Financial Performance - Full-year revenue for 2025 reached a record $427.5 million, representing a 12.6% increase from $379.8 million in 2024[4] - The company reported a net loss of $29.2 million for 2025, significantly improved from a net loss of $195.5 million in 2024; Non-GAAP adjusted net profit was $13.0 million compared to a loss of $84.6 million in 2024[4] - Revenues for the year ended December 31, 2025, increased to $427,516,000, up from $379,801,000 in 2024, representing a growth of approximately 12.5%[28] - The net loss for the year ended December 31, 2025, was $29,218,000, a substantial improvement compared to a net loss of $195,457,000 in 2024[28] - Adjusted net loss for the year ended December 31, 2025, was $12,975 thousand, compared to an adjusted net loss of $84,648 thousand in 2024[37] - EBITDA for 2025 was $2,534 thousand, a recovery from an EBITDA loss of $155,656 thousand in 2024[39] Gross Margin and Profit - Gross margin decreased to 28.6% in 2025 from 31.5% in 2024, primarily due to a $32.5 million inventory impairment charge[5] - Gross profit for the year ended December 31, 2025, was $122,110,000, compared to $119,552,000 in 2024, showing a slight increase of about 2.1%[28] - The gross profit for the three months ended December 31, 2025, was $959,000, a significant decrease from $41,520,000 in the prior year[29] - The company reported a gross margin of 1.0% for Q4 2025, down from 36.6% in Q4 2024[35] Operating Expenses - Operating expenses were reduced by 50.4% to $118.3 million in 2025, down from $238.3 million in 2024[5] - Operating expenses decreased significantly to $118,269,000 in 2025 from $238,300,000 in 2024, a reduction of approximately 50.4%[28] - Cash generated from operating activities was $75,908 thousand in 2025, a significant increase from $2,814 thousand in 2024[31] Cash and Assets - Cash and cash equivalents increased to $169.2 million as of December 31, 2025, compared to $109.6 million at the end of 2024[6] - Total current assets increased to $448,723,000 as of December 31, 2025, compared to $428,026,000 in 2024, marking an increase of approximately 4.0%[27] - The company’s cash and cash equivalents increased to $104,963,000 in 2025 from $73,007,000 in 2024, representing a growth of approximately 43.5%[27] - Total cash, cash equivalents, and restricted cash increased to $169,238 thousand at the end of 2025, up from $109,601 thousand in 2024[34] Capital Expenditures and Future Plans - Capital expenditures for 2025 totaled $38.7 million, primarily for manufacturing capacity expansion, down from $49.9 million in 2024[5] - The company anticipates achieving serial production at the Huzhou Phase 3.2 expansion in 2026, which is expected to increase capacity[11] - Microvast is focusing on expanding its customer base across EMEA, North America, and APAC, targeting high-barrier-to-entry segments[12] Quarterly Performance - For Q4 2025, revenue was $96.4 million, a decrease of 15.0% from $113.4 million in Q4 2024, attributed to regulatory shifts and customer platform delays[10] - For the three months ended December 31, 2025, revenues were $96,399,000, down from $113,387,000 in the same period of 2024, reflecting a decline of about 15%[29] - The company reported a net income of $16,539,000 for the three months ended December 31, 2025, compared to a net loss of $82,323,000 in the same period of 2024[29] Inventory Impairment - The company incurred an impairment loss of $32,507 thousand related to energy storage systems in 2025[35]

Revenue and Financial Performance - Rafael Holdings reported a product revenue of $0.1 million for the three months ended January 31, 2026, and $0.3 million for the six months ended January 31, 2026, compared to $0 for the same periods in 2025, attributed to Cyclo's product revenue post-merger and sales from Rafael Medical Devices [289]. - The Healthcare segment incurred a loss from operations of $6.7 million for the three months ended January 31, 2026, which is an increase of 105% compared to a loss of $3.3 million for the same period in 2025 [288]. - Infusion Technology segment reported a revenue decrease of 100% to $0 for the three months ended January 31, 2026, compared to $51,000 in the same period of 2025 [293]. - Consolidated net loss attributable to Rafael Holdings, Inc. was $6.4 million for the three months ended January 31, 2026, a 38% increase from a net loss of $4.6 million in the same period of 2025 [298]. - Cash used in operating activities was $14.3 million for the six months ended January 31, 2026, significantly impacted by a net loss of $16.1 million [309]. - Total assets decreased by 13% to $99.3 million as of January 31, 2026, compared to $114.1 million as of July 31, 2025 [307]. - Interest income decreased by 30% to $0.7 million for the six months ended January 31, 2026, compared to $1.1 million in the same period of 2025 [299]. Expenses and Costs - Research and development expenses for the Healthcare segment increased to $4.0 million for the three months ended January 31, 2026, primarily due to Cyclo's expenses, compared to a significantly lower amount in the previous year [292]. - General and administrative expenses for the three months ended January 31, 2026, decreased by 7% to $2.2 million, mainly due to reductions in payroll and professional fees, despite the inclusion of Cyclo's expenses [291]. - General and administrative expenses in the Infusion Technology segment decreased by 89% to $29,000 for the six months ended January 31, 2026, compared to $255,000 in the same period of 2025 [293]. Investments and Strategic Initiatives - The company is focusing on completing the development of Trappsol® Cyclo™ and expanding its investment portfolio in therapeutics addressing high unmet medical needs [277]. - LipoMedix, with a 95% ownership interest, is exploring strategic options for its lead candidate, including potential licensing and collaborations [280]. - Rafael Medical Devices raised approximately $925,000 by selling a 31.6% equity interest to third parties in August 2023 [284]. Regulatory and Milestones - The FDA granted substantial equivalence determination for the VECTR System, which is intended for minimally invasive surgeries, marking a significant milestone for Rafael Medical Devices [284]. - The merger with Cyclo was completed on March 25, 2025, making Cyclo a wholly-owned subsidiary of Rafael Holdings [279]. Cash Flow and Financial Position - Cash and cash equivalents decreased by 28% to $37.8 million as of January 31, 2026, down from $52.8 million as of July 31, 2025 [307]. - Cash used in investing activities for the six months ended January 31, 2026 was primarily due to the purchase of investments in Nina Medical for $0.8 million [311]. - Revenue from tenants located in Israel represented 38% of consolidated revenues for the six months ended January 31, 2026, compared to 75% for the same period in 2025 [319]. Accounting and Financial Reporting - The company applies significant accounting policies consistently to report operating results and financial condition in conformity with U.S. GAAP [315]. - The company evaluates critical accounting estimates and assumptions on an ongoing basis, which may involve significant management judgments [316]. - The company does not anticipate paying dividends on common stock until achieving sustainable profitability and retaining certain minimum cash reserves [314]. - The company has no off-balance sheet arrangements that are likely to affect its financial condition or results of operations [317]. - The net amount of exposure to foreign currency exchange rate changes at the end of each reporting period is generally not material [319].

Financial Performance - For the three months ended June 30, 2025, the Company generated total revenues of $768,065, an increase of $267,663 compared to $500,402 for the same period in 2024[165]. - Rental income for the three months ended June 30, 2025, was $750,604, reflecting an increase of $250,202 compared to the prior-year period[165]. - General and administrative expenses decreased to $946,927 for the three months ended June 30, 2025, down from $1,839,724 in the same period of 2024, representing a decrease of $892,797[167]. - The Company reported a loss from operations of $444,234 for the three months ended June 30, 2025, a decrease in loss of $1,049,846 compared to the loss of $1,494,080 in the prior-year period[167]. - Net income for the three months ended June 30, 2025, was $4,702,108, compared to $4,545,277 for the same period in 2024, representing a decrease of $156,831[170]. - For the six months ended June 30, 2025, net cash provided by operating activities was $1,502,272, compared to a net cash used of approximately $83,280 in the same period of 2024[174]. Cash and Liquidity - The Company had cash and cash equivalents of $115,947,978 as of June 30, 2025, compared to $117,521,935 as of December 31, 2024[176]. - On May 1, 2024, the Company completed its Asset Acquisition, resulting in cash proceeds of approximately $200 million[177]. - The Company entered into a Seller Lease Agreement, which results in annual rental revenue of approximately $3 million[178]. - Management has determined that the Company's sources of liquidity will be sufficient to meet its obligations for at least one year from the issuance date of the June 30, 2025 financial statements[179]. Accounting and Valuation - The Company accounts for Preferred Stock as a liability due to the non-substantive conversion feature, with an issue price of $11.50 per share deemed to approximate its fair value at issuance[181][182]. - Business combinations are accounted for under ASC 805, with purchase consideration allocated to identifiable assets and liabilities based on estimated fair values, any excess recorded as goodwill[183]. - Fair value determinations for business combinations involve significant judgment and estimates, particularly for identifiable intangible assets, relying on assumptions regarding forecasted cash flows and growth rates[184]. - Changes in market conditions or revisions to key inputs could materially affect the allocation of purchase consideration and the amount of goodwill recognized[185]. Regulatory and Reporting - As of June 30, 2025, the Company had no off-balance sheet arrangements as defined in Regulation S-K[187]. - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[188].

Financial Performance - Net income for the year ended December 31, 2025, was $57.2 million, an increase of $26.2 million, or 84.6%, compared to the prior year, driven by the acquisition of IFH and strong organic growth [213]. - Net income for the year ended December 31, 2025 was $57.2 million, an 84.6% increase from $31.0 million in 2024, partly due to the IFH acquisition [226]. - Core net income for 2025 was $56,290,000, compared to $40,069,000 in 2024, reflecting a 40.5% increase [342]. - Total revenue for 2025 reached $245,179,000, up from $186,156,000 in 2024, marking a 31.6% increase [342]. - The efficiency ratio improved to 63.25% in 2025 from 67.80% in 2024, indicating better cost management [342]. - The return on average equity increased to 15.13% in 2025 from 10.78% in 2024, showcasing enhanced profitability [342]. Interest Income and Assets - Net interest income rose to $196.0 million, an increase of $41.2 million from the prior year, primarily due to organic growth and the IFH acquisition [213]. - Average interest-earning assets increased by $727.9 million, or 29.3%, to $3.2 billion compared to the same period in 2024 [213]. - Total interest income for the year ended December 31, 2025, was $52.0 million, a decrease of $4.5 million from $47.6 million in 2024, primarily due to decreased interest rates despite growth in loan portfolios [238]. - The commercial bank net interest margin increased to 4.38% in 2025 from 3.93% in 2024, highlighting improved interest income generation [342]. Noninterest Income and Expenses - Noninterest income for the year ended December 31, 2025, was $49.2 million, an increase of $17.8 million, or 56.6%, from the same period in 2024, largely due to the full-year impact of the IFH acquisition [214]. - Noninterest income rose to $49.2 million, a 56.6% increase from $31.4 million, largely due to contributions from the IFH acquisition [227]. - Noninterest expense increased by $28.9 million, or 22.9%, to $155.1 million, mainly due to the IFH acquisition and higher salaries and employee benefits [229]. Credit Losses and Asset Quality - The provision for credit losses was $15.0 million for the year ended December 31, 2025, a decrease of $2.8 million from the prior year [213]. - Provision for credit losses decreased by $2.8 million, or 15.5%, to $15.0 million, primarily due to lower provisions in the commercial loan portfolio [226]. - Nonperforming loans to total portfolio loans rose to 1.84% in 2025 from 1.15% in 2024, indicating a deterioration in asset quality [347]. - The allowance for credit losses to total portfolio loans remained stable at 1.85% for both 2025 and 2024, suggesting consistent risk management practices [344]. Deposits and Liabilities - Deposits increased to $3.1 billion at December 31, 2025, up $331.3 million, or 12.0%, from the previous year [218]. - Total liabilities increased by $352.7 million to $X million as of December 31, 2025, primarily due to a $331.0 million growth in the deposit portfolio [303]. - Total interest-bearing deposits rose to $2.24 billion as of December 31, 2025, compared to $1.95 billion in 2024 [305]. - Uninsured deposits were approximately $1.3 billion, representing 40.9% of the deposit portfolio as of December 31, 2025, compared to $979.3 million, or 35.5%, in 2024 [308]. Equity and Capital - Stockholders' equity increased by $46.6 million for the year ended December 31, 2025, largely due to net income of $57.2 million [320]. - The common equity to total assets ratio was 11.14% at December 31, 2025, compared to 11.07% at December 31, 2024 [322]. - The Company and the Bank were in compliance with all applicable regulatory capital requirements as of December 31, 2025 [327]. - The Tier 1 capital ratio to risk-weighted assets was 13.05% for the Company and 11.34% for the Bank as of December 31, 2025 [329]. Loan Portfolio and Underwriting - Net portfolio loans reached $2.96 billion, an increase of $329.3 million, or 12.5%, from $2.63 billion in 2024 [251]. - The company’s commercial real estate loans increased to $41.4 million in 2025 from $28.6 million in 2024, reflecting a growth of 45.5% [260]. - The company has established underwriting guidelines and routinely monitors delinquency levels to manage nonperforming assets [285]. - The Problem Loan Status Report is reviewed quarterly for borrowers with an overall loan exposure exceeding $250,000 [290]. Interest Rate Risk Management - The bank's asset-sensitive position indicates that rising interest rates are expected to positively impact net interest income, while falling rates would have the opposite effect [360]. - The bank employs quarterly EAR simulations to assess the impact of changing interest rates on earnings under various scenarios [363]. - The Asset/Liability Management Committee (ALCO) regularly reviews the sensitivity of assets and liabilities to interest rate changes [359]. - The bank does not engage in leveraged derivatives or financial options to mitigate interest rate risk, focusing instead on managing its balance sheet [358].

Financial Position and Debt - The company's current short-term funding capacity is $702.5 million, comprising three credit facilities[114]. - As of December 31, 2025, the company had approximately $3,483.4 million of debt outstanding, including $2,986.6 million of securitization trust debt[117]. - Increased interest expenses were experienced in 2023 due to multiple interest rate hikes by the Federal Reserve, impacting financial position and liquidity[134]. - The company’s ability to maintain financing sources is influenced by market conditions and compliance with covenants under financing agreements[116]. - The company may need to increase credit enhancement requirements if economic conditions worsen, impacting cash resources available for operations[127]. - An increase in interest rates could reduce cash flows from excess spread, adversely affecting earnings and cash flows[179]. Securitization and Financing - The company relies on securitization transactions for permanent financing of automobile contracts, having completed 36 securitizations from 2010 to 2019[120]. - The company is dependent on the performance of its portfolio of securitized and warehoused automobile contracts, with higher delinquency and loss ratios potentially reducing cash flows from residual interests[125]. - Receivables originated since January 2018 are recorded at fair value, and actual credit losses exceeding estimates may lead to fair value adjustments[139]. - The company cannot borrow against defaulted automobile contracts under its warehouse credit facilities, potentially reducing cash flows[141]. - Risk retention rules require the company to retain at least 5% of the credit risk of assets collateralizing asset-backed securities, potentially limiting liquidity[151]. Economic and Market Risks - Economic conditions, including unemployment and inflation, could adversely affect the company's ability to collect payments on receivables, impacting financial results[131]. - Defaults on automobile contracts could materially and adversely affect the company's financial condition, cash flows, and liquidity[138]. - Economic downturns could impair operations, particularly due to the focus on sub-prime customers, leading to increased delinquencies and losses[174]. - The company is geographically concentrated in states prone to natural disasters, which could adversely affect collections on automobile contracts[177]. - The company faces restrictions that may limit its ability to obtain additional capital, potentially impacting earnings generation[167]. Competition and Operational Risks - The company faces competition from various finance companies, which may have greater access to capital markets and resources[135]. - The company specializes in purchasing and servicing automobile contracts for sub-prime customers, which entails higher risks of non-performance and delinquencies[137]. - The company faces intense competition for key personnel, and loss of any key employee could adversely affect its operations[143]. - Non-compliance with regulations could result in penalties, litigation losses, and damage to the company's reputation, adversely affecting financial condition[147]. - The company is subject to various litigations that could result in significant financial liabilities and adversely affect its operations[153]. Technology and Accounting Risks - The use of artificial intelligence in operations may expose the company to operational, regulatory, and reputational risks that could impact financial results[165]. - The company has incurred risks related to fair value accounting for receivables acquired since January 1, 2018, which could affect interest income recognition[170]. - If actual results for receivables deviate from estimates, the company may need to reduce recorded values, impacting income and book value[172]. Stock and Dividend Policy - The company's common stock is thinly traded, leading to limited selling opportunities and potential price volatility[180]. - The company has never declared or paid cash dividends on its common stock and intends to retain future earnings[181].

Financial Performance - Q4 2025 revenue was approximately $100,000, a 94% quarterly sequential increase, while full-year 2025 revenue totaled approximately $230,000, up 15% year over year[11] - Revenue for Q4 2025 was $97,000, compared to $46,000 in Q4 2024, representing a 110% increase year-over-year[18] - GAAP net loss for Q4 2025 was $(7.3) million, or $(0.17) per share, and for the full year, it was $(34.0) million, or $(1.47) per share[11] - Net loss for the year 2025 was $(33,958,000), compared to $(35,460,000) in 2024, reflecting an improvement of 4.2%[18] - Non-GAAP net loss for the year ended December 31, 2025, was $24,359,000, compared to $25,780,000 in 2024, indicating a 5.5% reduction in losses[20] - Adjusted EBITDA for 2025 was reported at $(26,229,000), slightly improved from $(27,143,000) in 2024[20] - AEYE, Inc. reported a basic and diluted GAAP net loss per share of $1.47 for 2025, compared to $4.89 in 2024, showing a significant improvement[20] Cash and Assets - AEye ended 2025 with $86.5 million in cash, cash equivalents, and marketable securities, providing operational runway into 2028[11] - Cash and cash equivalents at the end of the period increased to $43,356,000 in 2025 from $10,266,000 in 2024, marking a significant increase[19] - Total current assets as of December 31, 2025, were $89,633,325, compared to $71,171,000 in 2024[17] - Total liabilities as of December 31, 2025, were $95,551,199, compared to $27,120,000 in 2024[17] Customer and Market Growth - AEye's customer count increased by 33%, reaching 16 active customers with revenue-generating shipments[4] - The company has expanded its commercial pipeline by 40% and is actively pursuing opportunities in high-speed rail and smart infrastructure[3] - AEye's technology is positioned in a market estimated at $5 billion today, with potential to reach a trillion-dollar opportunity by 2035[5] Operating Expenses - Total operating expenses for the year 2025 were $31,410,000, down from $35,252,000 in 2024, a reduction of approximately 11%[18] - Research and development expenses for Q4 2025 were $3,716,000, compared to $4,252,000 in Q4 2024, indicating a decrease of 12.6%[18] - Stock-based compensation expenses totaled $5,522,000 for the year ended December 31, 2025, down from $9,047,000 in 2024, reflecting a 39% decrease[20] Financing Activities - The company raised $90,961,000 through the issuance of common stock under Common Stock Purchase Agreements in 2025, a substantial increase from $11,080,000 in 2024[19] - AEYE, Inc. reported a net cash provided by financing activities of $91,665,000 in 2025, a notable increase from $10,060,000 in 2024[19] Technology and Partnerships - AEye's STRATOS™ sensor features a 1.5-kilometer detection range and resolution greater than twice that of its Apollo™ sensor[4] - AEye has joined the NVIDIA Halos AI Systems Inspection Lab to enhance automotive product readiness[4] - The company is formalizing multiple intersection deployments across the U.S. and signed a letter of intent with a regional partner in APAC[4] Shareholder Information - Weighted average common shares outstanding increased to 44,454,223 in Q4 2025 from 9,144,094 in Q4 2024[18]

Revenue and Financial Performance - For the year ended December 31, 2025, total revenue was $727.975 million, a decrease from $729.075 million in 2024, representing a decline of 0.15%[232]. - International Telecom segment revenue increased by $4.4 million, or 1.2%, to $381.9 million from $377.5 million in 2024, driven by a $4.1 million increase in ancillary services revenue[235]. - US Telecom segment revenue decreased by $5.5 million, or 1.6%, to $346.1 million, primarily due to a $4.1 million reduction in Fixed revenues and a $2.7 million decrease in Mobility revenue[238]. - Total revenue decreased by $1.1 million, or 0.2%, to $727.975 million for the year ended December 31, 2025, compared to $729.075 million in 2024[242]. - Mobility revenue decreased by $2.4 million, or 2.2%, to $107.6 million for the year ended December 31, 2025, from $110.0 million in 2024[245]. - Fixed revenue decreased by $4.5 million, or 1.0%, to $453.9 million for the year ended December 31, 2025, from $458.4 million in 2024[248]. - Carrier Services revenue increased by $1.5 million, or 1.1%, to $134.8 million for the year ended December 31, 2025, from $133.3 million in 2024[253]. - Other Communications Services revenue increased by $3.8 million, or 62.3%, to $9.9 million for the year ended December 31, 2025, from $6.1 million in 2024[255]. - Construction revenue increased to $4.8 million for the year ended December 31, 2025, from $3.9 million in 2024, due to an increase in the number of sites completed[257]. Operating Expenses and Income - Total operating expenses for the year ended December 31, 2025 were $699.541 million, compared to $729.870 million in 2024, reflecting a decrease of 4.1%[232]. - Operating income for the International Telecom segment decreased by $8.8 million, or 11.6%, to $67.0 million from $75.8 million in 2024[237]. - US Telecom segment operating loss improved to $1.7 million in 2025 from a loss of $44.4 million in 2024, indicating a significant reduction in losses[240]. - Operating expenses in the US Telecom segment decreased by $48.3 million, or 12.2%, to $347.8 million, largely due to cost-saving initiatives and a reduction in direct service costs[239]. - Selling, general and administrative expenses decreased by $9.4 million, or 4.1%, to $219.5 million for the year ended December 31, 2025, from $228.9 million in 2024[268]. - Depreciation and amortization expenses decreased by $5.3 million, or 3.8%, to $133.0 million in 2025[278]. - Amortization of intangibles from acquisitions decreased by $3.0 million to $4.9 million in 2025[280]. - Transaction-related charges for the year ended December 31, 2025, were $3.6 million, down from $4.8 million in 2024[273]. - Restructuring and reorganization expenses totaled $3.8 million in 2025, compared to $6.2 million in 2024[274][275]. Grants and Funding - The company generated $82 million in construction revenue from the FirstNet Agreement with AT&T, with an expectation of an additional $4 million as sites are completed[215]. - The company is set to receive $25.6 million annually from the Alaska Connect Fund starting January 1, 2025, continuing until December 31, 2028[221]. - The company has been awarded $98.8 million in construction grants pending completion, with $22.4 million disbursed in capital expenditures during the year ended December 31, 2025[223]. - The company has received $239 million in grants under various government programs to deploy broadband connectivity in underserved areas as of December 31, 2025[225]. - The company expects to receive approximately $144.9 million over the next thirteen years through the Enhanced Alternative Connect America Model funding, with annual amounts starting at $9 million[226]. Debt and Liquidity - Total liquidity as of December 31, 2025, was approximately $117.2 million, with $614.4 million of debt outstanding[305]. - As of December 31, 2025, the company had $121.1 million outstanding under the 2023 CoBank Term Loan and $57.6 million under the 2023 CoBank Revolving Loan, with $112.4 million available under the Revolving Loan[326]. - The 2024 Alaska Credit Facility includes a $300 million secured term loan and a $90 million revolving facility, with $300 million outstanding under the term facility as of December 31, 2025[330][331]. - The company capitalized $4.5 million of fees associated with the 2023 CoBank Credit Facility, which are being amortized over the life of the debt[324]. - The 2023 CoBank Credit Agreement requires a maximum Total Net Leverage Ratio of less than or equal to 3.25 to 1.0, measured quarterly[323]. - As of December 31, 2025, there were no outstanding borrowings under the 2025 IDB Revolving Facility or the 2025 IDB Term Loan, and OneGY was in compliance with all financial covenants[359]. - The OneVI Debt Agreement has a total outstanding amount of $60.0 million, with $2.3 million classified as current and $57.7 million as long-term as of December 31, 2025[366]. - The OneVI Net Leverage Ratio was amended to 7.0 to 1.0 through the maturity date of July 1, 2026, and the company was in compliance as of December 31, 2025[367]. - The OneVI Debt Amendment extends the maturity date from July 1, 2026, to July 1, 2035, with interest-only payments required until June 30, 2026[368]. - Future minimum principal repayments for long-term debt are projected at $24.6 million in 2026, escalating to $397.2 million in 2029[384]. Operational Efficiency and Management - The company has completed the integration and alignment of management across its international markets, enhancing operational efficiencies[209]. - The company plans to continue focusing on cost-saving initiatives and operational efficiencies to improve financial performance in the upcoming periods[239]. - The company is in compliance with all financial covenants of the 2023 CoBank Credit Facility as of December 31, 2025[376]. Other Financial Metrics - The company reported a net loss attributable to non-controlling interests of $8.616 million for the year ended December 31, 2025[236]. - The company experienced a $15.5 million gain on the disposition of long-lived assets in 2024, which impacted the operating expenses comparison[236]. - Net loss attributable to stockholders decreased by $11.5 million, or 43.6%, to $(14.906) million for the year ended December 31, 2025, from $(26.429) million in 2024[242]. - Interest income was $0.7 million in 2025, down from $1.2 million in 2024[289]. - Interest expense decreased to $47.8 million in 2025 from $49.5 million in 2024[290]. - Losses on foreign currency transactions were recorded at $2.0 million for 2025 and $1.9 million for 2024, indicating exposure to currency fluctuations[379].

Financial Performance - Net sales for the year ended December 31, 2025, increased by $11.3 million, or 1.9%, to $613.5 million compared to $602.2 million for the year ended December 31, 2024 [216]. - Gross profit increased by $27.7 million, or 11.6%, from $238.5 million in 2024 to $266.2 million in 2025 [216]. - Operating income surged by $67.8 million, or 462.3%, from $14.7 million in 2024 to $82.5 million in 2025 [216]. - Net income improved by $42.4 million, from a loss of $23.2 million in 2024 to a profit of $19.2 million in 2025 [216]. - Cost of goods sold decreased by $16.4 million, or 4.5%, from $363.7 million in 2024 to $347.3 million in 2025 [216]. - Selling, general, and administrative expenses rose by $14.0 million, or 10.6%, from $132.1 million in 2024 to $146.1 million in 2025 [216]. - Interest expense increased by $1.1 million, or 2.3%, from $50.7 million in 2024 to $51.8 million in 2025 [216]. - Research and development costs slightly increased by $0.1 million, or 0.6%, from $18.7 million in 2024 to $18.8 million in 2025 [216]. Market Strategy and Growth - Holley aims to expand into new product categories and markets, such as exterior accessories and mobile electronics, to grow market share [23]. - The company is investing in growth initiatives, but may face challenges in achieving expected results [88]. - Holley plans to continue evaluating opportunities for strategic acquisitions to expand its market presence and product offerings [198]. - The performance automotive aftermarket parts industry has shown consistent growth over the last two decades, providing ample opportunities for market expansion [29]. Distribution and Sales Channels - E-tailers and warehouse distributors accounted for 54% of Holley's sales in 2025, with the top ten distribution partners contributing 42% of total sales [45]. - The company operates a diverse omni-channel distribution strategy, including DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/installer channels [43]. - The company generated approximately $144.9 million in gross sales through its DTC channel in 2025, indicating a focus on increasing direct-to-consumer sales [101]. Employee Engagement and Workplace Culture - The company emphasizes creating a premier workplace to attract and retain talent, which is crucial for driving innovation and product development [26]. - The company has a recruitment strategy that encourages diversity and aims to create an inclusive work environment [59]. - The company has a strong focus on employee engagement, measuring it through periodic culture surveys to enhance the employee experience [60]. - The company matched employee contributions to the 401(k) Plan up to 3.5% each pay period during the 2025 fiscal year [55]. - The company employed 1,407 full-time employees and 76 temporary employees as of December 31, 2025, with approximately 39% based in Bowling Green, KY [53]. Risks and Challenges - The company has faced supply chain disruptions and rising inflation, which could adversely affect manufacturing costs and profitability [73]. - Significant disruptions in manufacturing or distribution could adversely affect business operations and financial results [77]. - The company faces intense competition from both large and small competitors, which may impact market share and sales [79]. - Rising fuel prices and potential shortages could negatively affect the demand for powered vehicle products [81]. - A shift towards electric vehicles and mobility services may impact traditional automotive product sales [83]. - The company is exposed to risks related to the failure to protect customer and employee data, which could lead to regulatory penalties and reputational damage [109]. - Political tensions and natural disasters could disrupt operations and supply chains, impacting overall business performance [98]. - The company faces risks from labor shortages and increased labor costs, which could adversely impact operations and financial performance [103]. - The company is subject to various legal and regulatory compliance risks, which could result in lawsuits, fines, and penalties affecting financial performance [144]. Environmental and Compliance Issues - The company is subject to various environmental regulations, and while it believes it is in substantial compliance, new requirements could lead to material expenditures in the future [50]. - The company may incur significant costs related to environmental liabilities from acquired businesses, which could adversely affect financial condition [130]. - The company is subject to evolving expectations regarding environmental, social, and governance practices, which may impose additional costs or risks [136]. - The company is required to comply with SEC rules under the Sarbanes-Oxley Act, which includes certifying financial information and assessing internal controls [119]. Cybersecurity and Data Protection - The company's cybersecurity program is overseen by the Chief Information Officer, reflecting the strategic importance of information security in supporting operations and long-term objectives [183]. - The Audit Committee of the board of directors oversees the company's enterprise risk management activities, including cybersecurity risk management processes [184]. - The company has not identified any cybersecurity risks that have materially affected its financial position or operations [188]. - Cybersecurity threats and incidents have been experienced, with potential future impacts that could disrupt operations and financial processes [108]. - Compliance with evolving data privacy and cybersecurity laws could divert management resources and increase business costs [151]. Stockholder and Financial Structure - The company has a concentration of stock ownership, with the Holley Stockholder and Sponsor holding approximately 29% of shares, which may limit other stockholders' influence [158]. - The exercise of warrants could lead to dilution of existing stockholders and increase the number of shares available for resale [161]. - Future issuances of debt or equity securities may adversely affect the market price of Common Stock and could be dilutive to existing stockholders [173]. - The company does not intend to pay cash dividends for the foreseeable future, opting to retain future earnings for business development and expansion [174]. - The NYSE may delist the company's securities if it fails to meet continued listing standards, which could lead to significant adverse consequences for stockholders [172].

Financial Overview - The total consideration paid by the Company for the PWRtek Transactions was $107.5 million, which included a $40 million secured promissory note and a warrant to purchase 6,000,000 shares of common stock[22]. - Total revenues for the year ended December 31, 2025, increased by $50.2 million to $237.3 million compared to 2024, driven by higher external and related party product sales and $16.1 million in PWRtek rental revenue[190]. - Gross profit for 2025 was $59.8 million, representing a gross profit margin of 25.2%, up from 21.1% in 2024[190]. - The Company reported a net income of $30.5 million for 2025, with a net income margin of 12.9%, compared to 5.6% in 2024[190]. - The Company incurred $1.0 million in interest and fees related to the ABL in 2025, compared to $0.7 million in 2024[207]. Revenue Sources - Revenue from the Company's three largest customers accounted for 76% and 75% of consolidated revenue for the years ended December 31, 2025 and 2024, respectively, indicating a significant customer concentration risk[97]. - The ProFrac Agreement and Lease Agreement accounted for 62% of total revenues in both 2025 and 2024, with the Lease Agreement contributing 6.8% of total revenues for 2025[87]. - The Chemistry Technologies segment's revenue from external customers increased by $16.4 million, or 26%, to $79.6 million in 2025, attributed to increased sales with both new and existing customers[197]. - Revenue from external customers for the year ended December 31, 2025, increased by $2.8 million, or 35%, to $10,871 million compared to 2024[199]. Expenses and Costs - Selling, general and administrative expenses increased by $3.3 million, or 14%, to $28.0 million in 2025, primarily due to higher salaries, stock compensation, and contract labor costs[192]. - The Company incurred $4.4 million in asset acquisition expenses related to the PWRtek Transactions, primarily for professional services[26]. - The Company incurred $1.8 million in research and development expenses for the year ended December 31, 2025, compared to $1.7 million in 2024, supporting new product development initiatives[189]. - The Company faces various cybersecurity threats and has established a Cybersecurity Incident Response Team to manage potential incidents[162]. Market and Industry Trends - The Company believes that the demand for natural gas will continue to increase over the next 12 to 24 months due to growth in natural gas exportation and its use in electricity generation[63]. - The Company actively markets its products in North America while also targeting emerging international markets, particularly in the Middle East and Latin America[41]. - The demand for the Company's products is sensitive to fluctuations in oil and natural gas prices, which can impact revenue and profitability[139]. Operational Challenges - The Company continues to face supply chain challenges, including fluctuating freight costs and availability of raw materials, which may impact future sales[71]. - The Company has identified multiple supply sources for certain materials in the DA segment to mitigate potential supply chain risks[46]. - The Company may face challenges in managing expansion and integration of acquired businesses, which could negatively impact operating results[117]. - The Company is exposed to fluctuations in raw material prices and availability, which could significantly impact costs and operational efficiency[99]. Regulatory and Compliance Risks - The Company is subject to complex regulations regarding data privacy and cybersecurity, which could impact its business operations[78]. - Changes in U.S. trade policy and tariffs may adversely affect the company's business and results of operations[78]. - The Company faces potential increased costs and liabilities due to compliance with evolving environmental regulations[124]. - Regulatory changes related to hydraulic fracturing could adversely impact the Company's operations and revenue[133]. Strategic Initiatives - The Company aims to enhance customer returns by leveraging chemistry solutions that improve operational efficiency and reduce environmental impact[18]. - The Company is committed to sustainability, aiming to reduce the environmental impact of energy through responsible specialty chemistry solutions[50]. - The Company is focused on driving innovation between the CT and DA segments to enhance efficiencies for exploration and production operators[65]. Financial Position and Future Outlook - The Company expects full-year 2026 revenues from the Lease Agreement to total approximately $27.0 million, compared to $27.5 million in total DA revenues for the year ended December 31, 2025[69]. - The Company anticipates stable demand for its chemistry and data analytics services during 2026, based on current oil and gas price outlooks and customer commitments[62]. - The Company may require additional financing sources to meet capital requirements, particularly if oil and gas market conditions weaken[91]. - The Company has no current plans to pay dividends on its common stock, requiring investors to rely on stock appreciation for returns[157].

Revenue Performance - Company-wide revenue reached $746.2 million, an increase of 28.6% year over year[4] - Casinos & Resorts revenue was $366.2 million, up 12.9% year over year, benefiting from the Queen transaction completed in February 2025[4] - Bally's Intralot B2C revenue grew to $236.5 million, a 13.9% increase year over year, driven by growth in the UK and Spain[4] - North America Interactive revenue surged to $62.3 million, reflecting a 55.4% year over year growth due to iGaming and sports wagering[4] - Total revenue for the year ended December 31, 2025, reached $2,678,563, a slight increase from $2,675,726 in 2024[27] - The North America Interactive segment reported revenue of $215,289 for the year ended December 31, 2025, an increase from $190,090 in 2024, representing an increase of approximately 13%[27] - The total revenue for the Casinos & Resorts segment for the year ended December 31, 2025, was $1,526,575, down from $1,568,588 in 2024, reflecting a decrease of about 3%[27] Segment Performance - Bally's completed the acquisition of Bally's International Interactive business for €2.7 billion, consolidating its financial results[4] - Bally's Intralot B2B segment generated $79.9 million in revenue, significantly up from $6.9 million in the previous year[5] - Bally's Intralot B2C revenue for the year ended December 31, 2025, was $828,261, down from $902,632 in 2024, indicating a decline of about 8%[27] - Bally's Intralot B2B revenue for the year ended December 31, 2025, was $101,074, a significant increase from $6,861 in 2024[27] - The North America Interactive segment recorded positive Segment Adjusted EBITDAR of $0.8 million, a turnaround from a negative $10.2 million in the prior year[16] - The Corporate & Other segment reported an Adjusted EBITDAR loss of $69,172 for the year ended December 31, 2025, compared to a loss of $76,715 in 2024, showing an improvement[27] Capital Expenditures and Investments - Bally's plans to develop a $4 billion casino resort in Ferry Point Park, The Bronx, featuring 3,500 slot machines and a 500-room hotel[4] - The company opened a new entertainment complex in Baton Rouge following a $160 million renovation[4] - Capital expenditures for the period from February 8, 2025, to December 31, 2025, amounted to $167.87 million, a significant increase from $16.42 million in the preceding period[39] - Cash paid for capitalized software reached $35.47 million in the current period, compared to $2.32 million previously[39] - Acquisition of gaming licenses totaled $3.00 million, up from $2.51 million in the previous year[39] Financial Position - Cash and cash equivalents increased significantly to $798,423 as of December 31, 2025, compared to $171,233 in 2024[36] - Long-term debt, including current portion, rose to $4,500,657 as of December 31, 2025, up from $3,318,773 in 2024[36] Risk Management - The company has entered into currency swaps to convert $500 million of its Term Loan Facility to €461.6 million at a fixed rate of approximately 6.69% per annum, due October 2028[39] - An additional currency swap was executed to convert $200 million of its floating rate Term Loan Facility to £159.2 million, with a tenor due October 2026[39] - The company has also engaged in $1.0 billion notional interest rate swap contracts to fix interest rates until 2028 as part of its risk management program[39] Future Outlook - Bally's anticipates continued growth in the North America Interactive segment, driven by increased user engagement and market expansion strategies[25]