three months ended September 30, 2025, compared to 12,658 in the same period of 2024[148]. - Average Daily Revenue Per DAU (ARPDAU) is calculated to measure overall monetization, defined as game and advertising revenue divided by Average DAU[141]. Financial Performance - Net loss for the three months ended September 30, 2025, increased by $6.0 million, or 194.4%, to $9.1 million compared to $3.1 million in the same period of 2024[146]. - The operating loss for the three months ended September 30, 2025, increased by $3.1 million, or 64.6%, to $7.9 million compared to $4.8 million in the same period of 2024[146]. - Consolidated AEBITDA decreased by $7.4 million to $7.2 million for the three months ended September 30, 2025, representing a 50.5% decline compared to the same period in 2024[172]. - playGAMES AEBITDA decreased by $9.8 million to $13.4 million for the three months ended September 30, 2025, with a margin of 23.3% compared to 32.6% in 2024[174]. - Net loss for the three months ended September 30, 2025, was $(9.1) million, compared to a net loss of $(3.1) million in the same period of 2024, indicating a worsening loss margin from (4.3)% to (15.8)%[182]. Operating Expenses - Operating expenses for the three months ended September 30, 2025, decreased by $10.5 million, or 13.8%, to $65.5 million compared to $76.0 million in the same period of 2024[155]. - Total operating expenses for the nine months ended September 30, 2025, decreased by $38.3 million, or 16.5%, to $193.8 million compared to $232.1 million in the same period of 2024[156]. - Selling and marketing expenses decreased by $0.9 million to $14.2 million for the three months ended September 30, 2025, primarily due to a $0.7 million decrease in user acquisition expenses[159]. - Research and development expenses decreased by $1.8 million to $14.8 million for the three months ended September 30, 2025, mainly due to a $1.1 million reduction in employee costs[161]. - General and administrative expenses increased by $0.5 million to $12.1 million for the three months ended September 30, 2025, primarily due to a charitable donation of $1.3 million[163]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2025, totaled $106.3 million, with restricted cash of $0.6 million[184]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $22.6 million, down from $34.1 million in 2024, reflecting a decrease of approximately 33.8%[188]. - Net cash used in investing activities during the nine months ended September 30, 2025, was $(12.7) million, a reduction from $(22.1) million in 2024, indicating a decrease of approximately 42.3%[190]. - Net cash used in financing activities for the nine months ended September 30, 2025, was $(14.5) million, significantly lower than $(38.6) million in 2024, a reduction of approximately 62.4%[191]. - As of September 30, 2025, there were no outstanding amounts under the Credit Agreement, indicating a strong liquidity position[187]. Future Outlook - The company plans to continue making significant investments to support business growth and may require additional funds for new game development and acquisitions[186]. - The decrease in cash provided from operating activities was primarily due to a decrease in net revenue, offset by reduced costs and favorable changes in operating assets and liabilities[189].

Exhibit 99.1 Dogwood Therapeutics Reports Third Quarter 2025 Financial Results - Enrollment to date of 100 patients, with 80 patients completing treatment in the ongoing Halneuron® Phase 2b trial, prespecified interim analysis remains on track for Q4 2025 release - - Secured exclusive worldwide, royalty free license to develop and commercialize SP16 as a synergistic and complementary pipeline treatment for cancer-related pain in an all-stock transaction - ATLANTA, Ga., November 6, 2025 -- Dogwood Therapeuti ...

Exhibit 99.1 Dogwood Therapeutics Reports Third Quarter 2025 Financial Results - Enrollment to date of 100 patients, with 80 patients completing treatment in the ongoing Halneuron® Phase 2b trial, prespecified interim analysis remains on track for Q4 2025 release - - Secured exclusive worldwide, royalty free license to develop and commercialize SP16 as a synergistic and complementary pipeline treatment for cancer-related pain in an all-stock transaction - ATLANTA, Ga., November 6, 2025 -- Dogwood Therapeuti ...