UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Barings BDC, Inc. For the transition period from to Commission file number 814-00733 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organ ...

Financial Performance - Net income attributable to common shareholders for Q4 2025 was $123.8 million, or $0.33 per diluted share, a slight increase from $123.2 million, or $0.33 per diluted share, in Q4 2024[8] - For the full year 2025, net income attributable to common shareholders was $439.0 million, or $1.18 per diluted share, up from $398.5 million, or $1.08 per diluted share, in 2024[15] - Funds from Operations (FFO) attributable to common share and unit holders for the year ended December 31, 2025, was $756.9 million, an increase of 9.6% from $690.7 million in 2024[53] - Net income for the trailing twelve months ended December 31, 2025, was $513,392,000, showing an increase from $468,142,000 for the same period in 2024[134] Revenue Growth - Rents and other single-family property revenues increased by 4.2% to $455.0 million in Q4 2025, compared to $436.6 million in Q4 2024, driven primarily by higher rental rates[9] - Rents and other single-family property revenues for the full year 2025 increased by 7.0% to $1.85 billion, compared to $1.73 billion in 2024, attributed to a growth in the average occupied portfolio[16] - Core revenues for 2025 reached $1,609,010,000, up from $1,507,266,000 in 2024, indicating a growth of approximately 6.8%[44] - Core revenues for Q4 2025 reached $402,928, an increase from $387,485 in Q4 2024, representing a growth of 3.7% year-over-year[48] Operating Income - Core Net Operating Income (Core NOI) from the total portfolio rose by 5.0% to $268.3 million in Q4 2025, compared to $255.6 million in Q4 2024, supported by a 4.0% increase in core revenues[10] - Same-Home Core NOI for 2025 is reported at $235,121,000, an increase from $227,197,000 in 2024[44] - Core NOI for Q4 2025 was $268,272, up from $255,561 in Q4 2024, indicating a growth of 4.9% year-over-year[48] - The Core NOI margin improved to 66.6% in Q4 2025, compared to 66.0% in Q4 2024[48] Expenses - Total property operating expenses for 2025 amounted to $663,954,000, an increase from $625,883,000 in 2024[44] - General and administrative expenses for 2025 totaled $83,006,000, slightly down from $83,590,000 in 2024[44] - Property management expenses for the year ended December 31, 2025, totaled $134,808,000, compared to $129,321,000 in 2024, indicating an increase of approximately 4.3%[143] Debt and Financing - As of December 31, 2025, the company had total outstanding debt of $5.2 billion, with a weighted-average interest rate of 4.5%[24] - Total debt increased to $5,160,000 in Q4 2025 from $5,075,391 in Q4 2024, representing a rise of 1.7%[48] - The Total Debt to Total Capitalization ratio was 27.5% in Q4 2025, up from 24.1% in Q4 2024[48] - The company holds $360,000 in floating rate debt, representing 7.0% of total debt[75] Shareholder Returns - The company declared a distribution of $0.30 per common share for Q4 2025, consistent with the previous quarter and an increase from $0.26 in Q4 2024[48] - The company repurchased 4.7 million Class A common shares at an average price of $31.77 per share for a total of $150.0 million in Q4 2025[23] Future Outlook - The company expects Core FFO for 2026 to be in the range of $1.89 to $1.95 per share, reflecting a growth of 1.1% to 4.3%[28] - The company plans to deliver 1,300 to 1,500 wholly-owned development properties in 2026, with an investment of $500 to $600 million[28] - Same-Home core revenues growth for 2026 is anticipated to be between 1.25% and 3.25%[108] Property Portfolio - The company owned over 61,000 single-family properties as of December 31, 2025, across various regions in the United States[37] - The company reported a total of 61,479 properties owned as of December 31, 2025, which includes 52,757 same-home properties and 4,304 stabilized properties[56] - The average occupancy rate for Q4 2025 was 95.0%, down from 95.3% in Q4 2024[69] Conference and Communication - A conference call is scheduled for February 20, 2026, to discuss the financial results for the quarter and full year ended December 31, 2025[35] - Investor relations can be contacted at (855) 794-2447 or via email at investors@amh.com[162] - Media relations are available at (855) 774-4663 or (702) 847-7800, with inquiries directed to media@amh.com[162]

Financial Performance - For the three months ended January 31, 2026, Copart reported revenue of $1.1 billion, a decrease of $41.6 million or 3.6% year-over-year[4] - Gross profit for the same period was $492.8 million, down $32.7 million or 6.2% compared to the previous year[4] - Net income attributable to Copart, Inc. for the quarter was $350.7 million, reflecting a decrease of $36.7 million or 9.5% year-over-year[4] - For the six months ended January 31, 2026, total revenue was $2.3 billion, a decrease of $33.4 million or 1.4% from the same period last year[5] - The company reported a fully diluted earnings per share of $0.36 for the quarter, down 10.0% from $0.40 in the prior year[4] - Operating income for the three months ended January 31, 2026, was $388.7 million, a decline of 8.8% compared to the same period last year[11] - Total service revenues and vehicle sales for the three months ended January 31, 2026, reached $1,121,674,000, a decrease from $1,163,316,000 in the same period of 2025[19] - Operating income for the six months ended January 31, 2026, was $819,405,000, compared to $832,578,000 for the same period in 2025, indicating a decline[19] - Service revenues for the six months ended January 31, 2026, totaled $1,943,896,000, down from $1,977,617,000 in the same period of 2025[19] Cash and Assets - Cash, cash equivalents, and restricted cash increased to $5.1 billion as of January 31, 2026, from $2.8 billion as of July 31, 2025[14] - Total assets as of January 31, 2026, were $10.6 billion, up from $10.1 billion as of July 31, 2025[14] - Net cash provided by operating activities for the six months ended January 31, 2026, was $662,753,000, slightly up from $660,401,000 in 2025[17] - Cash, cash equivalents, and restricted cash at the end of the period increased to $5,101,820,000 from $3,338,909,000 year-over-year[17] - The company experienced a net increase in cash of $2,321,289,000 for the six months ended January 31, 2026, compared to $1,824,798,000 in 2025[17] Vehicle Sales and Operations - The company sold over 4 million units in the last year, maintaining its position as a global leader in online vehicle auctions[7] - Copart's interest income increased by 22.7% to $50.0 million for the quarter, compared to $40.7 million in the previous year[11] - Net income for the six months ended January 31, 2026, was $752,177,000, compared to $747,717,000 for the same period in 2025, reflecting a slight increase[17] - Vehicle sales for the six months ended January 31, 2026, amounted to $332,808,000, compared to $332,528,000 in the same period of 2025, showing a marginal increase[19] Expenses - General and administrative expenses for the six months ended January 31, 2026, were $210,406,000, slightly up from $205,080,000 in the same period of 2025[19] - The company reported a net cash provided by investing activities of $1,858,621,000 for the six months ended January 31, 2026, compared to $1,127,508,000 in 2025[17]

Revenue Performance - Revenues for Q4 2025 were $469.1 million, an increase of $41.6 million or 9.7% compared to Q4 2024, driven by acquisitions and price growth [4]. - Fiscal year 2025 revenues reached $1.837 billion, up $279.6 million or 18.0% from fiscal year 2024 [6]. - Revenues for the three months ended December 31, 2025, increased to $469.1 million, up 9.7% from $427.5 million in the same period of 2024 [25]. - Total revenues for the three months ended December 31, 2025, were $573.297 million, an increase from $518.419 million in the same period of 2024, representing a growth of 10.6% [40]. Income and Profitability - Net income for Q4 2025 was $(2.5) million, a decrease of $(7.4) million compared to Q4 2024, while adjusted net income was $18.9 million, down 15.1% [7]. - Operating income for the twelve months ended December 31, 2025, was $63.7 million, a decrease of 12.5% compared to $72.8 million in 2024 [25]. - Net loss for the three months ended December 31, 2025, was $2.5 million, compared to a net income of $4.9 million in the same period of 2024 [25]. - Adjusted net income for the twelve months ended December 31, 2025, was $80,634,000, an increase from $78,840,000 in 2024, reflecting a growth of approximately 2% [33]. - Adjusted diluted earnings per common share for the twelve months ended December 31, 2025, was $1.27, compared to $1.32 in 2024, indicating a slight decrease of about 3.8% [33]. Cash Flow and Financial Position - Net cash provided by operating activities for fiscal year 2025 was $329.8 million, up $48.4 million or 17.2% from fiscal year 2024 [12]. - Cash flows from operating activities for the twelve months ended December 31, 2025, were $329.8 million, up from $281.4 million in 2024 [30]. - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $329,776,000, up from $281,355,000 in 2024, representing an increase of approximately 17.2% [35]. - Adjusted Free Cash Flow for fiscal year 2025 was $179.9 million, an increase of $21.6 million or 13.6% from fiscal year 2024 [12]. - Adjusted free cash flow for the twelve months ended December 31, 2025, was $179,913,000, compared to $158,309,000 in 2024, marking a growth of about 13.7% [35]. - Cash, cash equivalents, and restricted cash decreased to $216.9 million as of December 31, 2025, from $383.3 million at the end of 2024 [30]. Acquisitions and Growth Strategy - The company acquired nine businesses in fiscal year 2025, contributing approximately $115 million in annualized revenue, with an additional $30 million from the Mountain State Waste acquisition [6]. - The company plans to continue focusing on acquisitions to expand its geographic footprint and enhance shareholder value [3]. - The company incurred acquisition-related expenses of $24.2 million for the twelve months ended December 31, 2025, compared to $24.9 million in 2024 [32]. - The company incurred acquisition expenses of $15,000,000 in fiscal year 2026, highlighting ongoing strategic growth initiatives [38]. Guidance and Future Outlook - Guidance for fiscal year 2026 includes revenues between $1.970 billion and $1.990 billion, and adjusted EBITDA between $455 million and $465 million [17]. - The company expects adjusted EBITDA for fiscal year 2026 to be between $455,000,000 and $465,000,000, reflecting a strong operational outlook [38]. - Estimated net cash provided by operating activities for fiscal year 2026 is projected to be between $370,000,000 and $380,000,000, indicating robust cash generation capabilities [38]. - Capital expenditures for fiscal year 2026 are estimated at $260,000,000, which includes acquisition-related capital expenditures of $65,000,000 [38]. Asset and Liability Management - Total assets as of December 31, 2025, were $3.3 billion, compared to $3.2 billion as of December 31, 2024 [27]. - Current liabilities decreased to $293.9 million as of December 31, 2025, from $307.3 million in 2024 [27]. Operational Performance - Adjusted EBITDA for Q4 2025 was $107.0 million, an increase of $12.0 million or 12.7% from Q4 2024 [7]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $422.8 million, representing an increase of 17.3% from $360.6 million in 2024 [32]. - Solid waste pricing increased by 4.9% in fiscal year 2025, with collection prices growing by 5.0% and disposal prices by 4.9% [6]. - Solid waste operations contributed $33.801 million to revenue growth, accounting for 9.9% of the total increase, while Resource Solutions operations added $7.768 million, representing a 9.1% growth [41]. - The company reported a gross revenue of $331.252 million from collection services for the three months ended December 31, 2025, compared to $292.637 million in 2024, marking a growth of 13.2% [40]. - Disposal services generated $138.062 million in gross revenue for the three months ended December 31, 2025, up from $131.329 million in 2024, an increase of 5.3% [40]. - The company experienced a solid waste price increase contributing $15.174 million to revenue growth, which is 4.4% of the total solid waste operations growth [41]. - Total solid waste volume decreased by $3.709 million, representing a decline of 1.1% in the same period [41]. Capital Expenditures - Acquisition capital expenditures for the three months ended December 31, 2025, were $12.127 million, compared to $24.006 million in the same period of 2024, indicating a decrease of 49.5% [42]. - Total capital expenditures for the twelve months ended December 31, 2025, reached $245.071 million, up from $203.227 million in 2024, reflecting a year-over-year increase of 20.6% [42]. - Replacement capital expenditures for the three months ended December 31, 2025, were $39.442 million, down from $47.484 million in 2024, a decrease of 16.9% [42].

Washington, D.C .20549 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ FORM 10-K (Mark One) Commission File Number: 001-38233 CARGURUS, INC. (Exact name of Registrant as specified in its charter) De ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Contacts: Johanna Schmitt Mark Stoutenberg Media Relations Investor Relations Akamai Technologies Akamai Technologies AkamaiPR@akamai.com mstouten@akamai.com AKAMAI REPORTS FOURTH QUARTER 2025 AND FULL-YEAR 2025 FINANCIAL RESULTS Fourth quarter highlights Full-year highlights CAMBRIDGE, Mass. – February 19, 2026 – Akamai Technologies, Inc. (NASDAQ: AKAM), the cybersecurity and cloud computing company that powers and protects business online, today reported financial result ...

Financial Performance - Total revenue for Q4 2025 was $71.1 million, a decrease of 1.8% compared to Q4 2024[3] - Adjusted EBITDA for Q4 2025 was $22.4 million, down 4.0% from the previous year, with an Adjusted EBITDA margin of 31.5%[12] - Net income attributable to RE/MAX Holdings for Q4 2025 was $1.4 million, with GAAP EPS of $0.07, compared to $5.8 million and $0.31 in Q4 2024[11] - Revenue excluding Marketing Funds for Q4 2025 was $53.6 million, a decrease of 0.4% year-over-year, driven by negative organic revenue growth of 0.4%[6] - Continuing franchise fees decreased to $27,077,000 in Q4 2025 from $29,788,000 in Q4 2024, representing a decline of 9.1%[28] - Net income attributable to RE/MAX Holdings, Inc. for Q4 2025 was $1,440,000, down from $5,805,000 in Q4 2024, a decrease of 75.2%[28] - Operating income increased to $9,318,000 in Q4 2025 compared to $4,271,000 in Q4 2024, reflecting a growth of 118.8%[28] - Adjusted EBITDA for the year ended December 31, 2025, was $93,721 million, with an adjusted EBITDA margin of 32.1%[36] - Adjusted EBITDA for the year ended December 31, 2025, was $93,721 million, a decrease of 4.0% from $97,700 million in 2024[51] Agent Count and Market Presence - Total agent count increased by 1.4% to 148,660 agents, while U.S. and Canada combined agent count decreased by 4.6% to 72,977 agents[5] - The total agent count in the U.S. and Canada decreased to 72,977 as of December 31, 2025, down from 76,457 in the previous year, reflecting a decline of approximately 4.8%[34] Cash and Liquidity - Cash and cash equivalents as of December 31, 2025, were $118.7 million, an increase of $22.1 million from the previous year[14] - Cash and cash equivalents rose to $118,736,000 as of December 31, 2025, up from $96,619,000 in 2024, an increase of 22.9%[30] - The company’s cash, cash equivalents, and restricted cash at the end of the period increased to $193,068 million from $169,287 million at the beginning of the period[32] Future Guidance - For Q1 2026, the company expects revenue in the range of $69.0 million to $74.0 million and Adjusted EBITDA between $14.0 million and $17.0 million[16] - For the full year 2026, the company anticipates revenue between $285.0 million and $305.0 million, with Adjusted EBITDA in the range of $90.0 million to $100.0 million[16] - The company anticipates continued focus on innovation and enhancing its value proposition in the upcoming quarters[24] - The company anticipates that future Adjusted EBITDA will be impacted by similar charges and costs as in prior quarters, affecting financial guidance[60] Expenses and Liabilities - Total operating expenses for Q4 2025 were $61.8 million, a decrease of 9.4% compared to $68.2 million in Q4 2024[8] - Total liabilities decreased to $611,463,000 in 2025 from $639,988,000 in 2024, a reduction of 4.5%[30] Shareholder Returns - The company paid dividends totaling $498 million to Class A common stockholders in 2025, compared to $13,553 million in 2023[32] Cash Flow and Investments - Cash flows from operating activities for the year ended December 31, 2025, were $40,878 million, compared to $28,264 million in 2023, representing a growth of 44.7%[32] - The company reported a net cash used in investing activities of $7,782 million for the year ended December 31, 2025, an increase from $5,643 million in 2023[32] - Cash flow from operations for the year ended December 31, 2025, was $40,878 million, a decrease of 31.6% compared to $59,652 million in 2024[51] - Adjusted free cash flow for the year ended December 31, 2025, was $31,840 million, down 37.5% from $51,002 million in 2024[51] - Unencumbered cash generated for the year ended December 31, 2025, was $27,240 million, a decline of 41.3% compared to $46,402 million in 2024[51] Bad Debt and Interest Expense - The company incurred interest expense of $31,700 million for the year ended December 31, 2025, down from $36,258 million in 2024[36] - The company recorded a bad debt expense of $3,278 million in 2025, compared to $6,784 million in 2023, reflecting a decrease of 51.6%[32] Share Count - The weighted average shares of Class A common stock outstanding increased to 20,078,818 in Q4 2025 from 18,921,229 in Q4 2024[28] - Total diluted pro forma weighted average shares outstanding increased to 33,463,932 in Q4 2025 from 32,545,071 in Q4 2024[48] - Total basic pro forma weighted average shares outstanding rose to 32,638,418 in Q4 2025 from 31,480,829 in Q4 2024[48] - The dilutive effect of unvested restricted stock units was 825,514 for Q4 2025, compared to 1,064,242 in Q4 2024[48]

Financial Performance - Harmonic reported Q4 2025 net revenue of $157.3 million, with a full-year revenue of $570.8 million[4]. - Total revenue for the year ended December 31, 2025, was $360.52 million, down 26.2% from $488.20 million in 2024[38]. - Total GAAP revenue for the twelve months ended December 31, 2024, was $488.2 million, with a gross profit of $240.1 million, resulting in a gross margin of 49.2%[45]. - The company reported a basic loss per share of $0.49 for Q4 2025, compared to earnings of $0.33 per share in Q4 2024[32]. - For the year ended December 31, 2025, Harmonic Inc. reported a net loss of $43.31 million compared to a net income of $39.22 million in 2024[34]. - The company incurred $57.52 million in goodwill impairment charges, significantly impacting net income[34]. - Diluted earnings per share (EPS) for the year was $0.01 under GAAP and $0.23 under non-GAAP[43]. - For the three months ended December 31, 2025, GAAP income from continuing operations was $219, with a net income loss of $54.8 million[48]. - Non-GAAP income for the three months ended December 31, 2025, was $52.432 million, which is 23.6% of total revenue[48]. Revenue Segmentation - The Americas contributed $320.57 million, accounting for 89% of total revenue, while EMEA and APAC contributed $33.89 million (9%) and $6.06 million (2%), respectively[38]. - The top two customers represented 62% of total revenue, down from 81% in the previous year, indicating a diversification in the customer base[38]. Bookings and Backlog - The company achieved a record quarterly Broadband bookings of $346.9 million, resulting in a book-to-bill ratio of 3.5 for Q4 2025[3][8]. - Backlog and deferred revenue increased by 73% year-over-year to $573.8 million, up from $332.3 million[4][6]. Cash and Liquidity - Harmonic's cash position improved to $124.1 million as of December 31, 2025, compared to $101.5 million the previous year[6]. - Cash and cash equivalents increased to $124.46 million from $101.79 million in 2024, reflecting a strong liquidity position[34]. - The company generated net cash provided by operating activities of $107.97 million, an increase of 74.5% from $61.92 million in the previous year[34]. Expenses - Research and development expenses for the year ended December 31, 2025, were $74.958 million, an increase of 3.3% from $72.574 million in 2024[32]. - Selling, general and administrative expenses for the year ended December 31, 2025, were $82.755 million, up from $79.169 million in 2024[32]. - The total operating expense for the twelve months ended December 31, 2024, was $165.373 million, which is 33.9% of total revenue[45]. - The company experienced a significant impairment of goodwill, with charges of $57.521 million for the three months ended December 31, 2025[48]. Future Guidance - Q1 2026 GAAP financial guidance estimates net revenue between $100 million and $105 million, with a gross margin of 53.0% to 54.3%[9]. - For FY 2026, Harmonic projects net revenue between $440 million and $480 million, with a gross margin of 50.5% to 52.5%[11]. - Q1 2026 GAAP revenue guidance is projected to be between $100 million and $105 million, with Non-GAAP revenue expected to be in the same range[50]. - FY26 GAAP revenue guidance is estimated to be between $440 million and $480 million, while Non-GAAP revenue is also projected to be in the same range[50]. - Q1 2026 GAAP gross profit is expected to be between $53 million and $57 million, with Non-GAAP gross profit projected between $54 million and $58 million[50]. - FY26 GAAP gross profit guidance is between $222 million and $252 million, while Non-GAAP gross profit is expected to be between $224 million and $254 million[50]. - Q1 2026 GAAP diluted earnings per share is projected to be between $0.04 and $0.04, while Non-GAAP diluted earnings per share is expected to be between $0.11 and $0.12[50]. - FY26 GAAP diluted earnings per share guidance is estimated to be between $0.27 and $0.43, with Non-GAAP diluted earnings per share projected between $0.46 and $0.63[50]. - Total operating expenses for Q1 2026 are expected to be between $46 million and $48 million, while Non-GAAP operating expenses are projected to be between $36 million and $38 million[50]. - Total operating expenses for FY26 are estimated to be between $176 million and $181 million, with Non-GAAP operating expenses expected to be between $150 million and $155 million[50]. Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $12.1 million, while the full-year adjusted EBITDA was $47.3 million[4][8]. - Adjusted EBITDA for the twelve months ended December 31, 2025, was $47.288 million, with total revenue of $360.523 million, resulting in an adjusted EBITDA margin of 13.1%[49]. - Stock-based compensation for the twelve months ended December 31, 2025, amounted to $21.641 million, contributing to total adjustments of $97.191 million[48]. - Harmonic Inc. reported a significant increase in stock-based compensation expenses, totaling $31.88 million in 2025 compared to $28.07 million in 2024[34].

Exhibit 99.1 (3) Based on weighted average shares outstanding during the period of 105,200,841. Investment Portfolio and Balance Sheet Highlights | Income Statement | Three Months Ended December 31, 2025 | | Three Months Ended September 30, 2025 | | Full Year Ended December 31, 2025 | | | --- | --- | --- | --- | --- | --- | --- | | | | Per | | Per | | Per | | (dollars in millions, except per share data) | Total Amount | (1) Share | Total Amount | (2) Share | Total Amount | (3) Share | | Net investment incom ...

Company Overview - As of December 31, 2025, Capital One Financial Corporation was the largest issuer of credit cards in the U.S. based on outstanding credit card loan balances [16]. - Capital One had approximately 76,300 employees worldwide as of December 31, 2025, focusing on recruitment, development, and retention strategies [124]. Acquisitions and Mergers - The acquisition of Discover Financial Services was completed on May 18, 2025, with a purchase consideration of $51.8 billion and total identifiable assets acquired valued at $168.6 billion [23]. - Capital One plans to acquire Brex Inc. for $5.15 billion, consisting of approximately $2.58 billion in cash and about 10.6 million shares of common stock [26]. - The Global Payment Network, acquired through the Discover merger, enhances Capital One's transaction processing capabilities and customer base [21]. Financial Performance - Capital One's consolidated total net revenues are primarily derived from lending activities, with significant contributions from non-interest income such as discount and interchange income [30]. - The Credit Card segment includes domestic consumer card lending and international card businesses in the U.K. and Canada [36]. - The Consumer Banking segment encompasses deposit gathering and lending activities for consumers and small businesses, including auto lending [36]. Regulatory Compliance - Capital One's operations are subject to extensive regulation and supervision by U.S. federal and state laws, impacting its business and organizational structure [42]. - The Company is classified as a Category III institution under the Basel III Capital Rules, with total consolidated assets between $250 billion and $700 billion [52]. - The minimum common equity Tier 1 (CET1) capital ratio required is 4.5%, with a Tier 1 capital ratio of 6.0% and a total capital ratio of 8.0% [54]. - The Company's stress capital buffer requirement is set at 4.5% for the period from October 1, 2025, to September 30, 2026 [59]. - The Bank's minimum capital requirements, including its capital conservation buffer, are 7.0% for CET1 capital, 8.5% for Tier 1 capital, and 10.5% for total capital ratios [60]. - The Federal Reserve's capital plan rule requires the Company to submit a capital plan annually, detailing planned capital actions over a nine-quarter horizon [74]. - The Company is subject to supervisory stress testing requirements, including the Dodd-Frank Act stress tests, to assess capital sufficiency during adverse economic conditions [77]. - The Basel III Finalization Proposal, released in July 2023, aims to revise capital rules for institutions with total assets of $100 billion or more [66]. - The Market Risk Rule requires adjustments to risk-based capital ratios to reflect market risk in the trading book, applicable to institutions with trading assets and liabilities equal to 10% or more of total assets or $1 billion or more [65]. - The capital conservation buffer for the Bank is fixed at 2.5%, with a countercyclical capital buffer currently set at 0% [60]. - The Company is not classified as a Global Systemically Important Bank (G-SIB) and therefore is not subject to the G-SIB Surcharge [56]. - The Company and the Bank are required to maintain a liquidity coverage ratio (LCR) of at least 100% of projected adjusted net cash outflows over a 30-day period [82]. - As a Category III institution, the Company and the Bank's total net cash outflows are adjusted by an outflow percentage of 85% [83]. - The net stable funding ratio (NSFR) requires the Company and the Bank to maintain available stable funding of at least 85% of their required stable funding [84]. - The Company is subject to minimum liquidity standards set by the Federal Reserve and OCC, including conducting internal liquidity stress tests [85]. - The FDIC has finalized a rule to implement a special assessment to recover losses to the Deposit Insurance Fund (DIF) due to the protection of uninsured depositors, with a quarterly rate of 3.36 basis points starting in Q2 2024 [98]. - The Company is required to submit a resolution plan every three years to the Federal Reserve and FDIC, with the next full submission due by July 1, 2026 [89]. - The Federal Banking Agencies proposed a rule requiring the Company to maintain a minimum outstanding eligible long-term debt amount of no less than 6% of total risk-weighted assets [92]. - The Company must comply with the Volcker Rule, which prohibits proprietary trading and certain investments in covered funds [104]. - The Bank's consumer lending activities are regulated under various federal laws, including the Truth in Lending Act and the Equal Credit Opportunity Act [106]. - The FDIC has established a plan to restore the DIF reserve ratio to meet or exceed 1.35% by September 30, 2028 [97]. - The Bank earns interchange fees from debit cards issued on networks not owned by the Company, subject to Regulation II, which limits fees for issuers with over $10 billion in assets [108]. - In 2023, the Federal Reserve proposed amendments to Regulation II that could lower the cap on debit interchange fees, potentially impacting revenue from four-party networks [109]. - The Bank is registered as a swap dealer with the CFTC, subjecting it to additional regulatory requirements regarding swaps and derivatives activities [121]. Risk Management - Capital One is facing risks related to the integration of the Discover transaction, which may incur substantial expenses and could take longer to realize anticipated benefits [139]. - The company is monitoring changes in the macroeconomic environment, including inflation, geopolitical conflicts, and potential recessions, which could impact its operations and results [139]. - Fluctuations in interest rates and their effect on funding and liquidity sources are critical factors for the company's financial health [139]. - The company is experiencing increases in credit losses and delinquencies, which may lead to inadequate reserves if expected losses are incorrectly estimated [139]. - Capital One is focused on maintaining adequate capital and liquidity levels to comply with revised requirements, which is essential for returning capital to stockholders [139]. - The company is addressing risks related to cyber-attacks and security incidents that could disrupt operations and damage reputation [139]. - Compliance with evolving domestic and foreign laws, particularly regarding privacy and data protection, remains a priority for the company [139]. Strategic Initiatives - The company is committed to executing its strategic initiatives and operational plans to enhance its market position [139]. - Capital One is adapting its operational and technological infrastructure to meet the demands of its business environment [139]. - The company is working to create a strong base of network licensees to achieve meaningful global card acceptance [139]. Technology and Innovation - The Company leverages technology, including cloud and AI, to improve operational efficiency and reduce costs [130]. - Capital One relies on third-party service providers, such as AWS and TSYS, for cloud infrastructure and credit card processing services [132]. - The Company is subject to evolving privacy and data protection laws, including the Gramm-Leach-Bliley Act and the California Consumer Privacy Act, which may increase compliance costs [113]. - The Bank must comply with the Bank Secrecy Act and the Anti-Money Laundering Act, which require implementing risk-based compliance programs to prevent money laundering [116]. - Climate change risks are a focus for regulatory bodies, and new laws or regulations may impact the Company's operations in the future [123].