UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: For the quarterly period ended October 31, 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 001-40854 NUTRIBAND INC. (Exact name of registrant as specified i ...

Operating Expenses - Total operating expenses for the three months ended October 31, 2025, were approximately $4,555,000, an increase of $2,413,000 compared to $2,142,000 for the same period in 2024[124] - For the six months ended October 31, 2025, total operating expenses were approximately $8,193,000, up from $4,735,000 in 2024, reflecting an increase of $3,458,000[125] Net Loss - The company reported a net loss of approximately $4,483,000 for the three months ended October 31, 2025, compared to a net loss of $2,103,000 for the same period in 2024[129] - For the six months ended October 31, 2025, the net loss was approximately $6,560,000, slightly higher than the $6,428,000 loss reported in 2024[132] Current Assets and Liabilities - As of October 31, 2025, the company had current assets of $9,834,961, an increase of $939,563 from $8,895,398 as of April 30, 2025[130] - Current liabilities increased to $1,670,308 as of October 31, 2025, compared to $879,953 as of April 30, 2025, reflecting an increase of $790,355[130] - The company had working capital of $8,164,653 as of October 31, 2025, an increase of $149,208 from $8,015,445 as of April 30, 2025[130] Cash Flow - Net cash used in operating activities for the six months ended October 31, 2025, totaled approximately $7,110,000, an increase from $4,012,000 in 2024[134] - The company reported net cash provided by financing activities of approximately $8,898,000 for the six months ended October 31, 2025, primarily from warrant exercises[136] Project Development - The company plans to use Glencore Technology's Jameson Cell Flotation Equipment for enhanced gold and copper recovery at the CK Gold Project[122]

Financial Position - As of October 31, 2025, HP's cash and cash equivalents were $3.69 billion, a decrease from $3.74 billion in 2024[222] - Total debt as of October 31, 2025, was $9.67 billion, with short-term debt at $0.85 billion and long-term debt at $8.82 billion[232] - The weighted-average interest rate on HP's debt increased slightly to 4.6% in 2025 from 4.5% in 2024[232] - As of October 31, 2025, total contractual obligations amount to $14.97 billion, with $2.24 billion due in the short term and $12.73 billion in the long term[241] - Principal payments on debt total $9.69 billion, with $831 million due in the short term and $8.86 billion in the long term[241] - Interest payments on debt are projected at $2.78 billion, with $406 million due in the short term and $2.37 billion in the long term[241] - Purchase obligations are estimated at $1.09 billion, with $509 million due in the short term and $576 million in the long term[241] - Operating lease obligations total $1.39 billion, with $474 million due in the short term and $913 million in the long term[241] Cash Flow - Net cash provided by operating activities for fiscal year 2025 was $3.70 billion, down from $3.75 billion in 2024[222] - Net cash used in investing activities increased to $1.18 billion in 2025, primarily due to higher investments in property and equipment[229] - The cash conversion cycle improved to (38) days in 2025 from (42) days in 2024, driven by changes in accounts receivable and inventory management[224] Shareholder Returns - HP returned $1.9 billion to shareholders in fiscal year 2025, including $1.1 billion in cash dividends and $0.8 billion in share repurchases[231] - The company has approximately $8.4 billion remaining under share repurchase authorizations as of October 31, 2025[231] Liquidity and Financing - HP's liquidity is supported by a $5.0 billion sustainability-linked revolving credit facility maturing in 2029[236] - Third-party short-term financing arrangements are in place to support working capital requirements for certain customers[247] Future Obligations and Plans - The company expects to contribute approximately $43 million to non-U.S. pension plans and $31 million to U.S. non-qualified pension plan participants in fiscal year 2026[242] - Future cash payments related to approved restructuring plans are expected to be around $0.2 billion in fiscal year 2026[243] - Recorded liabilities for uncertain tax positions amount to approximately $797 million, including related interest and penalties[244] - The company has not engaged in off-balance sheet arrangements that would create material relationships with unconsolidated entities[246] Strategic Initiatives - HP's Fiscal 2023 Plan aims to drive growth through investments in product mix and structural cost savings[12]

Financial Performance - Net sales for the three months ended November 1, 2025, were $85,126, an increase of $4,964 or 6.2% compared to $80,162 for the same period in 2024[164] - Gross profit for the three months ended November 1, 2025, was $41,907, up 4.6% from $40,058 in the prior year, with a gross margin of 49.2% compared to 50.0%[165] - Selling, general and administrative (SG&A) expenses increased by $2,175 or 6.3% to $36,472, maintaining a consistent percentage of sales at 42.8%[165] - Net income for the three months ended November 1, 2025, was $2,726, down from $4,349 in the same period last year, with diluted earnings per share at $0.21 compared to $0.34[163] - For the nine months ended November 1, 2025, total net sales were $216,300, an increase of $2,798, or 1.3%, compared to $213,502 for the same period in 2024[178] - Gross profit for the nine months ended November 1, 2025, increased by 2.8% to $108,008, with a gross margin of 49.9%, up from 49.2% in the prior year[179] - SG&A expenses decreased by $4,381, or 4.4%, to $95,860 for the nine months ended November 1, 2025, representing 44.3% of sales compared to 47.0% in the prior year[180] Segment Performance - Vince Wholesale segment net sales increased by $3,250 or 6.7% to $52,015, driven primarily by increased shipments[173] - Income from operations for the Vince Wholesale segment rose by $211 or 1.2% to $18,434, despite increased SG&A expenses and a decrease in gross margin due to tariffs[174] - Vince Direct-to-consumer segment net sales increased by $1,714, or 5.5%, to $33,111 for the three months ended November 1, 2025, compared to $31,397 for the same period in 2024[176] - Income from operations for the Vince Direct-to-consumer segment rose to $1,177 for the three months ended November 1, 2025, up from $614 in the same period in 2024, driven by increased net sales[177] - Net sales from the Vince Wholesale segment increased by $861, or 0.7%, to $127,067 for the nine months ended November 1, 2025, primarily due to increased shipments of off-price products[188] - Income from operations for the Vince Direct-to-consumer segment improved to $588 for the nine months ended November 1, 2025, compared to a loss of $848 in the same period in 2024[191] Expenses and Financing - Interest expense decreased by $718 or 42.5% to $973 due to lower levels of debt under the Third Lien credit facility[166] - Interest expense decreased by $2,306, or 46.3%, to $2,678 for the nine months ended November 1, 2025, primarily due to lower debt levels[181] - Net cash used in operating activities was $12,681 for the nine months ended November 1, 2025, compared to $633 for the same period in 2024, driven by cash outflows in working capital[195][196] - Net cash provided by financing activities was $17,310 for the nine months ended November 1, 2025, compared to $3,087 for the same period in 2024, indicating a significant increase of 460%[198][199] Capital and Debt Management - Capital expenditures for the nine months ended November 1, 2025, were $4,165, up from $2,725 in the same period in 2024, primarily related to retail store buildouts[197] - The company had $47,255 available under the 2023 Revolving Credit Facility as of November 1, 2025, with $27,563 in borrowings and $6,191 in letters of credit outstanding[210] - The weighted average interest rate for borrowings under the 2023 Revolving Credit Facility was 6.6% as of November 1, 2025[210] - The 2023 Revolving Credit Facility has a total capacity of $85,000, with a letter of credit sublimit of $10,000, and matures on June 23, 2028[202] - Following the P180 Acquisition, the outstanding principal amount of the Third Lien Credit Facility was reduced by approximately $27,000, leaving $7,500 remaining outstanding[219] - The company recorded a gain upon extinguishment of the Third Lien Credit Facility amounting to $11,575, which was recognized as a capital contribution within equity[220] - The company is in compliance with all applicable covenants as of November 1, 2025[210] Company Structure and Operations - The company operates 46 full-price retail stores and 14 outlet stores, with a focus on the Vince brand following the sale of the Rebecca Taylor and Parker brands[153] - The company has identified two reportable segments: Vince Wholesale and Vince Direct-to-consumer, with unallocated corporate expenses related to the Vince brand[158] Taxation and Compliance - The provision for income taxes for the three months ended November 1, 2025, was $2,002, compared to $0 in the prior year, reflecting a shift from losses to taxable income[168] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk information[224] Industry Context - The apparel and fashion industry is cyclical, affecting revenues based on economic conditions and seasonal trends[221] - Management's discussion and analysis relies on condensed consolidated financial statements based on critical accounting policies[222] - As of November 1, 2025, there have been no material changes to the critical accounting estimates[223]

Revenue Performance - Product revenue for Q3 FY2026 was $534.8 million, an 18% increase from $454.7 million in Q3 FY2025[172] - Subscription services revenue for Q3 FY2026 was $429.7 million, a 14% increase from $376.3 million in Q3 FY2025[172] - Total revenue for Q3 FY2026 reached $964.5 million, a 16% increase from $831.1 million in Q3 FY2025[172] - Subscription Annualized Recurring Revenue (ARR) at the end of Q3 FY2026 was $1.84 billion, reflecting a 17% year-over-year growth[178] - Total remaining performance obligations (RPO) at the end of Q3 FY2026 were $2.9 billion, indicating a 24% year-over-year growth[179] - Revenue in the United States grew 22% in Q3 FY2026, from $561.9 million to $683.2 million[175] - Revenue from the rest of the world grew 4% in Q3 FY2026, from $269.2 million to $281.3 million[175] Product Development and Expenses - The introduction of new products at Pure//Accelerate included the general availability of Pure Storage Cloud Azure Native and FlashArray//X R5[157] - The company expects research and development expenses to increase in absolute dollars to support product development and operational scale[165] - Sales and marketing expenses are anticipated to rise as the company invests in capturing growth opportunities, particularly in the enterprise market[166] - Total product cost of revenue decreased by $2,964 thousand (2%) in Q3 2026 compared to Q3 2025, while total subscription services cost of revenue increased by $21,890 thousand (23%) in the same period[182] - Product gross margin improved to 72% in Q3 2026 from 66% in Q3 2025, driven by royalties from hyperscaler shipments and a favorable product mix[182] - Research and development expenses increased by $56,278 thousand (28%) in Q3 2026 compared to Q3 2025, primarily due to higher employee compensation and related costs[186] - Sales and marketing expenses rose by $37,987 thousand (15%) in Q3 2026 compared to Q3 2025, mainly due to increased employee compensation and travel costs[188] - General and administrative expenses increased by $25,959 thousand (39%) in Q3 2026 compared to Q3 2025, driven by higher employee compensation and related costs[192] Financial Position and Cash Flow - Cash, cash equivalents, and marketable securities totaled $1.5 billion at the end of Q3 2026, sufficient to fund operating and capital needs for at least the next 12 months[197] - A $500 million revolving credit facility was established in June 2025, replacing a prior $300 million facility, with proceeds available for general corporate purposes[199] - The company may pursue acquisitions or investments in complementary businesses and technologies to support growth opportunities[198] - U.S. Dollar denominated borrowings under the Credit Facility bear interest at a base rate with a margin ranging from 0% to 0.50% or the term SOFR rate with a margin from 0.875% to 1.50%[200] - As of the end of Q3 fiscal 2026, there were no outstanding borrowings, and the company was in compliance with all covenants under the Credit Facility, maintaining a Consolidated Net Leverage Ratio of 3.5:1[201] - Outstanding letters of credit increased from $7.2 million at the end of fiscal 2025 to $13.5 million at the end of Q3 fiscal 2026[202] - The company repurchased approximately 0.6 million shares at an average price of $87.23 per share for a total of $53.3 million during Q3 fiscal 2026, and 3.9 million shares for $215.4 million in the first three quarters of fiscal 2026[203] - Net cash provided by operating activities increased from $545.1 million in the first three quarters of fiscal 2025 to $612.1 million in fiscal 2026, driven by higher net income and stock-based compensation[205] - Capital expenditures in the first three quarters of fiscal 2026 amounted to $197.8 million, supporting the Evergreen//One offering and data center expansion[208] - Net cash used in financing activities during the first three quarters of fiscal 2026 was $449.966 million, primarily due to share repurchases and tax withholding remittances[210] - The company had cash, cash equivalents, and marketable securities totaling $1.5 billion at the end of Q3 fiscal 2026, with a potential $7.0 million decrease in fair value due to a hypothetical 1.00% increase in interest rates[219][220] Foreign Currency and Other Income - Adverse changes in foreign currency exchange rates of 10% could have resulted in an approximate $8.8 million impact on income before income taxes at the end of Q3 fiscal 2026[222] - Other income increased by $38,461 thousand in the first three quarters of fiscal 2026 compared to the same period in fiscal 2025, primarily due to gains from the sale of equity securities[195]

Financial Performance - Net sales for Q3 2025 were $235.2 million, a decrease of 10.9% compared to $263.8 million in Q3 2024[19] - Gross profit for Q3 2025 was $82.2 million, down 13.6% from $95.2 million in the same period last year[19] - The company reported a net loss of $6.4 million for Q3 2025, compared to a net loss of $1.2 million in Q3 2024[19] - The company’s operating income for Q3 2025 was $205, significantly lower than $7.2 million in Q3 2024[19] - Net income for the nine months ended November 1, 2025, was $5,940,000[21] - Net income for the nine months ended November 2, 2024, was $19,306,000, compared to $1,081,000 for the same period in 2025[24] - The net loss for the three months ended November 1, 2025, was $6.426 million, compared to a net loss of $1.194 million for the same period in 2024[123] Assets and Liabilities - Total current assets decreased to $188.7 million as of November 1, 2025, from $226.2 million as of February 1, 2025[17] - Total liabilities amounted to $609.5 million, down from $679.5 million at the end of the previous reporting period[17] - The accumulated deficit increased to $330.2 million from $331.3 million, indicating ongoing financial challenges[17] - Total stockholders' deficit as of November 1, 2025, was $(206,515,000)[21] - Total stockholders' deficit as of November 2, 2024, was $(189,286,000), reflecting an increase from $(211,717,000) at February 3, 2024[22] Inventory and Expenses - Inventory levels decreased to $128.8 million from $148.5 million, reflecting a reduction of 13.2%[17] - Selling, general and administrative expenses were $66.3 million, a decrease of 11.6% compared to $74.9 million in Q3 2024[19] - Selling, general and administrative expenses for the three months ended November 1, 2025, were $66.256 million, representing 28.2% of net sales[123] - Selling, general and administrative expenses for the nine months ended November 1, 2025, decreased by $21.4 million, or 9.4%, to $206.8 million, representing 27.1% of net sales, down from 27.5%[139] Cash Flow - Cash provided by operating activities was $65,366,000 for the nine months ended November 2, 2024, compared to a cash used of $7,122,000 for the same period in 2025[24] - Net cash used in operating activities during the nine months ended November 1, 2025, was $7.1 million, a significant decrease from $65.4 million provided during the same period in 2024[156] - Net cash used in investing activities was $5.4 million for the nine months ended November 1, 2025, down from $12.6 million in the prior year, primarily due to fewer new store openings and remodels[158] Sales Performance - Apparel sales accounted for $213.6 million in the three months ended November 1, 2025, down from $230.8 million in the prior year, representing a decline of 7.5%[49] - Non-apparel sales decreased significantly to $12.3 million from $24.9 million, a decline of 50.5% year-over-year[49] - For the nine months ended November 1, 2025, total net sales were $763.9 million, down 7.8% from $828.2 million in the same period of 2024[49] - Comparable sales decreased by 8% for the three months ended November 1, 2025, compared to the same period in the previous year[100] Stock and Shareholder Information - Common shares outstanding increased to 99,197,000 as of November 1, 2025[21] - The company repurchased common stock totaling $(20,285,000) including excise tax[21] - The company entered into a stock repurchase agreement on June 23, 2025, agreeing to purchase $20.0 million of shares at a price of $3.32 per share, repurchasing 6,030,908 shares[64] Legal and Compliance - The company has been named as a defendant in six pending class action lawsuits related to data security, with no determination on the probability of loss at this time[81] - Management concluded that disclosure controls and procedures were effective as of November 1, 2025, ensuring timely and accurate reporting[164] Marketing and Future Plans - The company plans to close approximately 100 additional stores by the end of fiscal year 2025, following the closure of 74 stores through the end of the third quarter of fiscal year 2025[98] - The company plans to continue investing in brand awareness and customer engagement through targeted marketing efforts[112] - The company anticipates growth in operating expenses due to increased spending on advertising and hiring additional personnel[114]

Financial Performance - Net income for the thirteen weeks ended November 1, 2025, was $9,205,000, compared to $12,348,000 for the same period in 2024, representing a decrease of approximately 25.5%[126] - Adjusted EBITDA for the thirty-nine weeks ended November 1, 2025, was $77,174,000, down from $92,642,000 in the same period in 2024, indicating a decline of about 16.7%[126] - Net sales for the thirteen weeks ended November 1, 2025, were $150,528,000, slightly lower than $151,260,000 for the same period in 2024, reflecting a decrease of approximately 0.5%[126] - Adjusted EBITDA margin for the thirteen weeks ended November 1, 2025, was 16.1%, down from 17.7% in the same period in 2024, showing a decline of 1.6 percentage points[126] - Operating income for the thirteen weeks ended November 1, 2025 was $14.9 million, a decrease of $4.3 million, or 22.4%, from $19.2 million in 2024[128] - Net income for the thirteen weeks ended November 1, 2025 was $9.2 million, down $3.1 million, or 25.5%, from $12.3 million in 2024[128] - For the thirty-nine weeks ended November 1, 2025, net sales decreased by $9.9 million, or 2.1%, to $458.1 million from $468.0 million in 2024[140] - Gross profit for the thirty-nine weeks ended November 1, 2025 decreased by $12.7 million, or 3.8%, to $322.4 million, with a gross margin of 70.4% compared to 71.6% in 2024[142] Expenses and Costs - Selling, general and administrative (SG&A) expenses increased by $3.2 million, or 3.6%, to $91.8 million, representing 61.0% of net sales compared to 58.6% in 2024[132][134] - SG&A expenses for the thirty-nine weeks ended November 1, 2025 increased by $7.4 million, or 2.8%, to $271.5 million, representing 59.3% of net sales compared to 56.4% in 2024[143][144] - Gross profit for the thirteen weeks ended November 1, 2025 decreased by $1.3 million, or 1.2%, to $106.7 million, with a gross margin of 70.9% compared to 71.4% in 2024[131] - Interest expense for the thirty-nine weeks ended November 1, 2025 was $8.2 million, a decrease of $4.8 million, or 36.8%, from $13.0 million in 2024[147] Cash Flow and Financing - Net cash provided by operating activities decreased by $13.2 million to $43.7 million for the thirty-nine weeks ended November 1, 2025, compared to $56.9 million for the same period in 2024[158][160] - Net cash used in investing activities was $8.8 million for the thirty-nine weeks ended November 1, 2025, down from $10.0 million in the prior year[161] - Net cash used in financing activities significantly decreased to $12.4 million for the thirty-nine weeks ended November 1, 2025, from $70.3 million in the same period of 2024[162] - The Company had outstanding letters of credit amounting to $4.3 million and a maximum additional borrowing capacity of $35.7 million as of November 1, 2025[156] - As of November 1, 2025, the company had $58.0 million in cash and $35.7 million of total availability under its ABL Facility[150] - The Company approved a share repurchase program authorizing the repurchase of up to $25.0 million of common stock over two years[151] - As of November 1, 2025, the Company had a remaining Term Loan Facility principal balance of $74.3 million, due on May 8, 2028[155] - The Company made voluntary prepayments of $58.2 million and $27.2 million on the Term Loan Credit Agreement in May and June 2024, respectively[154] Strategic Initiatives and Market Conditions - The ongoing implementation of strategic initiatives, including upgrades to the ecommerce platform and information systems, is expected to impact future operating results positively[110] - The company faces challenges from overall economic trends, including inflationary pressures and reduced consumer confidence, which may affect sales[107] - The retail industry remains highly competitive, with the company needing to effectively anticipate fashion trends to maintain customer appeal[109] - Changes in U.S. trade policy and tariffs may increase merchandise costs, potentially impacting gross margins in future quarters[113] - The migration of single-channel customers to omnichannel customers is significant, as omnichannel customers spend three times more on average[115] Compliance and Insurance - The Company transitioned to a self-insured group health insurance program in January 2025, with costs accrued based on known claims and estimated incurred but not reported claims[166] - The Company is in compliance with all covenants contained in its outstanding debt arrangements as of November 1, 2025[156]

Financial Performance - Fourth quarter sales were $752 million, a 1% increase from $744 million in the prior year[1] - Net income for the fourth quarter was $152 million, or $2.69 per diluted share, compared to $122 million, or $2.12 per diluted share in the prior year[2] - Adjusted earnings per diluted share increased by 9% to $3.03 from $2.78 in the prior year[2] - Full year sales reached a record $2.8 billion, a 4% increase compared to the previous year[9] - Full year adjusted earnings per diluted share were $10.24, a 5% increase from $9.73 in the prior year[10] - EBITDA for the fourth quarter was $256 million, representing 34% of sales, up from $241 million or 32% of sales in the prior year[3] - Net income for the twelve months ended October 31, 2025, was $484,474, an increase of 3.5% compared to $467,284 for the same period in 2024[26] - Total sales for the twelve months ended October 31, 2025, reached $2,791,687, representing a 3.8% increase from $2,689,921 in 2024[28] - The company reported a diluted earnings per share of $8.51 for the twelve months ended October 31, 2025, compared to $8.11 in 2024, marking a 4.9% increase[32] Segment Performance - The Industrial Precision Solutions segment saw a 2% decrease in sales to $362 million, while Medical and Fluid Solutions increased by 10% to $220 million[5][6] - The Medical and fluid solutions segment saw a sales increase of 20.1% for the twelve months ended October 31, 2025, reaching $835,385 compared to $695,452 in 2024[28] - The company experienced a total sales decline of 1.1% in the three months ended October 31, 2025, compared to the same period in 2024[28] Cash Flow and Investments - The company achieved a free cash flow conversion rate of 136% of net income, totaling $661 million for the full year[11] - Cash flows from operating activities for the twelve months ended October 31, 2025, were $719,175, up from $556,193 in 2024, indicating a 29.2% increase[26] - Year-to-date net cash provided by operating activities increased to $719,175,000 compared to $516,264,000 in the previous year[34] - Year-to-date free cash flow reached $661,115,000, up from $467,262,000 year-over-year[34] - Quarter-to-date free cash flow was reported at $193,853,000[34] - Net cash used in investing activities for the twelve months ended October 31, 2025, was $(26,690), significantly improved from $(844,398) in 2024[26] - Additions to property, plant, and equipment year-to-date totaled $58,060,000, compared to $49,002,000 in the previous year[34] Future Outlook - The company expects fiscal 2026 sales to range between $2,830 million and $2,950 million, with adjusted earnings forecasted between $10.80 and $11.50 per diluted share[14] - The backlog for fiscal 2026 is approximately $600 million, a 5% increase from the prior year[13] Balance Sheet Highlights - Total current assets decreased to $1,242,851 as of October 31, 2025, down from $1,275,032 in 2024, reflecting a decline of 2.5%[24] - Long-term debt decreased to $1,681,254 as of October 31, 2025, down from $2,101,197 in 2024, a reduction of 20%[24] - Total shareholders' equity increased to $3,043,571 as of October 31, 2025, compared to $2,932,192 in 2024, reflecting a growth of 3.8%[24] Non-GAAP Measures - The company emphasizes the importance of non-GAAP measures for evaluating ongoing operations and future forecasts[34] - Management believes non-GAAP measures are useful for investors to assess changes in the company's core business over time[34]

Retail Segment Performance - Retail segment net sales accounted for approximately 85.2% of consolidated net sales for the nine months ended October 31, 2025, down from 87.9% for the comparable period in fiscal 2025 [88]. - Urban Outfitters' North American Retail segment net sales accounted for approximately 15.3% of total Retail segment net sales for the nine months ended October 31, 2025, compared to approximately 16.5% for the comparable period in fiscal 2025 [91]. - The Free People brand's North American Retail segment net sales accounted for approximately 24.0% of total Retail segment net sales for the nine months ended October 31, 2025, compared to approximately 23.7% for the comparable period in fiscal 2025 [90]. - Anthropologie's North American Retail segment net sales accounted for approximately 47.0% of total Retail segment net sales for the nine months ended October 31, 2025, compared to approximately 47.1% for the comparable period in fiscal 2025 [89]. - Retail segment comparable net sales increased by 12.5% at Urban Outfitters, 7.6% at Anthropologie, and 4.1% at Free People during the third quarter of fiscal 2026 [106]. Store Expansion and Closure - The company plans to open 69 new stores and close 17 stores, resulting in a total of 785 company-owned stores by January 31, 2026 [97]. - The company plans to open approximately 69 new retail locations during fiscal 2026 and anticipates capital expenditures of about $300 million, primarily financed by cash flow from operating activities [130]. Financial Performance - Net sales for the third quarter of fiscal 2026 were $1.53 billion, an increase of $167.5 million from $1.36 billion in the third quarter of fiscal 2025 [105]. - Net sales for the nine months ended October 31, 2025, were $4.36 billion, a $449.1 million increase from $3.91 billion in the comparable period of fiscal 2025 [115]. - Gross profit for the third quarter of fiscal 2026 increased to $563.3 million, with a gross profit percentage of 36.8%, up from 36.5% in the third quarter of fiscal 2025 [108]. - Income from operations was $144.3 million, or 9.4% of net sales, for the third quarter of fiscal 2026, consistent with the same percentage in the prior year [111]. Inventory and Working Capital - Total inventory at October 31, 2025, increased by $46.5 million, or 5.9%, to $839.8 million compared to the previous year [109]. - Working capital increased to $592.9 million as of October 31, 2025, compared to $417.1 million as of January 31, 2025, and $511.8 million as of October 31, 2024, primarily due to an increase in inventory and cash [124]. - The increase in working capital as of October 31, 2025, compared to October 31, 2024, was mainly due to higher cash and inventory levels [124]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended October 31, 2025, was $312.2 million, up from $182.4 million for the same period in 2024, driven by higher net income and lower inventory increase [126]. - Cash paid for property and equipment in the first nine months of fiscal 2026 was $191.4 million, compared to $144.1 million in fiscal 2025, primarily for expanding the store base and distribution network [127]. - The company aims to invest in new products, markets, and brands, as well as enhance digital capabilities and omni-channel marketing to support sales growth [130]. - The company expects new store investments to generate positive cash flow within a year and may pursue acquisitions or joint ventures to expand brand offerings [130]. Subscription and Wholesale Segments - Subscription segment net sales accounted for approximately 9.3% of consolidated net sales for the nine months ended October 31, 2025, up from 6.8% in the comparable period in fiscal 2025 [98]. - Subscription segment net sales increased by 48.7% in the third quarter of fiscal 2026, driven by a 42.2% increase in the average number of active subscribers [107]. - Wholesale segment net sales represented approximately 5.5% of consolidated net sales for the nine months ended October 31, 2025, compared to 5.3% for the comparable period in fiscal 2025 [99]. Risk Management and Regulatory Impact - The company is actively evaluating global trade policies to mitigate risks associated with tariffs, which could negatively impact financial results [83]. - The company does not expect a material impact from the One Big Beautiful Bill Act on its financial statements for the fiscal year ending January 31, 2026 [84].

Agreements and Contracts - Planet entered into a multi-year $230.0 million commercial agreement with SKY Perfect JSAT to build and operate a constellation of ten Pelican high-resolution satellites, with launches expected to begin in 2027[164]. - A multi-year €240.0 million agreement funded by the German government was established for dedicated image tasking capacity and direct downlink services on Pelican satellites, with payments based on fixed due dates[165]. - Revenue is primarily derived from licensing rights to use imagery delivered digitally, with contracts generally having annual or multi-year terms[183]. Financial Performance - Revenue increased by $20.0 million, or 33%, to $81.3 million for the three months ended October 31, 2025, compared to $61.3 million for the same period in 2024[202][201]. - Revenue for the nine months ended October 31, 2025, increased by $38.1 million, or 21%, to $220.9 million compared to $182.8 million for the same period in 2024[214]. - Net loss for the three months ended October 31, 2025, was $59.2 million, compared to a net loss of $20.1 million for the same period in 2024, representing a 195% increase in losses[201]. - Total operating expenses decreased by $13.7 million, or 7%, to $184.5 million for the nine months ended October 31, 2025[213]. - Interest income increased by $2.0 million, or 83%, to $4.4 million for the three months ended October 31, 2025, driven by higher cash equivalent and short-term investment balances[207]. Customer Metrics - The Net Dollar Retention Rate increased to 109% for the nine months ended October 31, 2025, compared to 104% for the same period in 2024, primarily due to large Defense and Intelligence contract expansions[176]. - Net Dollar Retention Rate including winbacks increased to 110% for the nine months ended October 31, 2025, compared to 105% for the same period in 2024, primarily due to large Defense and Intelligence contract expansions[177]. - EoP Customer Count decreased to 910 as of October 31, 2025, down from 1,015 as of October 31, 2024, attributed to a focus on larger customers[179]. - Percent of Recurring ACV remained stable at 97% for the nine months ended October 31, 2025, consistent with the same period in 2024[181]. Operational Strategy - Planet's business model generates revenue through fixed-price subscriptions and usage-based contracts, providing a large recurring revenue base with low incremental costs[156]. - The company plans to invest in new sensors to capture additional data sets, enhancing its value proposition and expanding its customer base[162]. - Planet aims to scale in existing verticals and expand into new markets, targeting sectors like energy, infrastructure, and finance through enhanced data accessibility[158][159]. - The company is focused on customer retention and expansion by improving data usability and offering new products, which may increase costs in the short term[169]. - Planet's operational strategy includes establishing a platform ecosystem to facilitate user and partner collaboration, potentially accelerating growth[161]. Expenses and Investments - Capital Expenditures as a Percentage of Revenue increased to 34% for the three months ended October 31, 2025, up from 14% in the same period of 2024, and to 26% for the nine months ended October 31, 2025, compared to 20% in 2024[182]. - Cost of revenue is expected to increase as the company invests in delivery organization and satellite launches, anticipating economies of scale with new customer additions[186]. - Research and development expenditures may increase in future periods as the company invests in software platform development and new satellite technologies[189]. - Sales and marketing expenses are expected to rise as the company aims to upsell new product features and expand into new market verticals[191]. - General and administrative expenses are anticipated to increase due to public company compliance and reporting obligations, but the company expects to achieve operating scale over time[194]. Cash Flow and Financing - Net cash provided by operating activities for the nine months ended October 31, 2025, was $113,713,000, compared to a cash used of $8,079,000 for the same period in 2024[247]. - The company issued $460,000,000 in Convertible Senior Notes due 2030, with net proceeds of $445,800,000 after costs[239]. - As of October 31, 2025, the company had $443,300,000 in cash and cash equivalents, and $234,000,000 in short-term investments[242]. - Net cash provided by financing activities for the nine months ended October 31, 2025, included proceeds from the issuance of the 2030 Notes totaling $448.8 million[252]. Market Risks and Accounting Policies - The company has been exposed to market risks including foreign currency exchange risk, interest rate risk, and inflation risk[256]. - The company’s critical accounting policies include revenue recognition and long-lived assets, which are essential for understanding its financial results[254].