Financial Performance - Total revenue for Q3 2025 increased by 7% to $3.997 billion compared to $3.721 billion in Q3 2024, with organic revenue growth also at 7%[6] - Operating income rose by 31% to $816 million, and adjusted operating income increased by 15% to $1.051 billion compared to the prior year period[25] - Diluted EPS increased by 34% to $2.11, while adjusted EPS rose by 12% to $3.05 compared to the prior year period[5] - Aon reported a 12% increase in total revenue for the nine months ended September 30, 2025, reaching $12,881 million compared to $11,551 million for the same period in 2024[38] - Net income attributable to Aon shareholders for Q3 2025 was $458 million, up 34% from $343 million in Q3 2024[38] - Operating income for the nine months ended September 30, 2025, was $3,136 million, up from $2,744 million in 2024, reflecting an operating margin of 24.3%[39] - Free cash flow for the three months ended September 30, 2025, was $1,079 million, a 13% increase from $951 million in 2024[47] - For the nine months ended September 30, 2025, total consolidated revenue was $12,881 million, up 11.5% from $11,551 million in 2024[48] - Net income for the nine months ended September 30, 2025, was $2.046 billion, compared to $1.986 billion for the same period in 2024, reflecting an increase of 3.0%[56] Cash Flow and Assets - Cash provided by operations for the first nine months of 2025 increased by 14% to $2.1 billion, and free cash flow also increased by 13% to $1.9 billion[11][12] - Cash provided by operating activities rose to $2.084 billion for the nine months ended September 30, 2025, compared to $1.835 billion in 2024, marking a growth of 13.6%[56] - Cash and cash equivalents at the end of the period were $1.095 billion, slightly down from $1.103 billion at the end of the previous year[56] - Total current assets increased to $26.569 billion as of September 30, 2025, from $23.432 billion at December 31, 2024, an increase of 13.1%[55] - Funds held on behalf of clients increased to $8.391 billion as of September 30, 2025, from $7.940 billion at December 31, 2024, a growth of 5.7%[56] Expenses and Liabilities - Total operating expenses increased by 3% to $3.181 billion, primarily due to expenses associated with organic revenue growth[7] - Total operating expenses for the nine months ended September 30, 2025, were $9,745 million, an increase from $8,807 million in 2024[39] - Compensation and benefits expenses for the three months ended September 30, 2025, were $2,259 million, compared to $2,150 million in 2024[39] - Total liabilities rose to $43.438 billion as of September 30, 2025, compared to $42.535 billion at December 31, 2024, an increase of 2.1%[55] Shareholder Returns and Repurchases - The company repurchased 0.7 million class A ordinary shares for approximately $250 million in Q3 2025, with $1.6 billion remaining under its share repurchase program[10] - The company executed share repurchases totaling $750 million during the nine months ended September 30, 2025, compared to $800 million in the same period of 2024[56] Strategic Initiatives - Aon remains confident in achieving its full-year 2025 financial targets and is well positioned for sustainable growth in 2026 and beyond[4] - The company is executing its Aon United strategy through the 3x3 Plan, focusing on high-growth areas and scaling data analytics[4] - Aon is focused on integrating the NFP acquisition and expects to realize anticipated revenue and growth synergies over time[33] Tax and Integration Costs - The effective tax rate for Q3 2025 was 21.3%, compared to 20.9% in the prior year period[9] - The effective tax rate for adjusted items was 19.2% for the three months ended September 30, 2025, compared to 18.0% in 2024[51] - The company incurred $10 million in integration costs related to the NFP transaction for the three months ended September 30, 2025[50] Other Financial Metrics - The Accelerating Aon United Program expenses decreased by 54% to $32 million in Q3 2025 from $69 million in Q3 2024[38] - Interest expense for the three months ended September 30, 2025, was $206 million, a slight decrease of 3% from $213 million in 2024[51] - The company reported a decrease in accumulated deficit to $(1.527) billion as of September 30, 2025, from $(2.309) billion at December 31, 2024, indicating an improvement in financial health[55] - Total assets increased to $51.637 billion as of September 30, 2025, up from $48.965 billion at December 31, 2024, representing a growth of 3.4%[55]

Financial Performance - Net loss attributable to common stockholders for Q3 2025 was $13.7 million, or $0.14 per share, compared to a net loss of $7.1 million, or $0.07 per share in Q3 2024, representing a 93.7% increase in loss [5][8]. - Adjusted EBITDAre for Q3 2025 was $42.2 million, a decrease of 4.6% compared to Q3 2024 [5][8]. - Total revenues for the three months ended September 30, 2025, were $236.4 million, a slight decrease of 0.2% compared to $236.8 million in the same period of 2024 [38]. - Operating income for the nine months ended September 30, 2025, was $80.8 million, up 23.5% from $65.4 million in the same period of 2024 [38]. - Net income attributable to common stockholders for the nine months ended September 30, 2025, was $57.0 million, compared to $16.8 million in the same period of 2024 [40]. - The company reported a net loss of $(14.5) million for Q3 2025, compared to a net loss of $(7.4) million in Q3 2024 [40]. - Comprehensive income attributable to the company for the nine months ended September 30, 2025, was $56.3 million, compared to $15.0 million in the same period of 2024 [40]. - EBITDA for the nine months ended September 30, 2025, was $225.306 million, an increase from $169.993 million in 2024, representing a growth of approximately 32.5% [58]. - FFO attributable to common stock and unit holders for the nine months ended September 30, 2025, was $119.073 million, compared to $111.396 million in 2024, reflecting an increase of approximately 6.9% [66]. Revenue and Occupancy Metrics - Same-Property RevPAR for Q3 2025 was flat at $164.50, while Same-Property Total RevPAR increased by 3.7% to $289.76 compared to Q3 2024 [5][8]. - Same-Property occupancy for Q3 2025 was 66.3%, a decrease of 100 bps compared to 67.3% in Q3 2024 [79]. - Same-Property average daily rate (ADR) increased by 1.6% to $248.09 in Q3 2025 from $244.24 in Q3 2024 [79]. - Total Same-Property revenues for Q3 2025 were $236,405, representing a 3.8% increase from $227,812 in Q3 2024 [80]. - Same-Property Hotel EBITDA for Q3 2025 was $46,956, a slight increase of 0.7% from $46,617 in Q3 2024 [79]. - For the nine months ended September 30, 2025, the same-property portfolio occupancy was 69.4%, up from 68.6% in the same period of 2024 [93]. - The ADR for the nine-month period increased to $264.90, compared to $258.59, marking a 4.9% increase year-over-year [93]. - RevPAR for the nine-month period improved to $183.84, up from $177.31, reflecting a 4.3% increase [93]. Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, were $19.9 million, including investments in the renovation of Grand Hyatt Scottsdale Resort [16][18]. - The company anticipates approximately $9 million in capital expenditures for modifying existing food and beverage venues, with completion expected by Q2 2026 [21]. - Capital expenditures for 2025 are projected to be between $87.5 million and $92.5 million, reflecting a variance of $12.5 million to $7.5 million from prior guidance [24]. Debt and Financial Position - Total outstanding debt as of September 30, 2025, was approximately $1.4 billion with a weighted-average interest rate of 5.63% [12]. - Total debt as of September 30, 2025, was $1.423 billion, with a weighted-average interest rate of 5.63% [75]. - Cash and cash equivalents increased to $188.2 million as of September 30, 2025, compared to $78.2 million at the end of 2024 [36]. - The company has a total of $325 million in corporate credit facilities, with a variable interest rate of 6.05% [75]. Guidance and Future Expectations - The company expects a Same-Property RevPAR increase of 4% and Adjusted EBITDAre of $254 million for the full year 2025 [6]. - The updated full year 2025 guidance includes a net income range of $59 million to $67 million, with Same-Property RevPAR change projected at 3.50% to 4.50% [24]. - Adjusted EBITDAre is expected to be between $250 million and $258 million for 2025, with Adjusted FFO ranging from $167 million to $175 million [24]. - The company expects general and administrative expenses of approximately $24 million and interest expenses of about $81 million for 2025, with no changes from prior guidance [28]. - The company emphasizes that forward-looking statements are based on management's assumptions and are subject to various risks and uncertainties [29]. Operational Developments - The company completed significant infrastructure upgrades at ten hotels, with most work expected to be completed in Q4 2025 or early 2026 [18]. - Agreements were made with José Andrés Group to operate food & beverage outlets at W Nashville, aiming to drive incremental revenues [20]. - The company operates a Same-Property portfolio of 30 hotels with a total of 8,868 rooms as of September 30, 2025 [84].

Financial Performance - OneMain reported pretax income of $263 million and net income of $199 million for Q3 2025, compared to $207 million and $157 million in the prior year quarter, respectively[1]. - Earnings per diluted share increased to $1.67 in Q3 2025 from $1.31 in the prior year quarter[1]. - Total revenue for Q3 2025 was $1.6 billion, up 9% from $1.5 billion in the prior year quarter[8]. - For Q3 2025, OneMain Holdings reported net income of $199 million, an increase from $167 million in Q2 2025, reflecting a 19.2% quarter-over-quarter growth[26]. - OneMain's diluted EPS for Q3 2025 was $1.67, compared to $1.40 in Q2 2025, reflecting a 19.3% increase[26]. - The company reported a return on assets of 3.0% for Q3 2025, an improvement from 2.5% in Q2 2025[26]. - The company reported a net loss on repurchases and repayments of debt amounting to $39 million for Q3 2025, compared to $20 million in Q2 2025[30]. - OneMain Holdings' total other revenues for Q3 2025 were $200 million, up from $195 million in Q2 2025[32]. Consumer and Insurance Segment - The Consumer and Insurance segment adjusted pretax income was $303 million, up from $202 million in the prior year quarter, with adjusted net income rising to $227 million from $151 million[5]. - The adjusted pretax income (non-GAAP) for the Consumer & Insurance segment was $303 million for Q3 2025, compared to $231 million in Q2 2025, reflecting a 31.1% increase[32]. - The adjusted net income (non-GAAP) for Q3 2025 was $227 million, compared to $173 million in Q2 2025, representing a 31.2% increase[32]. Loan and Receivables Performance - Managed receivables reached $25.9 billion, a 6% increase from $24.3 billion a year earlier[7]. - Consumer loan originations totaled $3.9 billion, reflecting a 5% increase from $3.7 billion in the prior year quarter[8]. - OneMain's net finance receivables reached $24.465 billion as of September 30, 2025, up from $23.870 billion in Q2 2025, representing a 2.5% increase[28]. - The total net finance receivables reached $24,490 million as of September 30, 2025, up from $23,901 million in the previous quarter, indicating a growth of 2.5%[34]. - Average net receivables for Q3 2025 increased to $24,238 million, compared to $23,634 million in Q2 2025, representing a growth of 2.6%[35]. - Origination volume for consumer loans in Q3 2025 was $3,889 million, slightly down from $3,907 million in Q2 2025, indicating stable lending activity[37]. Expenses and Loss Provisions - Operating expenses increased to $427 million, up 8% from $396 million in the prior year quarter, due to receivable growth and strategic investments[11]. - The provision for finance receivable losses was $488 million, down $24 million compared to the prior year period[9]. - The provision for finance receivable losses was $488 million for Q3 2025, slightly down from $511 million in Q2 2025[32]. - Net charge-offs for Q3 2025 were $427 million, a decrease from $445 million in Q2 2025, showing a 4.0% improvement[26]. - Net charge-offs for Q3 2025 totaled $428 million, a decrease from $446 million in Q2 2025, showing a reduction in loan defaults[35]. - Gross charge-offs for consumer loans in Q3 2025 were $480 million, down from $496 million in Q2 2025, indicating a positive trend in loan performance[37]. - Net charge-off ratio for consumer loans in Q3 2025 was 6.67%, a decrease from 7.19% in Q2 2025, reflecting improved loan quality[37]. Shareholder Returns and Equity - The company declared a quarterly dividend of $1.05 per share, a 1% increase from the previous dividend of $1.04[2]. - OneMain repurchased approximately 540 thousand shares for $32 million during the quarter, with a new $1.0 billion share repurchase program approved[3]. - Total shareholders' equity increased to $3.378 billion as of September 30, 2025, from $3.326 billion in Q2 2025, a rise of 1.6%[29]. Asset Management - The company’s total assets reached $26.985 billion as of September 30, 2025, compared to $26.628 billion at the end of Q2 2025, marking a 1.3% increase[28]. - The allowance for finance receivable losses stood at $2.815 billion as of September 30, 2025, up from $2.754 billion in Q2 2025, indicating a 2.2% increase[28]. - The allowance for finance receivable losses stood at $2,818 million, with an allowance ratio of 11.51% as of September 30, 2025[34]. - The company maintained undrawn conduit facilities of $5.999 billion as of September 30, 2025, unchanged from Q2 2025[29]. Future Outlook - Total revenue for the fiscal year 2024 is projected to be higher than the previous year, driven by strategic market expansions and new product offerings[35].

Financial Performance - Net sales for Q3 2025 were $1.8 billion, a decline of 7.2% year-over-year, with core sales down 7.4%[4] - Gross margin decreased to 34.1% from 34.9% in the prior year, with normalized gross margin at 34.5% compared to 35.4%[5][6] - Operating income improved to $119 million, compared to an operating loss of $121 million in the prior year, with an operating margin of 6.6%[7] - Net income was $21 million, a significant recovery from a net loss of $198 million in the prior year, with normalized net income at $70 million[9] - Diluted EPS was $0.05, compared to a diluted loss per share of $0.48 in the prior year, with normalized diluted EPS at $0.17[9] - The updated outlook for full year 2025 estimates net sales decline of 5.0% to 4.5% and normalized EPS of $0.56 to $0.60[17] - For the three months ended September 30, 2025, normalized diluted earnings per share increased to $0.17 compared to $0.16 in the same period of 2024, reflecting a growth of 6.3%[46] Cash Flow and Debt - Year-to-date operating cash flow was $103 million, down from $346 million in the prior year, affected by working capital use and cash tariff costs[11] - At the end of Q3 2025, total debt was $4.8 billion, down from $5.0 billion in the prior year, with cash and cash equivalents at $229 million[12] - Cash and cash equivalents at the end of Q3 2025 were $269 million, down from $521 million at the end of Q3 2024[35] - The company reported a net cash provided by operating activities of $103 million for the nine months ended September 30, 2025, compared to $346 million for the same period in 2024[35] - Net debt as of September 30, 2025, is $4,548 million, an increase from $4,397 million in the previous year[65] Segment Performance - The Home & Commercial Solutions segment reported net sales of $942 million, a decline of 9.8%, while the Learning & Development segment generated $681 million, down 5.6%[13][14] - The Home and Commercial Solutions segment reported a net sales decline of 10.0% for the three months ended September 30, 2025, compared to the same period in 2024[51] - The Learning and Development segment experienced a normalized operating margin of 21.3% for the nine months ended September 30, 2025, compared to 22.5% in the same period of 2024[48] Cost and Expenses - The company expects an incremental cash tariff cost of approximately $180 million for full year 2025, impacting gross profit by about $115 million[16] - Selling, general and administrative expenses for the three months ended September 30, 2025, are reported at $492 million, a decrease from $536 million in 2024[68] - The company incurred restructuring-related costs of $43 million for the three months ended September 30, 2025, primarily related to severance and employee termination costs[40] - The company incurred restructuring-related costs of $25 million for the three months ended September 30, 2025[65] Assets and Liabilities - Total assets increased to $11,287 million as of September 30, 2025, up from $11,004 million at the end of 2024[33] - Total liabilities rose to $8,590 million as of September 30, 2025, compared to $8,253 million at the end of 2024[33] Market Conditions - The company continues to face inflationary pressures and soft global demand, impacting financial performance and requiring greater use of estimates in financial statements[27] - The company is focused on executing its Realignment Plan to optimize costs and improve productivity amid challenging macroeconomic conditions[29] Normalized Metrics - Normalized gross profit for the three months ended September 30, 2025, was $625 million, or 34.5% of net sales, compared to $690 million and 35.4% in 2024[40] - Normalized operating income for the three months ended September 30, 2025, was $162 million, down from $306 million in the same period of 2024, representing a decline of 47.5%[48] - Normalized EBITDA for the three months ended September 30, 2025, was $225 million, a decrease of 10.0% from $250 million in the same period of 2024[58] - Normalized net income for the trailing twelve months ended September 30, 2025, is $234 million, compared to $286 million for the same period in 2024[65] - Total normalized adjustments, net of tax, for the trailing twelve months ended September 30, 2025, amount to $258 million[65]

Revenue Performance - Revenues for Q3 2025 were $77.5 million, an increase of $4.9 million or 6.7% compared to Q3 2024, driven primarily by $12.5 million in revenue from acquisitions[8] - Year-to-date revenues reached $330.7 million, an increase of $38.7 million or 13.3% versus the prior year period, primarily due to revenue from acquisitions of $40.9 million[14] - Revenues for Q3 2025 were $77.5 million, compared to $72.6 million in Q3 2024, representing a year-over-year increase of 12.5%[34] - Total revenues for the three months ended September 30, 2025, reached $77.5 million, an increase from $72.6 million in the same period of 2024, driven by a 8.2% increase in Connections revenue[41] - For the nine months ended September 30, 2025, total revenues were $330.7 million, a 13.3% increase from $292.0 million in 2024[37] Organic Revenue - Organic Revenues for Q3 2025 were $64.0 million, a decrease of $4.7 million or 6.8% from $68.7 million in Q3 2024[5] - Organic revenues for the three months ended September 30, 2025, decreased by 6.8% to $64.0 million compared to $68.7 million in the prior year[37] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $12.8 million, a 2.4% increase from $12.5 million in Q3 2024[9] - Year-to-date Adjusted EBITDA was $90.8 million, compared to $68.6 million in the prior year period, reflecting a 32.4% increase[14] - Adjusted EBITDA for the nine months ended September 30, 2025, was $38.2 million, compared to $26.0 million for the same period in 2024[34] - Adjusted EBITDA for the three months ended September 30, 2025, was $12.8 million, slightly up from $12.5 million in the prior year[39] - Adjusted EBITDA for the nine months ended September 30, 2025, was $90.8 million, significantly higher than $68.6 million in the prior year[39] Net Loss - Net loss for Q3 2025 was $14.4 million, compared to a net loss of $11.1 million in Q3 2024, primarily due to higher non-recurring expenses[8] - Year-to-date net loss was $0.5 million, an improvement from a net loss of $2.9 million in the prior year period[14] - The net loss attributable to Emerald Holding, Inc. for Q3 2025 was $14.4 million, compared to a net loss of $11.1 million in Q3 2024[34] - For the three months ended September 30, 2025, Emerald Holding reported a net loss of $14.4 million, compared to a net loss of $11.1 million for the same period in 2024[39] - Basic loss per share for Q3 2025 was $(0.07), compared to $(0.05) in Q3 2024[34] Share Repurchase and Dividends - The Board of Directors approved a share repurchase program allowing for the repurchase of up to $25.0 million of common stock through December 31, 2026[5] - A dividend of $0.015 per share was declared for the quarter ending December 31, 2025[17] - Emerald's share repurchase program was extended to allow for the repurchase of $25.0 million of common stock through December 31, 2026[18] - In Q3 2025, Emerald repurchased 116,094 shares for $0.5 million at an average price of $4.87 per share, totaling 3,776,218 shares for $16.2 million year-to-date[18][19] - The company has repurchased a total of 17.0 million shares for an aggregate of $70.0 million since the restart of the share repurchase program in 2021[19] Cash Flow - Year-to-date 2025 Free Cash Flow excluding event cancellation insurance proceeds was $24.2 million, up from $17.6 million in the prior year[24] - Year-to-date Free Cash Flow reflects an impact of approximately $30.0 million in incremental cash flows from operations due to acquisition timing effects[24] - Free cash flow for the three months ended September 30, 2025, was $(0.4) million, down from $6.7 million in the same period of 2024[40] Assets and Liabilities - Total assets increased to $1,217.3 million as of September 30, 2025, up from $1,048.7 million as of December 31, 2024[36] - Total liabilities rose to $847.8 million as of September 30, 2025, compared to $662.8 million at the end of 2024[36] - Stockholders' equity decreased to $369.5 million as of September 30, 2025, down from $385.9 million as of December 31, 2024[36] - The company reported a net accumulated deficit of $650.6 million as of September 30, 2025, compared to $650.1 million at the end of 2024[36] - Deferred revenues increased to $229.0 million as of September 30, 2025, up from $190.5 million as of December 31, 2024[36] Segment Performance - Revenues from the Connections segment for the three months ended September 30, 2025, were $67.5 million, an 8.2% increase from $62.4 million in 2024[38] - The Commerce segment reported revenues of $5.5 million for the three months ended September 30, 2025, slightly up from $5.3 million in the same period of 2024[38] Expenses - The company incurred $10.1 million in interest expense for the three months ended September 30, 2025, consistent with the previous year[41] - General corporate expenses for the three months ended September 30, 2025, were $12.5 million, a slight decrease from $12.7 million in the same period of 2024[41] - Capital expenditures for the three months ended September 30, 2025, were $2.2 million, slightly lower than $2.4 million in the same period of 2024[40] - The company reported intangible asset impairment charges of $6.3 million for the three months ended September 30, 2024, which were not present in the current period[39]

Financial Performance - Chevron reported earnings of $3.5 billion ($1.82 per share - diluted) for Q3 2025, down from $4.5 billion ($2.48 per share - diluted) in Q3 2024[3]. - Adjusted earnings for Q3 2025 were $3.6 billion ($1.85 per share - diluted), compared to $4.5 billion ($2.51 per share - diluted) in Q3 2024[3]. - Net income attributable to Chevron Corporation for Q3 2025 was $3.539 billion, down 21.1% from $4.487 billion in Q3 2024[33]. - Net income for the three months ended September 30, 2025, was $3.6 billion, down from $4.5 billion in the same period of 2024, reflecting a 20% decline[38]. - Adjusted earnings for the three months ended September 30, 2025, were $3,627 million, compared to $4,531 million in the prior year, reflecting a decline of approximately 20%[40]. - For the nine months ended September 30, 2025, net income attributable to Chevron Corporation was $9,529 million, down from $14,422 million in the same period of 2024[40]. - Total adjusted earnings for the nine months ended September 30, 2025, were $10,493 million, compared to $14,624 million in the previous year, reflecting a decrease of approximately 28%[40]. Production and Operations - Record production of 4.1 million BOE per day in Q3 2025, a 21% increase from the previous year[6]. - Cash flow from operations was $9.4 billion in Q3 2025, with adjusted free cash flow of $7.0 billion, reflecting a more than 50% increase year-over-year[6]. - Upstream net income for Q3 2025 was $3.302 billion, a decrease of 28.0% from $4.589 billion in Q3 2024[34]. - Downstream net income for Q3 2025 was $1.137 billion, an increase from $0.595 billion in Q3 2024[34]. - Operating expenses for Q3 2025 were $9.128 billion, an increase of 15.0% from $7.935 billion in Q3 2024[33]. Shareholder Returns - The company returned $6 billion to shareholders in Q3 2025, including $2.6 billion in share repurchases and $3.4 billion in dividends[12]. Capital Expenditures and Investments - Capital expenditures (Capex) in Q3 2025 were $4.4 billion, higher than the previous year due to spending on legacy Hess assets[12]. - Total capital expenditures for the nine months ended September 30, 2025, were $12.1 billion, consistent with the $12.1 billion spent in the same period of 2024[38]. - Chevron Corporation acquired businesses for $1.1 billion during the three months ended September 30, 2025[38]. Debt and Financial Ratios - The debt ratio at the end of Q3 2025 was 18.0%, up from 14.2% a year earlier[8]. - Total debt rose to $41.5 billion in September 2025, compared to $24.5 billion in December 2024, marking a 69% increase[36]. - The debt ratio increased to 18.0% in September 2025 from 13.9% in December 2024, showing a rise in leverage[36]. - The net debt ratio indicates the company's leverage, calculated as total debt less cash and cash equivalents as a percentage of total debt plus stockholders' equity[29]. Future Outlook - The company anticipates future growth opportunities despite risks related to crude oil prices, production curtailments, and geopolitical factors[31]. - Chevron's structural cost reductions are expected to be sustainable compared to 2024 levels, focusing on operational efficiencies and divestments[25]. Currency and Special Items - Special items for the three months ended September 30, 2025, resulted in a total impact of $(359) million, affecting net income significantly[40]. - The total foreign currency effects for the three months ended September 30, 2025, were $147 million, compared to $(44) million in the prior year, indicating a notable change in currency impact[40].

Financial Performance - Record quarterly revenue of $135.4 million, a 7.8% increase year-over-year from $125.6 million in Q3 2024[6] - Net income was $7.2 million, or $0.30 per diluted share, compared to $7.2 million, or $0.29 per diluted share, in Q3 2024[6] - Non-GAAP net income was $11.4 million, or $0.47 per diluted share, compared to $11.8 million, or $0.47 per diluted share, in Q3 2024[6] - Revenue for the three months ended September 30, 2025, was $135,366, an increase of 7.0% compared to $125,619 in the same period of 2024[28] - Total revenue for the three months ended September 30, 2025, was $135,366,000, representing a 7.8% increase from $125,619,000 in the same period of 2024[34] - Total revenue for the nine months ended September 30, 2025, was $396,634,000, a 4.6% increase from $379,140,000 in 2024[36] Revenue Breakdown - Revenue fulfilled through digital factories was $105.3 million, a 4.9% increase year-over-year[6] - Revenue fulfilled through the Protolabs Network was $30.1 million, a 19.1% increase year-over-year[6] - Revenue from the United States for the three months ended September 30, 2025, was $109,361,000, a 9.8% increase compared to $99,571,000 in 2024[34] - Revenue from CNC Machining for the three months ended September 30, 2025, was $63,043,000, an 18.2% increase from $53,327,000 in 2024[36] - Revenue from Injection Molding for the nine months ended September 30, 2025, was $143,908,000, a decrease of 3.1% from $148,574,000 in 2024[36] Profitability Metrics - Adjusted EBITDA was $21.1 million, or 15.6% of revenue[7] - Non-GAAP gross margin for the three months ended September 30, 2025, was 45.9%, slightly down from 46.2% in the same period of 2024[28] - Non-GAAP operating margin for the three months ended September 30, 2025, was 10.0%, compared to 10.9% in the same period of 2024[30] - GAAP operating margin for the three months ended September 30, 2025, was 6.5%, down from 6.8% in the same period of 2024[30] - Adjusted EBITDA for the nine months ended September 30, 2025, was $58,210, down from $61,429 in 2024, indicating a decrease of about 5.7%[32] Cash Flow and Investments - The company generated $29.1 million in cash from operations, with a cash and investments balance of $138.4 million as of September 30, 2025[7] - Cash and cash equivalents at the end of the period increased to $104,422 from $87,873, marking a rise of approximately 19.7%[24] - The company reported a net cash provided by operating activities of $58,053 for the nine months ended September 30, 2025, compared to $60,535 in 2024, a decrease of about 4.1%[24] - Total cash used in financing activities for the nine months ended September 30, 2025, was $35,887, a decrease from $46,004 in 2024, reflecting a reduction of approximately 22.0%[24] Future Outlook - The company expects fourth quarter 2025 revenue between $125.0 million and $133.0 million[5] - The company expects GAAP diluted net income per share for Q4 2025 to be between $0.12 and $0.20[42] - Non-GAAP diluted net income per share for Q4 2025 is projected to be between $0.30 and $0.38[42] Customer Engagement - Revenue per customer contact increased 14.1% year-over-year to $6,370, with 21,252 customer contacts served during the quarter[7] - Revenue per customer contact for the three months ended September 30, 2025, was $6,370, an increase from $5,580 in 2024[40] - Customer contacts for the three months ended September 30, 2025, were 21,252, down from 22,511 in 2024[40] Overall Strategy - The company is focused on accelerating profitable growth and positioning for long-term shareholder value creation[3] - Net income for the nine months ended September 30, 2025, was $15,242, down from $16,997 in the same period of 2024, representing a decrease of approximately 10.3%[24] - Non-GAAP net income for the nine months ended September 30, 2025, was $29,451, compared to $31,766 in 2024, reflecting a decrease of about 7.3%[25]

Financial Performance - Net revenues for Q3 2025 reached $263,417,000, a 5.4% increase from $249,329,000 in Q3 2024[19] - Operating income for the nine months ended September 30, 2025, was $158,966,000, up 8.1% from $147,130,000 in the same period of 2024[19] - Net income for the nine months ended September 30, 2025, was $83,006,000, representing a 36.0% increase compared to $61,070,000 in 2024[19] - For the nine months ended September 30, 2025, net revenues increased to $790.5 million, up 6.3% from $743.6 million in the same period of 2024[39] - Net income for the nine months ended September 30, 2025, was $27.0 million, compared to $16.6 million for the same period in 2024, representing a 62.7% increase[39] - Net income for the three months ended September 30, 2025, was $27,411 million, compared to $22,342 million for the same period in 2024, representing a 22.5% increase[40] - Basic earnings per share for Q3 2025 were $0.08, compared to $0.07 in Q3 2024[19] - Basic earnings per share increased to $0.08 for the three months ended September 30, 2025, from $0.07 in 2024, while diluted earnings per share also rose to $0.08 from $0.07[40] - The net income margin for the three months ended September 30, 2025, was 10.4%, up from 9.0% in the same period of 2024[130] - Adjusted EBITDA for the three months ended September 30, 2025, was $86,792 thousand, compared to $78,804 thousand in 2024, reflecting a margin of 32.9%[130] Cash Flow and Liquidity - Cash flows from operating activities for the nine months ended September 30, 2025, totaled $225,733,000, an increase from $198,840,000 in 2024[21] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $225.7 million, supported by net income of $83.0 million and non-cash adjustments[154] - The company believes existing sources of liquidity and capital will be sufficient to finance growth strategy and operations for at least the next 12 months[153] - Free cash flow for the nine months ended September 30, 2025, was $47.1 million, with growth capital expenditures of $154.9 million[162] - The company experienced a decrease in cash provided by operating activities due to changes in working capital balances, which decreased cash by $6.8 million[155] Assets and Liabilities - Total assets as of September 30, 2025, were $3,142,930,000, compared to $3,101,796,000 at the end of 2024[24] - Total liabilities decreased to $2,037,773,000 as of September 30, 2025, from $2,103,444,000 at the end of 2024[24] - Cash and cash equivalents at the end of the period were $35,652,000, down from $67,463,000 at the beginning of the period[24] - Total long-term debt as of September 30, 2025, was $827,231 million, a decrease from $909,094 million as of December 31, 2024[60] - The company’s total stockholders' equity as of September 30, 2025, was $1,105.2 million, up from $998.4 million as of December 31, 2024[39] Operational Highlights - The company operated 527 car washes across 21 states as of September 30, 2025, reflecting continued market expansion[29] - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[19] - The number of Unlimited Wash Club (UWC) Members reached 2,227 thousand as of September 30, 2025, up from 2,110 thousand in 2024, representing a growth of approximately 5%[124] - UWC sales accounted for 77% of total wash sales for the three months ended September 30, 2025, compared to 74% for the same period in 2024[125] - Comparable store sales growth for the three months ended September 30, 2025, was 3.1%, compared to 2.9% for the same period in 2024[119] Expenses and Costs - Cost of labor and chemicals for the three months ended September 30, 2025, was $76.6 million, representing 29% of net revenues, a slight decrease from 30% in 2024[138] - Other store operating expenses increased to $109.5 million for the three months ended September 30, 2025, accounting for 42% of net revenues, compared to 41% in 2024[140] - General and administrative expenses decreased to $22.7 million for the three months ended September 30, 2025, representing 9% of net revenues, down from 10% in 2024[142] - Total other expense, net, for the three months ended September 30, 2025, was $14.1 million, a 32% decrease from $20.7 million in 2024, primarily due to lower interest expenses[146] - Income tax provision for the three months ended September 30, 2025, was $10.4 million, a 58% increase from $6.6 million in 2024, driven by higher pre-tax income[148] Investments and Growth Strategy - The company plans to continue its growth strategy through greenfield development, focusing on Express Exterior Locations[115] - The company has increased its location count by 5 greenfield locations in the three months ended September 30, 2025[120] - The company acquired the assets of five express car wash locations in Lubbock, Texas on October 20, 2025[109] - The company entered into 11 forward-starting leases related to build-to-suit arrangements for car wash locations, commencing between 2025 and 2028[83] Debt and Financing - In March 2024, the company amended its Credit Agreement, providing $925,000 in first lien term commitments, including $901,201 to refinance outstanding term loans and $23,799 in additional incremental term commitments[64] - The company increased its borrowing capacity under the Revolving Commitment from $150,000 to $300,000 as part of Amendment No. 5[66] - As of September 30, 2025, the available borrowing capacity under the Revolving Commitment was $299,926, with an unused commitment fee of 0.20%[67][68] - The company was in compliance with all covenants related to its long-term debt as of September 30, 2025[71] Miscellaneous - The company has maintained effective disclosure controls and procedures as of September 30, 2025[167] - There were no material changes in risk factors or legal proceedings during the reporting period[171][170]

Table of Contents 0 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 Commission file number: 000-33063 SIERRA BANCORP (Exact name of Registrant as specified in its charter) California 33-0937517 (State of Incorporation) (IRS Employer Identification No) 86 North Main Street, Porterville, California 93257 (Address of principal executive off ...

Financial Performance and Risks - The Company reported a decline in the fair value of its investment portfolio by $2,416 million due to a hypothetical 100 basis points increase in interest rates as of September 27, 2025[185]. - The annual interest expense on the Company's term debt is expected to increase by $129 million with a hypothetical 100 basis points rise in interest rates[185]. - The Company is exposed to economic risks from interest rates and foreign exchange rates, which may impact its consolidated financial statements[183]. - The Company is primarily exposed to foreign exchange rate risk as a net receiver of currencies other than the U.S. dollar[186]. - A strengthening U.S. dollar negatively impacts the Company's net sales and gross margins expressed in U.S. dollars[186]. - The Company estimates a maximum one-day loss in fair value of $590 million with 95% confidence as of September 27, 2025[187]. - The estimated maximum one-day loss in fair value was $538 million as of September 28, 2024[187]. - The Company uses a value-at-risk (VAR) model with Monte Carlo simulation to assess the impact of exchange rate fluctuations on foreign currency derivative positions[187]. - Changes in the Company's underlying foreign currency exposures generally offset changes in the fair values of its foreign currency derivatives[187]. Business Operations and Strategy - The Company manages its business primarily on a geographic basis, with net sales through direct and indirect distribution channels accounting for 40% and 60% of total net sales, respectively[26]. - As of September 27, 2025, the Company employed approximately 166,000 full-time equivalent employees, emphasizing its commitment to attracting and retaining talent[37]. - The Company continues to invest in research and development to enhance existing products and services, as well as to expand its offerings through new technologies[32]. - The Company faces significant competition in the smartphone, personal computer, tablet, and wearables markets, with a minority market share in these segments[29]. - The Company has a diverse product line, including iPhone, Mac, iPad, wearables, and services, which are crucial for maintaining its competitive edge[19][20][22]. - The Company has experienced higher net sales in its first fiscal quarter due to seasonal holiday demand, impacting overall financial performance[36]. - The Company holds a broad collection of intellectual property rights, which it believes is essential for differentiating its business[33].