UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended July 4, 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 000-17781 Gen Digital Inc. (Exact name of the registrant as specified in its charter) | Delaware | | | 77-0181864 | | --- | --- | --- ...

[Key Business Highlights](index=3&type=section&id=Key%20Business%20Highlights) dLocal achieved record TPV, revenue, gross profit, and adjusted EBITDA in Q2 2025, with strong year-over-year growth across all key metrics and improved operating leverage, leading to an upward revision of full-year 2025 guidance [Summary of Q2 2025 Performance](index=3&type=section&id=Summary%20of%20Q2%202025%20Performance) dLocal achieved record TPV, revenue, gross profit, and adjusted EBITDA in Q2 2025, with strong year-over-year growth across all key metrics, continuous improvement in operating leverage, and an upward revision of full-year 2025 guidance Key Financial Metrics for Q2 2025 | Metric | 2Q25 (million USD) | 2Q24 (million USD) | YoY Growth | 1Q25 (million USD) | QoQ Growth | YoY Growth (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TPV | 9,200 | 6,000 | +53% | 8,100 | +14% | +65% | | Revenue | 256 | 171 | +50% | 217 | +18% | +63% | | Gross Profit | 99 | 70 | +42% | 85 | +17% | +55% | | Adjusted EBITDA | 70 | 43 | +64% | 58 | +21% | - | | EBITDA | 61 | 34 | +79% | 51 | +20% | - | - Adjusted EBITDA as a percentage of gross profit reached **71%**, marking the fifth consecutive quarter of growth and demonstrating sustained operating leverage[8](index=8&type=chunk) - Free cash flow remained strong at **$48 million**[9](index=9&type=chunk) - Full-year 2025 guidance for TPV, revenue, gross profit, and adjusted EBITDA was raised[9](index=9&type=chunk) [Letter to Shareholders](index=4&type=section&id=Letter%20to%20Shareholders) The CEO highlighted strong Q2 2025 growth and execution, with record TPV, revenue, and gross profit, alongside strategic diversification and capital reallocation to mitigate currency impacts [CEO's Message](index=4&type=section&id=CEO%27s%20Message) The CEO emphasized strong Q2 2025 growth with record TPV, revenue, and gross profit, noting robust core market performance, faster growth in other regions, and strategic capital reallocation to mitigate currency impacts - TPV reached **$9.2 billion**, marking the third consecutive quarter of over **50% year-over-year growth**[11](index=11&type=chunk) - Revenue and gross profit reached **$256 million** and **$99 million** respectively, both achieving new historical highs[11](index=11&type=chunk) - Net income for the quarter was **$43 million**, negatively impacted by the Argentine Peso devaluation on the bond portfolio, with over **80%** of Argentine funds reallocated to US Treasuries[12](index=12&type=chunk) - Free cash flow for the quarter was **$48 million**, reflecting strong underlying operations[13](index=13&type=chunk) [Strategic Growth Initiatives](index=4&type=section&id=Strategic%20Growth%20Initiatives) dLocal expanded its global footprint by securing new payment licenses in the UAE, Turkey, and the Philippines, focusing on increasing wallet share with existing merchants, attracting new ones, and entering new countries to capture market opportunities - Three new payment licenses/authorizations were obtained in the UAE, Turkey, and the Philippines, expanding the financial services license portfolio across the Global South[14](index=14&type=chunk) - Currently serving nearly **760 merchants**, with the top **50 clients** averaging operations in **11 countries** and **48 payment methods**, up from **8 countries** and **35 payment methods** 18 months prior[14](index=14&type=chunk) - Revenue from the top three markets decreased to **47%** of total revenue (down **8 percentage points** from 2023), while revenue from other markets grew almost three times faster[14](index=14&type=chunk) [Corporate Governance and Capital Structure Changes](index=5&type=section&id=Corporate%20Governance%20and%20Capital%20Structure%20Changes) The board is implementing significant changes, including a commitment to a majority independent board, establishing new committees, planning to cancel treasury shares, and appointing a new CFO and SVP of Corporate Development - Commitment to transition to a majority independent board, with the search for new independent directors already underway[18](index=18&type=chunk) - Establishment of a Nominating and Corporate Governance Committee and a Compensation Committee[18](index=18&type=chunk) - Cancellation of treasury shares currently on the balance sheet to return excess capital to shareholders[18](index=18&type=chunk) - Guillermo Lopez Perez appointed as the new Chief Financial Officer, and Christopher Stromeyer as Senior Vice President of Corporate Development and Head of Investor Relations[16](index=16&type=chunk)[17](index=17&type=chunk) [Tech Update](index=7&type=section&id=Tech%20Update) dLocal continues to invest in product innovation, launching SmartPix in Brazil, expanding BNPL integrations across markets, and advancing stablecoin remittance solutions through strategic partnerships [Product Innovation and Deployments](index=7&type=section&id=Product%20Innovation%20and%20Deployments) dLocal continues to invest in product innovation, launching SmartPix in Brazil to enhance Pix payments, expanding "Buy Now, Pay Later" (BNPL) integrations in multiple markets without credit risk, and advancing stablecoin remittance solutions through a partnership with BVNK - Launched SmartPix in Brazil, a solution that redefines the Pix experience and replicates most card payment functionalities and conveniences for merchants[22](index=22&type=chunk) - Introduced "Buy Now, Pay Later" (BNPL) integrations in multiple markets, allowing merchants to benefit from significant credit demand without dLocal assuming credit risk[23](index=23&type=chunk) - Made progress in stablecoin solutions, solidifying its position as a perfect on-ramp and off-ramp provider for stablecoin participants and merchants through a partnership with BVNK[24](index=24&type=chunk) [Business highlights](index=9&type=section&id=Business%20highlights) dLocal achieved record TPV in Q2 2025, driven by strong pay-ins and cross-border transactions, with robust revenue growth across Latin America, Africa, and Asia, and high net revenue retention from existing merchants [Total Payment Volume (TPV) Breakdown](index=9&type=section&id=Total%20Payment%20Volume%20%28TPV%29%20Breakdown) Q2 2025 TPV reached a record $9.2 billion, primarily driven by strong pay-ins and cross-border transactions, with significant contributions from verticals like commerce, on-demand delivery, and ride-hailing Q2 2025 TPV Breakdown by Product and Type | TPV Type | 2Q25 (million USD) | Share | 2Q24 (million USD) | Share | YoY Growth | 1Q25 (million USD) | QoQ Growth | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **By Product** | | | | | | | | | Pay-ins | 6,395 | 69% | 4,273 | 71% | +50% | - | +18% | | Pay-outs | 2,816 | 31% | 1,763 | 29% | +60% | - | +6% | | **By Flow** | | | | | | | | | Cross-border | 4,719 | 51% | 2,701 | 45% | +75% | - | +11% | | Local to Local | 4,493 | 49% | 3,334 | 55% | +35% | - | +17% | | **Total TPV** | 9,212 | 100% | 6,035 | 100% | +53% | 8,100 | +14% | - Strong performance in Pay-ins TPV was primarily driven by verticals such as commerce, on-demand delivery, ride-hailing, SaaS, and streaming[28](index=28&type=chunk) - Quarter-over-quarter growth in Cross-border TPV was driven by verticals including commerce, SaaS, remittances, and ride-hailing across various markets[29](index=29&type=chunk) [Revenue by Geography and Merchant Type](index=9&type=section&id=Revenue%20by%20Geography%20and%20Merchant%20Type) Latin America contributed 79% of total revenue with 46% YoY growth, while Africa and Asia grew 65% YoY, and existing merchants showed strong expansion with a 145% Net Revenue Retention (NRR) Q2 2025 Revenue Breakdown by Geography | Geography | 2Q25 (million USD) | Share | 2Q24 (million USD) | Share | YoY Growth | QoQ Growth | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Latin America | 202.7 | 79% | 138.7 | 81% | +46% | +24% | | - Brazil | 47.0 | 18% | 42.3 | 25% | - | - | | - Argentina | 31.6 | 12% | 20.5 | 12% | - | - | | - Mexico | 45.7 | 18% | 35.8 | 21% | - | - | | - Other LatAm | 78.4 | 31% | 40.1 | 23% | - | - | | Africa & Asia | 53.7 | 21% | 32.6 | 19% | +65% | 0% | | - Egypt | 17.6 | 7% | 15.0 | 9% | - | - | | - Other Africa & Asia | 36.1 | 14% | 17.5 | 10% | - | - | | **Total Revenue** | 256.5 | 100% | 171.3 | 100% | +50% | +18% | - Revenue from existing merchants grew **54% year-over-year**, with a Net Revenue Retention (NRR) of **145%**, indicating strong growth from existing merchant expansion[31](index=31&type=chunk) - New merchant revenue contributed significantly, primarily from commerce, streaming, and remittances verticals[35](index=35&type=chunk) [Gross Profit by Geography](index=9&type=section&id=Gross%20Profit%20by%20Geography) Latin America accounted for 74% of total gross profit with 37% YoY growth, driven by transaction volume and favorable payment mix in Brazil and Argentina, while Africa and Asia gross profit grew 56% YoY despite an Egyptian impact Q2 2025 Gross Profit Breakdown by Geography | Geography | 2Q25 (million USD) | Share | 2Q24 (million USD) | Share | YoY Growth | QoQ Growth | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Latin America | 73.6 | 74% | 53.5 | 77% | +37% | +24% | | - Brazil | 24.3 | 25% | 19.2 | 28% | - | - | | - Argentina | 14.1 | 14% | 7.6 | 11% | - | - | | - Mexico | 11.9 | 12% | 8.8 | 13% | - | - | | - Other LatAm | 23.4 | 24% | 17.9 | 26% | - | - | | Africa & Asia | 25.3 | 26% | 16.3 | 23% | +56% | 0% | | - Egypt | 12.9 | 13% | 9.8 | 14% | - | - | | - Other Africa & Asia | 12.4 | 13% | 6.5 | 9% | - | - | | **Total Gross Profit** | 98.9 | 100% | 69.8 | 100% | +42% | +17% | - Quarter-over-quarter growth in Latin America's gross profit was primarily driven by increased transaction volumes and a favorable payment mix in Brazil and Argentina[33](index=33&type=chunk) - Quarter-over-quarter growth in Africa and Asia's gross profit was negatively impacted by Egypt, but excluding Egypt, it grew by **$3 million**, primarily due to strong performance in markets like South Africa[34](index=34&type=chunk)[41](index=41&type=chunk) [Financial highlights](index=12&type=section&id=Financial%20highlights) dLocal achieved strong Q2 2025 financial performance with significant YoY growth in TPV, revenue, gross profit, operating profit, and adjusted EBITDA, though net income decreased due to currency depreciation and fund reallocation [Key Financial Metrics](index=12&type=section&id=Key%20Financial%20Metrics) dLocal demonstrated strong Q2 2025 financial performance with significant year-over-year growth across TPV, revenue, gross profit, operating profit, adjusted EBITDA, and EBITDA, while net income decreased due to currency depreciation and fund reallocation Key Financial Metrics for Q2 2025 | Metric | 2Q25 (million USD) | 2Q24 (million USD) | YoY Change | 1Q25 (million USD) | QoQ Change | | :--- | :--- | :--- | :--- | :--- | :--- | | TPV | 9,212 | 6,035 | +53% | 8,100 | +14% | | Revenue | 256.5 | 171.3 | +50% | 216.8 | +18% | | Gross Profit | 98.9 | 69.8 | +42% | 84.9 | +17% | | Gross Profit Margin | 39% | 41% | -2p.p | 39% | 0p.p | | Operating Profit | 55.8 | 30.2 | +85% | 45.8 | +22% | | Adjusted EBITDA | 70.1 | 42.7 | +64% | 57.9 | +21% | | Adjusted EBITDA Margin | 27% | 25% | +2p.p | 27% | 0p.p | | Adjusted EBITDA/Gross Profit | 71% | 61% | +10p.p | 68% | +3p.p | | Net Income | 42.8 | 46.2 | -7% | 46.7 | -8% | | Diluted EPS | 0.14 | 0.15 | - | 0.15 | - | | Free Cash Flow | 48.4 | 19.0 | +156% | 39.7 | +22% | - Net financial result was a **$3.8 million loss**, compared to a **$28 million gain** in Q2 2024, primarily due to the negative impact of Argentine Peso depreciation on the bond portfolio[41](index=41&type=chunk) - As of June 30, 2025, dLocal held **$476.9 million** in cash and cash equivalents, with **$253.8 million** in corporate cash and cash equivalents[43](index=43&type=chunk) [2025 Guidance Update](index=14&type=section&id=2025%20Guidance%20Update) dLocal raised its full-year 2025 guidance for TPV, revenue, gross profit, and adjusted EBITDA, reflecting strong first-half performance and anticipated continued growth momentum, while also highlighting potential risks from macroeconomic changes and currency depreciation 2025 Guidance Update | Metric | Original 2025 Guidance (YoY) | New 2025 Guidance Range (YoY) | | :--- | :--- | :--- | | TPV | 35% - 45% | 40% - 50% | | Revenue | 25% - 35% | 30% - 40% | | Gross Profit | 20% - 25% | 27.5% - 37.5% | | Adjusted EBITDA | 20% - 30% | 40% - 50% | - Potential risks highlighted by the company include changes in global macroeconomic, monetary, and trade landscapes affecting emerging markets; recent tariff increases in Mexico and potential trade barriers in other markets; changes in Brazil's fiscal regime; and the potential impact of currency depreciation and/or foreign exchange regime changes in Argentina and Egypt[44](index=44&type=chunk)[47](index=47&type=chunk) [Appendix](index=15&type=section&id=Appendix) This section provides definitions for key operational metrics, reconciliations for non-IFRS measures, earnings per share calculations, consolidated financial statements, and company information with forward-looking statements [Definition of selected operational metrics](index=20&type=section&id=Definition%20of%20selected%20operational%20metrics) This section defines key operational metrics used by dLocal, including API, cross-border payments, local payment methods, local-to-local payments, Net Revenue Retention (NRR), pay-ins, pay-outs, new merchant revenue, existing merchant revenue, and Total Payment Volume (TPV) - **API**: Application Programming Interface, used by software developers to integrate with specific services or applications[69](index=69&type=chunk) - **Cross-border Payments**: Payment transactions where dLocal collects funds in one currency and settles in a different currency and/or geographic location[70](index=70&type=chunk) - **Net Revenue Retention (NRR)**: Measures the retention and growth of dLocal's merchants, calculated by dividing revenue from all customers in the current period/year by revenue from the same customers in the prior period/year[72](index=72&type=chunk) - **TPV**: Total Payment Volume, referring to the total value of all payments successfully processed through dLocal's payment platform[75](index=75&type=chunk) [Reconciliation of Non-IFRS Measures](index=15&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section details the definitions and reconciliations for Adjusted EBITDA, Adjusted Net Income, and constant currency metrics (TPV, revenue, gross profit), noting that dLocal considers Adjusted EBITDA an IFRS measure per IFRS 8, while others are non-IFRS - **Adjusted EBITDA** is defined as operating profit before depreciation, amortization, financial income and costs, impairment loss/gain on financial assets, transaction costs, non-cash share-based payment expenses, other operating gains/losses, other non-recurring costs, and inflation adjustment[49](index=49&type=chunk) Adjusted EBITDA Reconciliation (Q2 2025) | Item | 2025 Q2 (thousand USD) | | :--- | :--- | | Profit for the period | 42,808 | | Income tax expense | 8,188 | | Depreciation and amortization | 5,540 | | Financial income and costs, net | 3,785 | | Non-cash share-based payment expenses | 4,911 | | Other operating losses | 2,480 | | Impairment loss/(gain) on financial assets | 1,415 | | Inflation adjustment | 984 | | **Adjusted EBITDA** | **70,111** | Constant Currency Metrics Reconciliation (Q2 2025 vs Q2 2024) | Metric | 2Q25 (Reported) | 2Q24 (Reported) | YoY Change (Reported) | 2Q25 (Constant Currency) | 2Q24 (Constant Currency) | YoY Change (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | TPV | 9,212 | 6,035 | 53% | 9,960 | 6,035 | 65% | | Revenue | 256 | 171 | 50% | 279 | 171 | 63% | | Gross Profit | 99 | 70 | 42% | 108 | 70 | 55% | [Earnings per share](index=18&type=section&id=Earnings%20per%20share) This section explains the calculation of basic and diluted earnings per share, based on profit attributable to group owners and weighted average ordinary shares, including adjustments for dilutive potential ordinary shares Earnings Per Share Calculation (Q2 2025) | Item | 2025 Q2 | | :--- | :--- | | Profit attributable to ordinary shareholders (USD) | 42,810,218 | | Weighted average number of ordinary shares | 289,578,429 | | Adjustments for calculation of diluted EPS | 11,543,051 | | Weighted average number of ordinary shares for diluted EPS | 301,121,480 | | **Basic EPS** | **0.15** | | **Diluted EPS** | **0.14** | [Consolidated Financial Statements](index=21&type=section&id=Consolidated%20Financial%20Statements) This section presents dLocal's unaudited consolidated statements of comprehensive income, financial position, and cash flows for the three and six months ended June 30, 2025, and 2024, detailing the company's financial performance and health Consolidated Statement of Comprehensive Income Summary (Q2 2025 vs Q2 2024) | Item (thousand USD) | 2025 Q2 | 2024 Q2 | | :--- | :--- | :--- | | Revenue | 256,458 | 171,279 | | Cost of sales | (157,573) | (101,468) | | Gross profit | 98,885 | 69,811 | | Operating profit | 55,765 | 30,195 | | Profit before tax | 50,996 | 56,299 | | Profit for the period | 42,808 | 46,239 | | Total comprehensive income for the period | 47,111 | 40,635 | Consolidated Statement of Financial Position Summary (As of June 30, 2025 vs June 30, 2024) | Item (thousand USD) | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Total current assets | 1,120,364 | 1,118,920 | | Total non-current assets | 100,948 | 76,764 | | **Total Assets** | **1,221,312** | **1,195,684** | | Total current liabilities | 766,517 | 747,877 | | Total non-current liabilities | 6,615 | 5,405 | | **Total Liabilities** | **773,132** | **753,282** | | Total equity attributable to owners of the Group | 447,960 | 442,287 | | **Total Equity** | **448,180** | **442,402** | Consolidated Statement of Cash Flows Summary (Q2 2025 vs Q2 2024) | Item (thousand USD) | 2025 Q2 | 2024 Q2 | | :--- | :--- | :--- | | Net cash generated from operating activities | 124,459 | 28,808 | | Net cash used in investing activities | (10,493) | 2,894 | | Net cash used in financing activities | (150,520) | (82,837) | | Net increase/(decrease) in cash and cash equivalents | (36,554) | (51,135) | | Cash and cash equivalents at end of period | 476,939 | 531,620 | [Company Information and Forward-Looking Statements](index=24&type=section&id=Company%20Information%20and%20Forward-Looking%20Statements) This section provides details for the conference call and webcast, an overview of dLocal's business as an emerging markets payment platform, and a cautionary note regarding forward-looking statements, emphasizing inherent risks and uncertainties - dLocal powers local payments in emerging markets through its "One dLocal" platform (one direct API, one platform, and one contract), connecting global enterprise merchants with billions of emerging market consumers across **40+ countries** in Africa, Asia, and Latin America[82](index=82&type=chunk) - Forward-looking statements, including guidance, are based on management's current expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed[84](index=84&type=chunk)[85](index=85&type=chunk) - dLocal undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law[86](index=86&type=chunk)

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Accuray's fiscal Q4 and full-year 2025 results show mixed revenue performance but improved profitability and strategic advancements [Key Fiscal Fourth Quarter Highlights](index=1&type=section&id=Key%20Fiscal%20Fourth%20Quarter%20Highlights) Accuray reported a decrease in total net revenue for Q4 FY25, primarily due to a decline in product revenue, while service revenue saw an increase. Net income and Adjusted EBITDA also decreased compared to the prior year, with a book-to-bill ratio of 1.2 | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------------- | :----------------- | :----------------- | :--------- | | Total Net Revenue | $127.5 | $134.3 | -5% | | Product Revenue | $70.7 | $79.7 | -11% | | Service Revenue | $56.8 | $54.6 | +4% | | Net Income | $1.1 | $3.4 | -67.6% | | Adjusted EBITDA | $9.4 | $10.1 | -6.9% | | Order Book-to-Bill | 1.2 | N/A | N/A | [Key Fiscal Year 2025 Highlights](index=1&type=section&id=Key%20Fiscal%20Year%202025%20Highlights) For the full fiscal year 2025, Accuray achieved an increase in total net revenue driven by growth in both product and service revenues. The company significantly reduced its net loss and improved Adjusted EBITDA compared to the prior fiscal year, maintaining a book-to-bill ratio of 1.2 | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------------- | :-------------- | :-------------- | :--------- | | Total Net Revenue | $458.5 | $446.6 | +3% | | Product Revenue | $237.6 | $234.2 | +1% | | Service Revenue | $220.9 | $212.4 | +4% | | Net Loss | $1.6 | $15.5 | -89.7% | | Adjusted EBITDA | $28.3 | $19.7 | +43.6% | | Order Book-to-Bill | 1.2 | N/A | N/A | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted the company's strategic advancements in innovation, access, and service growth, successfully navigating a challenging environment. They emphasized annual revenue growth, strong service performance, adjusted EBITDA margin expansion, and the successful completion of debt refinancing - CEO Suzanne Winter noted the advancement of the company's strategy of innovation, access, and service growth, along with annual revenue growth, strong service performance, adjusted EBITDA margin expansion, and successful debt refinancing[4](index=4&type=chunk) - CFO Ali Pervaiz highlighted the team's resilience despite macroeconomic challenges and tariff uncertainty, steady operational progress, customer adoption through product portfolio expansion, and the announcement of refinancing plans[14](index=14&type=chunk) [Fiscal Fourth Quarter 2025 Financial Results](index=1&type=section&id=Fiscal%20Fourth%20Quarter%202025%20Financial%20Results) Accuray's Q4 FY25 financial results detail revenue, profitability, and cash position, showing mixed performance [Revenue Performance (Q4 FY25)](index=1&type=section&id=Revenue%20Performance%20%28Q4%20FY25%29) Total net revenue for the fourth quarter of fiscal 2025 decreased by 5% year-over-year, primarily driven by an 11% decline in product revenue, while service revenue experienced a 4% increase | Revenue Type | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------- | :----------------- | :----------------- | :--------- | | Total Net Revenue | $127.5 | $134.3 | -5% | | Product Revenue | $70.7 | $79.7 | -11% | | Service Revenue | $56.8 | $54.6 | +4% | [Profitability and Expenses (Q4 FY25)](index=1&type=section&id=Profitability%20and%20Expenses%20%28Q4%20FY25%29) Gross profit increased slightly in Q4 FY25, improving as a percentage of net revenue. However, operating expenses rose by 10%, leading to a decrease in net income and Adjusted EBITDA compared to the prior year's fourth quarter | Metric | Q4 FY25 (Millions) | Q4 FY24 (Millions) | Change (%) | | :------------------- | :----------------- | :----------------- | :--------- | | Total Gross Profit | $39.0 | $38.5 | +1.3% | | Gross Profit Margin | 30.6% | 28.6% | +2.0 ppts | | Operating Expenses | $34.7 | $31.6 | +10% | | Net Income | $1.1 | $3.4 | -67.6% | | Net Income Per Share | $0.01 | $0.03 | -66.7% | | Adjusted EBITDA | $9.4 | $10.1 | -6.9% | [Order Backlog and Cash Position (Q4 FY25)](index=1&type=section&id=Order%20Backlog%20and%20Cash%20Position%20%28Q4%20FY25%29) Accuray's ending order backlog decreased both quarter-over-quarter and year-over-year. The company's cash, cash equivalents, and short-term restricted cash also saw a sequential decline | Metric | As of June 30, 2025 (Millions) | As of March 31, 2025 (Millions) | As of June 30, 2024 (Millions) | Change QoQ (%) | Change YoY (%) | | :---------------------------------- | :----------------------------- | :------------------------------ | :----------------------------- | :------------- | :------------- | | Ending Order Backlog | $427.0 | N/A | $487.3 | -5.6% | -12.4% | | Cash, Cash Equivalents, Restricted Cash | $58.0 | $78.8 | N/A | -26.4% | N/A | [Fiscal Year 2025 Financial Results](index=2&type=section&id=Fiscal%20Year%202025%20Financial%20Results) Accuray's full fiscal year 2025 financial results detail overall revenue and profitability performance [Revenue Performance (FY25)](index=2&type=section&id=Revenue%20Performance%20%28FY25%29) For fiscal year 2025, Accuray reported a 3% increase in total net revenue, driven by modest growth in both product and service revenues compared to the prior fiscal year | Revenue Type | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------- | :-------------- | :-------------- | :--------- | | Total Net Revenue | $458.5 | $446.6 | +3% | | Product Revenue | $237.6 | $234.2 | +1% | | Service Revenue | $220.9 | $212.4 | +4% | [Profitability and Expenses (FY25)](index=2&type=section&id=Profitability%20and%20Expenses%20%28FY25%29) Accuray improved its gross profit and gross profit margin for fiscal year 2025, while operating expenses decreased. This led to a significant reduction in GAAP net loss and a substantial increase in Adjusted EBITDA compared to the previous fiscal year | Metric | FY25 (Millions) | FY24 (Millions) | Change (%) | | :------------------- | :-------------- | :-------------- | :--------- | | Total Gross Profit | $147.0 | $142.9 | +2.9% | | Gross Profit Margin | 32.1% | 32.0% | +0.1 ppts | | Operating Expenses | $139.1 | $142.4 | -2% | | GAAP Net Loss | $1.6 | $15.5 | -89.7% | | GAAP Net Loss Per Share | $0.02 | $0.16 | -87.5% | | Adjusted EBITDA | $28.3 | $19.7 | +43.6% | [Fiscal Year 2026 Financial Guidance](index=2&type=section&id=Fiscal%20Year%202026%20Financial%20Guidance) Accuray's FY26 guidance projects increased total net revenue and Adjusted EBITDA, based on current expectations and market conditions | Metric | FY26 Guidance (Millions) | | :------------------- | :----------------------- | | Total Net Revenue | $471 to $485 | | Adjusted EBITDA | $31 to $35 | [Conference Call Information](index=2&type=section&id=Conference%20Call%20Information) Accuray hosted a conference call on August 13, 2025, to discuss Q4 and FY25 results, with webcast and replay details provided - Accuray hosted a conference call on August 13, 2025, at 1:30 p.m. PT/4:30 p.m. ET to discuss Q4 FY25 results and corporate developments[16](index=16&type=chunk) - Live access was available via the Investor Relations section of Accuray's website (www.accuray.com), with a slide presentation also accessible[16](index=16&type=chunk) - A taped replay of the conference call was available for seven days, with specific dial-in numbers for USA and International callers, and an archived webcast on the company's website[17](index=17&type=chunk)[18](index=18&type=chunk)[19](index=19&type=chunk) [Use of Non-GAAP Financial Measures](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Accuray supplements GAAP with non-GAAP measures like Adjusted EBITDA, excluding specific items, for performance comparison, acknowledging their limitations - Accuray uses non-GAAP financial measures, such as Adjusted EBITDA, to supplement its GAAP financial results[20](index=20&type=chunk) - Adjusted EBITDA excludes depreciation and amortization, stock-based compensation expense, interest expense, provision for income taxes, changes to the fair value of warrant liability, ERP and ERP related expenditures, restructuring charges, and certain non-recurring items[21](index=21&type=chunk) - Management believes non-GAAP measures provide useful supplemental information for investors and facilitate meaningful comparisons, but acknowledges their limitations as they are not GAAP-compliant and should not be considered in isolation[21](index=21&type=chunk)[22](index=22&type=chunk) [About Accuray](index=4&type=section&id=About%20Accuray) Accuray Incorporated advances radiation therapy with unique oncology and neuro-radiosurgery solutions, headquartered in Madison, Wisconsin - Accuray Incorporated (Nasdaq: ARAY) is committed to expanding the potential of radiation therapy to improve lives[23](index=23&type=chunk) - The company invents unique, market-changing solutions for radiation treatments in oncology, neuro-radiosurgery, and beyond, addressing the full spectrum of patient needs[23](index=23&type=chunk) - Accuray is headquartered in Madison, Wisconsin, with facilities worldwide[23](index=23&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) Forward-looking statements on future results, guidance, and strategies are subject to risks like macroeconomic factors, supply chain, and tariffs, with no obligation to update - Statements in the press release that are not historical facts are forward-looking and subject to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995[24](index=24&type=chunk) - Forward-looking statements relate to future results, guidance (total net revenue, adjusted EBITDA), strategy execution, impact of tariffs, debt refinancing, supply chain, macroeconomic challenges, China joint venture, strategic partnerships, new product introductions, and service growth[24](index=24&type=chunk) - Risks and uncertainties include the global macroeconomic environment, supply chain disruptions, market acceptance of products, outstanding indebtedness, international tariffs, benefits of the China joint venture, gross margins, regulatory approvals, credit facility covenants, and backlog conversion[24](index=24&type=chunk)[25](index=25&type=chunk) - The company assumes no obligation to update forward-looking statements to reflect actual performance or changes in assumptions, except as required by applicable securities laws[26](index=26&type=chunk) [Financial Tables](index=7&type=section&id=Financial%20Tables) This section presents detailed financial statements, including operations, balance sheets, order data, and non-GAAP reconciliations [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This table provides a detailed breakdown of Accuray's revenues, costs, gross profit, operating expenses, and net income (loss) for the three and twelve months ended June 30, 2025, and 2024, highlighting changes in profitability metrics | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Net revenue: | | | | | | Products | $70,702 | $79,673 | $237,580 | $234,164 | | Services | $56,841 | $54,616 | $220,925 | $212,387 | | Total net revenue | $127,543 | $134,289 | $458,505 | $446,551 | | Gross profit | $38,979 | $38,452 | $146,967 | $142,921 | | Total operating expenses | $34,745 | $31,635 | $139,128 | $142,417 | | Income from operations | $4,234 | $6,817 | $7,839 | $504 | | Net income (loss) | $1,123 | $3,387 | $(1,591) | $(15,545) | | Net income (loss) per share - basic | $0.01 | $0.03 | $(0.02) | $(0.16) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This table presents Accuray's financial position as of June 30, 2025, and June 30, 2024, detailing assets, liabilities, and stockholders' equity. Notable changes include a decrease in cash and accounts receivable, an increase in inventories, and a significant increase in total stockholders' equity | Metric (in thousands) | June 30, 2025 | June 30, 2024 | | :-------------------- | :------------ | :------------ | | Assets: | | | | Cash and cash equivalents | $57,416 | $68,570 | | Accounts receivable, net | $83,192 | $92,001 | | Inventories | $141,020 | $138,324 | | Total current assets | $317,465 | $323,236 | | Total assets | $470,239 | $468,627 | | Liabilities: | | | | Accounts payable | $34,033 | $50,020 | | Deferred revenue (current) | $82,306 | $71,649 | | Short-term debt, net | $15,583 | $7,756 | | Total current liabilities | $195,428 | $195,267 | | Long-term debt, net | $120,937 | $164,400 | | Total liabilities | $389,070 | $423,543 | | Stockholders' Equity: | | | | Total stockholders' equity | $81,169 | $45,084 | [Summary of Orders and Backlog](index=9&type=section&id=Summary%20of%20Orders%20and%20Backlog) This table provides a summary of Accuray's gross orders, net orders, and order backlog for the three and twelve months ended June 30, 2025, and 2024, along with the book-to-bill ratio | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Gross orders | $84,741 | $95,472 | $288,035 | $342,148 | | Net orders | $45,282 | $63,773 | $177,233 | $210,914 | | Order backlog | $426,972 | $487,319 | $426,972 | $487,319 | | Book to bill ratio (a) | 1.2 | N/A | 1.2 | 1.5 | [Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This table reconciles GAAP net income (loss) to Adjusted EBITDA for the three and twelve months ended June 30, 2025, and 2024, by adding back non-cash and non-operating expenses such as depreciation, stock-based compensation, interest, and other specific adjustments | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | GAAP net income (loss) | $1,123 | $3,387 | $(1,591) | $(15,545) | | Depreciation and amortization | $1,598 | $1,507 | $6,150 | $5,905 | | Stock-based compensation | $2,818 | $2,042 | $10,201 | $9,483 | | Interest expense, net | $3,937 | $2,686 | $11,762 | $10,676 | | Provision for income taxes | $948 | $471 | $2,725 | $3,725 | | Adjusted EBITDA | $9,448 | $10,093 | $28,271 | $19,692 | [Forward-Looking Guidance Reconciliation](index=9&type=section&id=Forward-Looking%20Guidance%20Reconciliation) This table provides a reconciliation of projected GAAP net loss to projected Adjusted EBITDA for the fiscal year ending June 30, 2026, outlining the adjustments for non-GAAP items | Metric (in thousands) | Twelve Months Ending June 30, 2026 (From) | Twelve Months Ending June 30, 2026 (To) | | :-------------------- | :---------------------------------------- | :-------------------------------------- | | GAAP net loss | $(12,000) | $(8,000) |\ | Depreciation and amortization | $6,000 | $6,000 |\ | Stock-based compensation | $10,500 | $10,500 |\ | Interest expense, net | $23,500 | $23,500 |\ | Provision for income taxes | $3,000 | $3,000 |\ | Adjusted EBITDA | $31,000 | $35,000 |

[Management Commentary and Business Highlights](index=1&type=section&id=Management%20Commentary%20and%20Business%20Highlights) Management noted sequential improvement in net revenue, driven by occasion and bridesmaid dresses, while casual wear and footwear remained soft; the company achieved positive Adjusted EBITDA, reduced debt, and is negotiating a new credit facility - The company saw sequential improvement in revenue trends and strength in occasion dresses, but faced softness in casual wear and footwear[3](index=3&type=chunk) - Lulus achieved **positive Adjusted EBITDA**, reduced total debt, and expects continued positive Adjusted EBITDA in Q3 2025[4](index=4&type=chunk) - The company is actively repositioning its casual wear and footwear categories to better align with its core strengths in event attire[3](index=3&type=chunk) - An amendment to the Forbearance Agreement with Bank of America was executed, extending the Forbearance Termination Event and Maturity Date to August 22, 2025, as the company negotiates a new asset-based revolving credit facility[7](index=7&type=chunk) [Q2 2025 Financial & Operational Performance](index=1&type=section&id=Q2%202025%20Financial%20%26%20Operational%20Performance) In Q2 2025, Lulus reported an **11% decrease in net revenue to $81.5 million**, driven by a 16% drop in total orders, though Average Order Value increased slightly; the company significantly narrowed its net loss to $3.0 million and achieved positive Adjusted EBITDA of $0.5 million [Key Financial & Operating Metrics](index=1&type=section&id=Key%20Financial%20%26%20Operating%20Metrics) Key metrics for Q2 2025 showed a year-over-year decline in revenue and active customers, but an improvement in net loss and a shift to positive Adjusted EBITDA, with Average Order Value slightly increasing Second Quarter 2025 Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $81.5M | $92.0M | -11% | | Gross Profit | $36.9M | $41.9M | -12% | | Gross Margin | 45.3% | 45.5% | -20 bps | | Net Loss | ($3.0M) | ($10.8M) | Improved | | Adjusted EBITDA* | $0.5M | ($0.2M) | Improved | | Active Customers | 2.5M | 2.7M | -8% | | Average Order Value | $145 | $143 | +1% | | Free Cash Flow* | ($1.9M) | $3.0M | Decreased | [Condensed Consolidated Statements of Operations](index=2&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, net revenue decreased to $81.5 million, gross profit declined, but loss from operations improved, and net loss significantly reduced to ($3.0) million Statement of Operations Summary (Thirteen Weeks Ended, in millions) | Account | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net revenue | $81.52M | $91.97M | | Gross profit | $36.93M | $41.88M | | Loss from operations | ($2.62M) | ($4.47M) | | Net loss | ($3.00M) | ($10.80M) | | Diluted loss per share | ($1.08) | ($3.92) | [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets decreased to $101.0 million, cash and equivalents declined, total liabilities increased, and total stockholders' equity significantly decreased to $4.3 million Balance Sheet Summary (in millions) | Account | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $1.53M | $4.46M | | Inventory, net | $37.35M | $34.04M | | Total assets | $100.96M | $108.20M | | Revolving line of credit | $5.75M | $13.09M | | Total liabilities | $96.71M | $94.83M | | Total stockholders' equity | $4.25M | $13.37M | [Condensed Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the twenty-six weeks ended June 29, 2025, net cash provided by operating activities decreased to $7.0 million, while net cash used in financing activities was $8.8 million, primarily due to debt repayments Cash Flow Summary (Twenty-Six Weeks Ended, in millions) | Category | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6.97M | $10.64M | | Net cash used in investing activities | ($1.05M) | ($1.62M) | | Net cash used in financing activities | ($8.84M) | ($9.74M) | | Net decrease in cash and cash equivalents | ($2.93M) | ($0.73M) | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Lulus updated its financial outlook, expecting positive Adjusted EBITDA in Q3 2025 and forecasting full-year 2025 capital expenditures at approximately $2.5 million - The company expects to generate **positive Adjusted EBITDA** in the third quarter of 2025[12](index=12&type=chunk) - Full-year 2025 capital expenditures are now expected to be approximately **$2.5 million**, which is at the low end of the previously guided range of $2.5 million to $3.0 million[12](index=12&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) The company utilizes non-GAAP measures like Adjusted EBITDA, Net Debt, and Free Cash Flow for performance evaluation, with Q2 2025 Adjusted EBITDA at $0.5 million, Net Debt at $4.2 million, and Free Cash Flow at ($1.9) million [Definitions of Key Metrics](index=5&type=section&id=Definitions%20of%20Key%20Metrics) The report defines key non-GAAP measures and operating metrics used for performance evaluation, including Adjusted EBITDA, Active Customers, Free Cash Flow, and Net Debt - Adjusted EBITDA is defined as net loss before interest expense, income taxes, depreciation and amortization, adjusted for equity-based compensation and other non-routine expenses[20](index=20&type=chunk) - Active Customers are defined as the number of customers who made at least one purchase in the prior 12-month period[23](index=23&type=chunk) - Free Cash Flow is defined as net cash provided by operating activities less cash used for capitalized software development costs and purchases of property and equipment[25](index=25&type=chunk) - Net Debt is defined as total debt (revolving line of credit) less cash and cash equivalents[27](index=27&type=chunk) [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Detailed reconciliations for non-GAAP measures show Q2 2025 Adjusted EBITDA at $0.5 million, Free Cash Flow at ($1.9) million, and Net Debt at ($4.2) million Reconciliation of Net Loss to Adjusted EBITDA (Thirteen Weeks Ended, in millions) | Account | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net loss | ($3.00M) | ($10.80M) | | Depreciation and amortization | $1.37M | $1.28M | | Interest expense | $0.86M | $0.27M | | Income tax provision (benefit) | $0.06M | $6.33M | | Equity-based compensation expense | $1.28M | $2.19M | | Other non-routine expense | $0.00M | $0.42M | | **Adjusted EBITDA** | **$0.48M** | **($0.21M)** | Reconciliation of Free Cash Flow (Thirteen Weeks Ended, in millions) | Category | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($1.36M) | $3.69M | | Capitalized software development costs | ($0.38M) | ($0.34M) | | Purchases of property and equipment | ($0.14M) | ($0.32M) | | **Free Cash Flow** | **($1.88M)** | **$3.03M** | Reconciliation of Net Debt (in millions) | Account | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | Total debt | ($5.75M) | ($13.09M) | | Cash and cash equivalents | $1.53M | $4.46M | | **Net Debt** | **($4.22M)** | **($8.63M)** |

PART I. FINANCIAL INFORMATION [Item 1. Condensed Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Financial%20Statements%20(unaudited)) Unaudited H1 2025 statements reveal decreased revenue, continued net losses, asset growth from financing, and substantial doubt about going concern [Condensed Balance Sheets](index=4&type=section&id=Condensed%20Balance%20Sheets) Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $7,846 | $6,535 | | Total current assets | $9,884 | $8,210 | | **TOTAL ASSETS** | **$11,114** | **$9,843** | | Total current liabilities | $2,563 | $1,869 | | **Total liabilities** | **$4,401** | **$3,872** | | **Total stockholders' equity** | **$6,713** | **$5,971** | - Cash and cash equivalents increased to **$7.8 million** as of June 30, 2025, from **$6.5 million** at the end of 2024, primarily due to financing activities[14](index=14&type=chunk) [Condensed Statements of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $564 | $901 | $1,290 | $1,620 | | Gross Profit | $245 | $470 | $568 | $940 | | Loss from Operations | $(2,857) | $(3,872) | $(6,534) | $(7,378) | | Net Loss | $(2,769) | $(3,826) | $(6,385) | $(7,402) | | Net Loss Per Share (Basic & Diluted) | $(0.36) | $(8.16) | $(1.14) | $(17.92) | - Revenue for the three and six months ended June 30, 2025, decreased by **37%** and **20%** respectively compared to the same periods in 2024[17](index=17&type=chunk) [Condensed Statements of Convertible Preferred Stock and Stockholders' Equity](index=6&type=section&id=Condensed%20Statements%20of%20Convertible%20Preferred%20Stock%20and%20Stockholders%27%20Equity) - Total stockholders' equity increased from **$5.97 million** at December 31, 2024, to **$6.71 million** at June 30, 2025[19](index=19&type=chunk)[20](index=20&type=chunk) - During the first six months of 2025, the company issued common stock, pre-funded warrants, and warrants, raising net proceeds of **$2.7 million** from an inducement agreement and **$3.5 million** from other offerings[20](index=20&type=chunk) [Condensed Statements of Cash Flows](index=9&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(4,697) | $(4,758) | | Net cash used in investing activities | $(192) | $(119) | | Net cash provided by financing activities | $6,200 | $4,371 | | **Net Increase (Decrease) in Cash** | **$1,311** | **$(460)** | - Financing activities in the first six months of 2025 provided **$6.2 million** in cash, primarily from the issuance of common stock and warrants, which more than offset the **$4.7 million** cash used in operations[22](index=22&type=chunk) [Notes to Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) - The company is a medical device firm focused on its Catamaran™ SI Joint Fusion System for treating lower back pain, which received FDA clearance in 2018[25](index=25&type=chunk) - Management has expressed substantial doubt about the company's ability to continue as a going concern for at least one year, as existing cash is insufficient to meet obligations, and plans to raise additional capital to fund operations[29](index=29&type=chunk)[30](index=30&type=chunk) - In March 2025, the company raised net proceeds of **$2.7 million** through a warrant exercise inducement and an additional **$3.5 million** through securities purchase agreements[48](index=48&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) - Subsequent to the quarter end, on August 1, 2025, the company acquired substantially all assets of SiVantage, Inc. (the "SImmetry Acquisition") and SIMPL Medical, LLC (the "SIMPL Acquisition") to expand its product portfolio in sacropelvic fixation and fusion[70](index=70&type=chunk)[72](index=72&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes H1 2025 revenue decline to fewer procedures, reduced operating expenses, but liquidity remains critical with going concern doubt [Overview](index=21&type=section&id=Overview) - The company's core product is the FDA-approved Catamaran™ SI Joint Fusion System, a less invasive implant for treating SI Joint dysfunction, a cause of chronic lower back pain[81](index=81&type=chunk) - Tenon Medical has incurred net losses since its inception in 2012 and had an accumulated deficit of approximately **$75.1 million** as of June 30, 2025[85](index=85&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Comparison of Operating Results (in thousands) | Metric | Six Months 2025 | Six Months 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,290 | $1,620 | $(330) | (20)% | | Gross Profit | $568 | $940 | $(372) | (40)% | | Total Operating Expenses | $7,102 | $8,318 | $(1,216) | (15)% | - The decrease in revenue for the first six months of 2025 was primarily due to a reduction in the number of surgical procedures performed using The Catamaran System[96](index=96&type=chunk) - Total operating expenses for the six months ended June 30, 2025, decreased by **$1.2 million** (**15%**) compared to the prior year, driven by reductions in stock-based compensation, insurance costs, and professional fees across all expense categories[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had cash and cash equivalents of **$7.8 million** and an accumulated deficit of **$75.1 million**[103](index=103&type=chunk)[104](index=104&type=chunk) - Management states that existing cash is not sufficient to fund operations for the next 12 months, which raises substantial doubt about the company's ability to continue as a going concern[104](index=104&type=chunk)[105](index=105&type=chunk) - For the six months ended June 30, 2025, net cash provided by financing activities was **$6.2 million**, primarily from stock and warrant issuances, which offset the **$4.7 million** of cash used in operating activities[106](index=106&type=chunk)[108](index=108&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Tenon Medical is not required to provide this information - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a "smaller reporting company"[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective as of June 30, 2025, due to a material weakness in internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were not effective as of June 30, 2025[112](index=112&type=chunk) - A material weakness exists in internal controls due to the inability to effectively segregate accounting duties, which is attributed to the company's limited size and resources[113](index=113&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company reported no legal proceedings during the period - There are no legal proceedings to report[117](index=117&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, no material changes to risk factors were reported from the prior Annual Report on Form 10-K - There were no material changes in the company's risk factors as previously disclosed in its Annual Report on Form 10-K filed on March 26, 2025[118](index=118&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - The company reported no unregistered sales of equity securities[119](index=119&type=chunk) [Item 3. Defaults Upon Senior Securities](index=28&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[121](index=121&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[122](index=122&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) The company reported no other information - None reported[123](index=123&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section indexes all exhibits filed with the Form 10-Q, including corporate governance documents and certifications - This section lists all exhibits filed as part of the quarterly report, including certifications by the CEO and CFO[125](index=125&type=chunk)

(Exact name of registrant as specified in its charter) Delaware 001-40444 86-1740840 (State or other jurisdiction CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) August 13, 2025 WASHINGTON, D.C. 20549 ____________________ flyExclusive, Inc. FORM 8-K (Commission File Number) (IRS Employer Identification No.) 2860 Jetport Road, Kinston, NC 28504 (Address of principal executiv ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ____________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) August 13, 2025 flyExclusive, Inc. (Address of principal executive offices) (Zip Code) 252-208-7715 Registrant's telephone number, including area code Not Applicable (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8- ...

[Q2 2025 Financial Results and Operational Highlights](index=1&type=section&id=Q2%202025%20Financial%20Results%20and%20Operational%20Highlights) Aqua Metals made significant operational, financial, and strategic advancements in Q2 2025, progressing AquaRefining™ technology and strengthening its market position [Second Quarter and Recent Highlights](index=2&type=section&id=Second%20Quarter%20and%20Recent%20Highlights) Aqua Metals achieved significant operational, financial, and strategic progress in the second quarter, advancing its AquaRefining™ technology commercialization [Operational Initiatives](index=2&type=section&id=Operational%20Initiatives) Aqua Metals achieved significant operational milestones, including producing industry-leading low-fluorine lithium carbonate and over 1 metric ton of high-purity NMC mixed hydroxide cake - Produced Industry-Leading Low-Fluorine Lithium Carbonate: Reduced fluorine content to **less than 30 parts per million (ppm)**, meeting stringent specifications of cathode active material (CAM) producers, with approximately **100 kilograms produced** and sampled by strategic counterparties[7](index=7&type=chunk) - High-Purity NMC Cake Production: Produced over **1 metric ton** of nickel-manganese-cobalt (NMC) mixed hydroxide cake for qualification sampling with potential partners[7](index=7&type=chunk) - Expanded Alternative Feedstock Testing: Successfully tested undersea mining nodules and nickel refinery residue as additional potential feedstocks[7](index=7&type=chunk) - Initiated Sodium Sulfate Regeneration Trials: Began testing an innovative sodium sulfate regeneration process to support precursor cathode active material (pCAM) producers[7](index=7&type=chunk) - Advanced ARC Facility Design: Started design of a scalable AquaRefining™ Commercial (ARC) facility capable of processing **10,000 to 60,000 metric tons per year** of black mass[7](index=7&type=chunk) - Demonstrated Cost Competitiveness: An internal study showed AquaRefining™ in the U.S. is cost competitive with Chinese hydrometallurgical recycling and operates at approximately **half the cost** of traditional U.S. hydrometallurgical methods[7](index=7&type=chunk) [Financial Initiatives](index=2&type=section&id=Financial%20Initiatives) The company significantly improved its financial health by generating $4.3 million from asset sales, implementing an equity line of credit, and eliminating all long-term debt - Generated Cash from Non-Core Asset Sales: Completed the **$4.3 million** sale of the Sierra ARC facility and sold **$200,000** in non-core equipment[7](index=7&type=chunk) - Strengthened Balance Sheet: Eliminated all long-term debt[7](index=7&type=chunk) - Improved Liquidity: Cash and cash equivalents increased from **$1.6 million** at the start of the quarter to over **$1.9 million** at quarter-end[7](index=7&type=chunk) - Extended Cash Runway: Gains driven by the building sale, implementation of the **$10 million** equity line of credit (ELOC), and reduced cash burn following the sale[7](index=7&type=chunk) [Milestone Announcements](index=2&type=section&id=Milestone%20Announcements) Key milestones included showcasing AquaRefining™ technology to over 100 stakeholders, receiving a foundational U.S. patent, and completing a CFO transition - Showcased Technology to Industry Leaders: Hosted over **100 stakeholders** for live demonstrations at the Company's Innovation Center and Demonstration Plant during NAATBatt's annual meeting[7](index=7&type=chunk) - Strengthened Intellectual Property: Received allowance for a foundational U.S. patent protecting the Company's lithium-ion battery recycling process[7](index=7&type=chunk) - Enhanced Leadership Team: Completed CFO transition with the appointment of Eric West, formerly VP Finance[7](index=7&type=chunk) [Strategic Engagements](index=2&type=section&id=Strategic%20Engagements) Aqua Metals continues discussions with potential strategic partners, emphasizing collaboration to build domestic battery recycling and CAM production capacity in the U.S - Strategic Engagements: Aqua Metals continues discussions with potential strategic partners[5](index=5&type=chunk) - Collaboration Importance: The Company believes collaboration among industry participants is critical as the U.S. builds domestic battery recycling and CAM production capacity[5](index=5&type=chunk) - Market Positioning: Achievements position Aqua Metals not just to participate in the emerging U.S. market, but to help define it[8](index=8&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides essential corporate details, including investor communication channels, company profile, disclosure practices, and contact information [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Aqua Metals held a conference call on August 13, 2025, at 4:30 p.m. ET to discuss Q2 2025 results and corporate developments - Conference Call: Held on **August 13, 2025, at 4:30 p.m. ET** to discuss results and corporate developments[9](index=9&type=chunk) - Access: Live conference call accessible via webcast (https://event.webcasts.com/aqms) or investor relations website (https://ir.aquametals.com/), or by dialing **877-407-9708** (toll-free) or **201-689-8259** (international)[9](index=9&type=chunk) - Replay: Available by dialing **877-407-9708** (toll-free) or **201-689-8259** (international) using passcode **13754150**, and on the investor relations section of the Aqua Metals website[10](index=10&type=chunk) [About Aqua Metals](index=4&type=section&id=About%20Aqua%20Metals) Aqua Metals, Inc. (NASDAQ: AQMS) is a Nevada-based pioneer in sustainable metals recycling, utilizing its patented AquaRefining™ technology - Company Overview: Aqua Metals, Inc. (NASDAQ: AQMS) is a pioneer in sustainable metals recycling with its patented AquaRefining™ technology[11](index=11&type=chunk) - Focus: Commercializing sustainable, non-polluting lithium-ion battery recycling[11](index=11&type=chunk) - Mission: Closes the loop on critical minerals for clean energy technologies[11](index=11&type=chunk) - Location: Based in Reno, Nevada, with facilities in the Tahoe-Reno Industrial Center[11](index=11&type=chunk) [Aqua Metals Social Media](index=4&type=section&id=Aqua%20Metals%20Social%20Media) Aqua Metals uses its investor relations website and various social media platforms as official channels for disclosing material non-public information - Disclosure Channels: Utilizes its investor relations website (https://ir.aquametals.com) and social media accounts (Twitter, Threads, LinkedIn, YouTube) for disclosing material non-public information[12](index=12&type=chunk) - Compliance: Intends to continue using these platforms for complying with its disclosure obligations under Regulation FD[12](index=12&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor) This section contains forward-looking statements regarding Aqua Metals' plans, objectives, expectations, and intentions, cautioning readers about known and unknown risks - Forward-Looking Statements: The press release contains forward-looking statements concerning Aqua Metals, Inc.'s plans, objectives, expectations, and intentions[13](index=13&type=chunk) - Key Areas: Includes ability to commercialize profitable metal recycling, intent to develop ARC facility, ability to enter successful collaborations, and ability to maintain Nasdaq listing[13](index=13&type=chunk) - Risks and Uncertainties: Involve known and unknown risks that could cause actual results to differ materially, such as lack of commercial-scale operation, absence of definitive agreements, funding risks for ARC facility, and risks to Nasdaq listing[13](index=13&type=chunk) - Disclaimer: Aqua Metals cautions readers not to place undue reliance on forward-looking statements and disclaims any obligation to update or revise such statements, except as required by law[13](index=13&type=chunk) [Contact Information](index=4&type=section&id=Contact%20Information) Provides contact details for investor relations, handled by FNK IR, and media inquiries, handled directly by Aqua Metals - Investor Relations Contact: - Bob Meyers & Rob Fink (FNK IR) - Phone: **646-878-9204** - Email: aqms@fnkir.com[14](index=14&type=chunk) - Media Contact: - David Regan (Aqua Metals) - Phone: **415-336-3553** - Email: david.regan@aquametals.com[14](index=14&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Aqua Metals' condensed consolidated balance sheets and statements of operations for the second quarter and year-to-date periods of 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Aqua Metals reported a significant decrease in total assets and liabilities, primarily due to asset sales and debt elimination Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change (vs. Dec 31, 2024) | | :-------------------------------- | :-------------- | :---------------- | :------------------------ | | Cash and cash equivalents | $1,933 | $4,079 | -$2,146 | | Total current assets | $2,369 | $4,644 | -$2,275 | | Property and equipment, net | $4,984 | $16,473 | -$11,489 | | Total non-current assets | $6,875 | $21,721 | -$14,846 | | **Total assets** | **$9,244** | **$26,365** | **-$17,121** | | Total current liabilities | $3,633 | $8,182 | -$4,549 | | Notes payable, current portion | $— | $3,230 | -$3,230 | | **Total liabilities** | **$4,126** | **$10,121** | **-$5,995** | | Total stockholders' equity | $5,118 | $16,244 | -$11,126 | | Accumulated deficit | $(262,855) | $(247,770) | $(15,085) | - Significant decrease in total assets from **$26,365 thousand** to **$9,244 thousand**, primarily driven by a reduction in property and equipment, net, and other non-current assets[16](index=16&type=chunk) - Total liabilities decreased substantially from **$10,121 thousand** to **$4,126 thousand**, reflecting the elimination of notes payable[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, Aqua Metals reported an increased net loss of $(6,770) thousand, primarily due to impairment and loss on disposal of property, plant and equipment Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Plant operations | $776 | $2,373 | $1,501 | $4,582 | | Research and development cost | $295 | $363 | $631 | $951 | | Impairment and loss on disposal of PP&E | $3,765 | $— | $9,012 | $— | | General and administrative expense | $2,195 | $3,426 | $4,571 | $6,421 | | **Total operating expense** | **$7,031** | **$6,162** | **$15,715** | **$11,954** | | Loss from operations | $(7,031) | $(6,162) | $(15,715) | $(11,954) | | Interest expense | $(245) | $(84) | $(647) | $(190) | | Loss on extinguishment of debt | $(825) | $— | $(825) | $— | | Interest and other income | $497 | $99 | $777 | $245 | | Change in fair value of warrant liability | $836 | $— | $1,327 | $— | | Total other income, net | $263 | $15 | $632 | $55 | | Loss before income tax expense | $(6,768) | $(6,147) | $(15,083) | $(11,899) | | Income tax expense | $2 | $3 | $2 | $3 | | **Net loss** | **$(6,770)** | **$(6,150)** | **$(15,085)** | **$(11,902)** | | Weighted average shares outstanding | 910,129 | 618,965 | 860,146 | 584,619 | | **Basic and diluted net loss per share** | **$(7.44)** | **$(9.94)** | **$(17.54)** | **$(20.36)** | - Q2 2025 Net Loss: **$(6,770) thousand**, an increase from **$(6,150) thousand** in Q2 2024[18](index=18&type=chunk) - Q2 2025 Basic and Diluted Net Loss Per Share: **$(7.44)**, an improvement from **$(9.94)** in Q2 2024, despite a higher net loss, due to increased weighted average shares outstanding[18](index=18&type=chunk) - Total Operating Expense (Q2 2025): Increased to **$7,031 thousand** from **$6,162 thousand** in Q2 2024, primarily due to **$3,765 thousand** in impairment and loss on disposal of property, plant and equipment[18](index=18&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ 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 001-41347 EXPION360 INC. (Exact name of registrant as specified in its charter) Nevada (state or other jurisdiction of incorporation or organization) 81-2701049 (IRS ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of August 2025 Commission File Number: 001-38353 PagSeguro Digital Ltd. (Name of Registrant) Conyers Trust Company (Cayman) Limited, Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands (Address of Principal Executive Office) Indicate by check mark whether the registrant fil ...