Financial Performance - The net loss for the year ending December 31, 2025, was $22.4 million, or $(0.29) per basic share, compared to a net loss of $13.0 million, or $(1.95) per basic share, for the year ending December 31, 2024[7]. - The total operating loss for the year ending December 31, 2025, was $15.3 million, an increase from $14.7 million for the year ending December 31, 2024, primarily due to the expansion of the CNSide operations team[6]. - The net loss increased significantly to $22,386 million in 2025 from $12,978 million in 2024, reflecting an increase of approximately 72%[21]. - The company reported a net loss per share of $0.29 for 2025, an improvement from a net loss per share of $1.95 in 2024[21]. Revenue and Expenses - The company recognized $5.2 million in grant revenue for the year ending December 31, 2025, compared to $5.8 million for the year ending December 31, 2024[6]. - Grant revenue decreased to $5,213 million in 2025 from $5,824 million in 2024, representing a decline of approximately 10.5%[21]. - Total operating expenses remained relatively stable at $20,511 million in 2025 compared to $20,519 million in 2024, showing a slight decrease of 0.04%[21]. - The company incurred research and development expenses of $8,379 million in 2025, down from $10,580 million in 2024, a decrease of about 20.8%[21]. Cash Position - The cash and investments balance was $13.1 million on December 31, 2025, compared to $3.6 million on December 31, 2024, indicating a significant increase in liquidity[6]. - Cash and cash equivalents at the end of the period increased to $8,758 million in 2025 from $76 million in 2024, marking a substantial increase[23]. - Net cash used in operating activities rose to $20,775 million in 2025, compared to $10,554 million in 2024, indicating an increase of about 96%[23]. - Financing activities generated a net cash inflow of $30,311 million in 2025, compared to $6,187 million in 2024, representing an increase of approximately 388%[23]. Future Outlook - The company expects research and development expenditures to increase in 2026 due to costs associated with the ReSPECT-LM clinical trial and manufacturing scale-up for REYOBIQ[8]. - The company anticipates general and administrative expenditures to increase in 2026 as it expands the CNSide commercial operations team, aiming for breakeven by 2027[9]. - The company plans to expand U.S. commercial payer coverage to over 150 million covered lives and secure a Medicare coverage pathway[12]. - The company aims to achieve over 1,250 annualized test orders and launch additional CSF tumor characterization assays to expand the CNSide platform[12]. Shareholder Information - The weighted average number of shares outstanding for basic common stock increased significantly to 77,804,612 in 2025 from 6,640,251 in 2024[21]. - Interest income decreased to $116 million in 2025 from $273 million in 2024, reflecting a decline of approximately 57.5%[21].

Financial Performance - Net sales decreased by $55.6 million or 17% to $278.6 million for the three months ended January 31, 2026, compared to $334.2 million in the same period last year, primarily due to a 30% decrease in per-unit avocado sales prices, partially offset by a 14% increase in avocado volume sold [88]. - Gross profit remained flat at $31.6 million for the three months ended January 31, 2026, with a gross profit margin increase of 190 basis points to 11.3% compared to 9.4% in the same period last year [93]. - Selling, general and administrative (SG&A) expenses increased by $6.9 million or 31% to $29.1 million, primarily due to transaction advisory costs of $7.0 million related to the Calavo acquisition [95]. - Interest expense decreased by $0.5 million or 23% to $1.7 million, attributed to lower average balances on the revolving line of credit and lower interest rates [97]. - Equity method income increased by $0.7 million or 88% to $1.5 million, primarily from earnings in the investment in Henry Avocado Corporation [99]. - The provision for income taxes decreased by $2.1 million or 66% to $1.1 million, primarily due to lower income before taxes in the current year, with an effective tax rate of 110% [105]. - For the three months ended January 31, 2026, the company reported a net loss of $0.1 million compared to a net income of $6.2 million for the same period in 2025 [107]. - Adjusted EBITDA for the three months ended January 31, 2026, was $18.5 million, an increase from $17.7 million in the same period last year [107]. Segment Performance - The company operates through three segments: Marketing & Distribution, International Farming, and Blueberries, with the majority of sales generated from fresh avocados [83][87]. - The Marketing & Distribution segment experienced a sales decline of $61.0 million or 21% due to avocado volume and price dynamics [112]. - International Farming segment sales increased by $1.4 million or 15% to $10.6 million for the three months ended January 31, 2026 [115]. - Blueberries segment sales rose by $4.4 million or 12% to $40.8 million, driven by a 9% increase in average per-unit sales price and a 3% increase in volume sold [116]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2026, were negative at $3.0 million, compared to negative $1.2 million in the same period last year [119]. - Capital expenditures for the three months ended January 31, 2026, totaled $11.9 million, down from $14.8 million in 2025, primarily for avocado orchard development and blueberry plant cultivation [120]. - The company expects total capital expenditures for fiscal 2026 to be approximately $40 million, focusing on International Farming and Blueberries segments [128]. - As of January 31, 2026, the company had cash and cash equivalents of $44.8 million, down from $64.8 million at the end of October 2025 [125]. Debt and Liabilities - As of January 31, 2026, the company's undiscounted cash liabilities related to leases were approximately $170.5 million, with $107.6 million attributed to long-term land leases in the International Farming and Blueberries segments [129]. - The outstanding borrowings on the syndicated debt facility totaled $100.2 million as of January 31, 2026 [130]. - The company entered into a Merger Agreement to acquire Calavo Growers, which will be financed through a combination of equity, new long-term debt borrowings, and cash on hand, including a $50 million increase in the revolving line of credit and $250 million of principal term loans [131]. Merger and Acquisition - The company entered into a merger agreement with Calavo Growers, Inc., with a total consideration of approximately $490 million, expected to close in the third fiscal quarter of 2026 [80][81]. - The merger is anticipated to enhance the company's position in the North American avocado category and provide entry into the prepared food sector, aiming for cost synergies and SG&A savings [81]. Operational Risks - The company faces various operational risks, including fluctuations in supply and demand, tariffs, and weather patterns, which significantly impact financial results [84].

Revenue Growth - Total revenue for Q4 FY 2026 increased 20% to $271.2 million, compared to $225.5 million in Q4 FY 2025[4] - Fiscal Year 2026 total revenue reached $1,001.3 million, a 22% increase from $821.5 million in FY 2025[10] - Total revenue for the twelve months ended January 31, 2026, was $1,001,278, representing a 22% increase from $821,461 in the previous year[39] - Guidance for Q1 FY 2027 revenue is projected between $276 million and $278 million, and for FY 2027 between $1.195 billion and $1.205 billion[6] Annualized Recurring Revenue (ARR) - Annualized recurring revenue (ARR) rose 22% to $1,119.1 million as of January 31, 2026[4] - Customers with ARR of $100,000 or more grew 18% to 1,667 as of January 31, 2026[4] - Annualized Recurring Revenue (ARR) is a key operating metric, reflecting the annualized revenue run rate from subscription and usage-based agreements, which is crucial for evaluating business performance[33] - The number of customers with ARR of $100,000 or more indicates market penetration, with a focus on Managed Service Providers and other entities purchasing on behalf of multiple companies[34] Profitability Metrics - GAAP gross margin was 73%, down from 75% in the previous year, while non-GAAP gross margin was 78%, down from 79%[4] - GAAP operating margin improved to (29)% from (36)%, and non-GAAP operating margin increased to 6% from 1%[4] - Gross profit for the same period was $742,101, up from $610,355, indicating a strong growth in profitability[39] - Non-GAAP gross profit for the twelve months ended January 31, 2026, reached $787,327,000, up from $651,581,000 in 2025, representing a growth of 20.8%[42] Operating Expenses and Losses - Operating expenses increased to $1,063,410 for the twelve months ended January 31, 2026, compared to $939,714 in the previous year, reflecting investments in research, sales, and marketing[39] - The net loss for the twelve months ended January 31, 2026, was $450,735, compared to a net loss of $288,441 in the prior year, highlighting ongoing challenges[39] - GAAP net loss for the three months ended January 31, 2026, was $110,232,000, compared to a net loss of $70,788,000 in the same period of 2025, indicating a 55.8% increase in losses year-over-year[44] Cash Flow and Financial Position - Cash, cash equivalents, and investments totaled $769.6 million as of January 31, 2026[4] - Cash provided by operating activities was $76,616 for the twelve months ended January 31, 2026, significantly higher than $33,728 in the previous year, indicating improved cash flow management[41] - Total assets increased to $2,438,102 as of January 31, 2026, compared to $2,406,625 in the previous year, reflecting growth in the company's financial position[37] - The company reported a total stockholders' equity of $1,437,145 as of January 31, 2026, down from $1,669,247, indicating a decrease in equity value[37] Future Outlook and Strategy - The company aims to balance topline growth with operational rigor to ensure sustainable, profitable growth at scale[3] - The company plans to continue focusing on expanding its customer base and enhancing its platform offerings to drive future growth[33] Cash Flow Metrics - Non-GAAP operating income guidance for Q1 FY 2027 is expected to be between $4 million and $6 million, and for FY 2027 between $110 million and $120 million[6] - Free cash flow for the twelve months ended January 31, 2026, was $51,891 million, a significant increase from $6,747 million in 2025[48] - Operating cash flow margin improved to 8% for the twelve months ended January 31, 2026, up from 4% in the previous year[48] - Free cash flow margin for the three months ended January 31, 2026, was -1%, an improvement from -4% in the same period of 2025[48]

Mergers and Acquisitions - The Company will merge with Burke & Herbert Financial Services Corp. on December 18, 2025, with shareholders receiving 0.1350 of a BHRB share for each share owned [211]. Financial Performance - Net income for the year ended December 31, 2025, was $33.5 million, or $0.90 per diluted share, representing an increase of 27.8% compared to $26.2 million, or $0.71 per diluted share, for the year ended December 31, 2024 [259]. - Noninterest income increased by $13.1 million, while interest and dividend income rose by $5.9 million for the year ended December 31, 2025 [260]. - Total shareholders' equity rose by $26.2 million, or 9.4%, from $280.2 million at December 31, 2024, to $306.4 million at December 31, 2025 [258]. - Net interest income increased by $4.4 million, or 4.37%, to $104.3 million for the year ended December 31, 2025, compared to $99.9 million for 2024 [265]. - Interest income rose to $164.6 million for the year ended December 31, 2025, up from $158.7 million in 2024, primarily due to an increase in average loans [266]. - Non-interest expenses rose by $529 thousand, or 0.70%, to $75.4 million for the year ended December 31, 2025, from $74.9 million in 2024 [272]. - Income tax expense totaled $9.1 million for the year ended December 31, 2025, compared to $7.4 million for 2024, with an effective tax rate of 21.3% [273]. Asset and Loan Growth - Total assets increased by $191.2 million, or 6.7%, to $3.07 billion as of December 31, 2025, driven by a 13.3% increase in loans receivable [231]. - Net loans receivable increased by $301.2 million, or 13.35%, from $2.25 billion in 2024 to $2.56 billion in 2025 [237]. - Total loans increased to $2.56 billion as of December 31, 2025, up from $2.26 billion in 2024, representing a growth of 13.3% [242]. - Total loans, including deferred costs and allowance for credit losses, reached $2.53 billion, reflecting a 13.27% increase compared to the previous year [237]. - Commercial real estate loans grew by $244.2 million, representing an 18.5% increase, from $1.32 billion at the end of 2024 to $1.56 billion at the end of 2025 [238]. - Non-owner occupied commercial real estate loans increased by $143.3 million, or 22.81%, contributing to a year-end balance of $771.5 million [238]. - Agriculture loans decreased by $6.1 million, or 9.05%, from $67.7 million in 2024 to $61.6 million in 2025 [237]. Deposits and Funding - Total deposits grew by $194.2 million, or 8.23%, from $2.36 billion at December 31, 2024, to $2.55 billion at December 31, 2025 [249]. - Demand, interest-bearing deposits increased by 25.4% to $658.5 million, while demand, noninterest-bearing deposits decreased by 8.3% to $603.7 million [249]. - The company reported total uninsured deposits of $954.9 million at December 31, 2025, up from $807.5 million at December 31, 2024 [253]. - Average interest-bearing demand deposits increased to $582.6 million with an average rate of 2.30% for the year ended December 31, 2025, compared to $476.7 million at 2.17% for 2024 [253]. - FHLB borrowings increased significantly to $115.0 million at December 31, 2025, compared to $10.0 million at December 31, 2024 [254]. - Certificates of deposit due within one year totaled $630.8 million, or 93.5% of total certificates of deposit, representing 24.7% of total deposits [276]. Credit Quality and Allowance for Losses - The allowance for credit losses increased by $5.2 million, or 19.82%, from $26.4 million in 2024 to $31.7 million in 2025 [237]. - Non-performing loans increased to $24.1 million, or 0.94% of total loans, compared to $16.7 million, or 0.74% in 2024 [244]. - The ratio of allowance for loan losses to total loans was 1.24% as of December 31, 2025, compared to 1.17% in 2024 [244]. - The provision for credit losses included a specific reserve of $5.0 million for a single commercial credit requiring full impairment [244]. - The balance of loan delinquencies increased by $8.8 million, with delinquencies as a percentage of total loans rising from 0.61% in 2024 to 0.89% in 2025 [244]. - Non-accrual loans represented 0.94% of total loans, with a specific reserve of $6.4 million required for loans individually assessed [246]. - The company experienced a net charge-off of $2.0 million due to the sale of a purchased credit-deteriorated (PCD) loan [249]. Economic Environment - The U.S. economy showed resilience with a real GDP growth of 2.1% year-over-year, despite challenges such as high mortgage rates affecting residential investment [222]. - The Federal Reserve cut interest rates to a range of 5.25% to 5.50% by the end of 2025, marking a significant policy adjustment to support economic growth [225]. - The S&P 500 index increased by 6.4% in 2025, reflecting a mixed but positive performance across broader sectors [223]. Risk Management and Projections - An immediate 25% increase in the projected U.S. civilian unemployment rate would raise the total calculated allowance by approximately $6.3 million, or 19.9%, to $38.0 million by December 31, 2025 [284]. - A 25% decrease in the projected U.S. GDP growth would also contribute to the increase in the allowance to $38.0 million by December 31, 2025 [284]. - Conversely, a 25% decrease in the U.S. civilian unemployment rate could lower the allowance by approximately $4.2 million, or 13.2%, to $27.5 million by December 31, 2025 [284]. - The allowance for credit losses may need to be increased under adverse conditions or assumptions, despite current evaluations indicating it is appropriate [286]. - Management reviews assumptions used in appraisals of collateral to ensure they reflect realizable amounts on related loans [285]. - Changes in economic factors may not occur at the same rate, potentially leading to inconsistencies in the model's estimations [284]. - The shortfall in loan measurement compared to recorded investment is recorded through the allowance for credit losses [286]. - Additional provisions for credit losses may be required if actual results differ from management estimates, impacting future earnings [286]. - Appraisals of property securing loans are critical for determining impairment and related allowances [285]. - The FOMC's projections are sourced from a quarterly Summary of Projections, influencing the model's estimations significantly [284].

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 AND EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38856 _________________________ PAGERDUTY, INC. _________________________ (Ex ...

Revenue Performance - Consolidated revenues for Q4 2025 were $290 million, an increase of $24 million or 9% compared to Q4 2024[3] - Full-year 2025 revenues reached $1.069 billion, up $26 million or 2% from 2024, with a foreign exchange impact of $11 million[4] - Advanced Materials & Chemicals (AM&C) revenues for Q4 2025 were $85 million, a 25% increase from $68 million in Q4 2024[3] - Total net revenues for Q4 2025 were $290 million, up 9% from $266 million in Q4 2024, driven by a 10.5% increase in sales revenue[24] - For the full year 2025, Kodak's total net revenues reached $1.069 billion, a 2.5% increase from $1.043 billion in 2024[26] Profitability - Gross profit for Q4 2025 was $67 million, representing a 31% increase from $51 million in Q4 2024[3] - Operational EBITDA for the full year 2025 was $62 million, an increase of $36 million or 138% compared to 2024[6] - Operational EBITDA for Q4 2025 was $22 million, representing a 144% increase from $9 million in Q4 2024[22] - The company reported a GAAP net loss of $128 million for the full year 2025, a decrease of $230 million from a net income of $102 million in 2024[5] - Kodak reported a net loss of $108 million for Q4 2025, a decrease of 515% compared to a net income of $26 million in Q4 2024[24] Cash Flow and Liquidity - Kodak ended 2025 with a cash balance of $337 million, an increase of $136 million from December 31, 2024[7] - Cash flow from operations increased by $487 million for the full year 2025 compared to 2024[5] - Kodak's cash flow from operating activities for Q4 2025 was $489 million, significantly higher than $4 million in Q4 2024[25] - Cash and cash equivalents increased from $301 million at the beginning of the period to $442 million at the end of 2025, marking a rise of 47%[29] - The company reported a cash proceeds of $618 million from the reversion of assets from the Kodak Retirement Income Plan in 2025[29] Debt and Liabilities - The company reduced its annual interest expense by approximately $40 million, strengthening its balance sheet[4] - Long-term debt decreased significantly from $466 million in 2024 to $208 million in 2025, a reduction of 55.4%[28] - Total liabilities decreased from $1,142 million in 2024 to $904 million in 2025, a decline of 20.9%[28] - Interest expenses remained stable at $15 million for both Q4 2025 and Q4 2024, indicating consistent debt servicing costs[24] Assets and Equity - Total assets decreased from $2,001 million in 2024 to $1,617 million in 2025, a decline of approximately 19.2%[28] - Total current assets rose from $595 million in 2024 to $841 million in 2025, an increase of 41.3%[28] - Equity decreased slightly from $641 million in 2024 to $614 million in 2025, a decline of 4.2%[28] Restructuring and Operational Initiatives - The company incurred restructuring costs of $21 million for the full year 2025, compared to $8 million in 2024, indicating increased efforts in operational restructuring[26] - The print business launched 14 new products in recent years, contributing to growth initiatives in the AM&C unit[4] - The company experienced a loss on early extinguishment of debt amounting to $7 million in Q4 2025, compared to no such loss in Q4 2024[24] - The company engaged in a net proceeds of $1 million from an ATM equity offering program in 2025[29]

Financial Performance - Total net sales for fiscal 2025 were $1,004.4 million, reflecting a decrease of 12.3% from $1,145.0 million in fiscal 2024[50]. - Proprietary brand sales in fiscal 2025 were $489.5 million, down 16.8% from $588.1 million in fiscal 2024[50]. - The company reported a net loss of $78.3 million for fiscal 2025, compared to a net loss of $102.7 million in fiscal 2024[183]. - Cash used in operating activities was $57.9 million in fiscal 2025, while cash provided was $46.7 million in fiscal 2024[183]. - The company incurred substantial losses and negative cash flow in recent fiscal years, indicating challenges in achieving consistent profitability[183]. - The company experienced a 23.3% decrease in global comparable retail store sales during fiscal 2025[120]. - Seasonal fluctuations significantly impact the company's net sales and operating income, particularly during the third and fourth quarters[123]. Strategic Initiatives - The Turnaround Plan includes three strategic pillars: driving profitable growth, optimizing the operating model, and building shareholder value[31]. - The company plans to enhance e-commerce capabilities in fiscal 2026, focusing on improving the end-to-end consumer experience and customer relationship management[62]. - The company plans to modernize point of sale expression and stabilize its e-commerce business through investments in search and navigation[32]. - The company aims to generate improved free cash flow from operations and strategically deploy capital for growth and debt reduction[34]. Market and Competition - The company faces intense competition from established brands in both traditional watches and smartwatches, impacting its market position[72]. - The company faces intense competition in the specialty retail and e-commerce industries, with competitors having greater financial and marketing resources[132]. - The company may face increased competition from online-only retailers, which could pressure margins and profitability[190]. Supply Chain and Operations - The company relies heavily on suppliers from China, which poses risks related to trade policies and potential supply chain disruptions[114]. - The company relies on third-party assembly factories in China, which poses risks related to production capacity and quality control[130]. - The company has been developing and implementing mitigation strategies in response to tariff impacts, including price increases and sourcing changes[77]. - The company’s distribution facilities must have adequate capacity to support e-commerce operations, and any disruptions could lead to customer dissatisfaction[105]. Financial Obligations and Debt - As of January 3, 2026, the company had $205.1 million of outstanding indebtedness, excluding $18.5 million of debt issuance costs and $8.8 million of original issuance discount[146]. - The company sold $150 million aggregate principal amount of 7.00% Senior Notes due 2026 on November 8, 2021[147]. - A Credit Agreement was entered into on August 13, 2025, providing financing commitments under a senior secured asset-based revolving credit facility in an aggregate principal amount of $150 million[148]. - The company completed an Exchange Offer and Rights Offering on November 13, 2025, resulting in the cancellation of all $150 million aggregate principal amount of Prior Notes outstanding[149]. - The company is subject to covenants that restrict its ability to incur additional debt, pay dividends, and conduct certain business operations[158]. - A material portion of the company's assets, including accounts receivable and inventory, are pledged to secure obligations under debt agreements, limiting their use for other financing[156]. Regulatory and Compliance Risks - The company is committed to ethical conduct and compliance with environmental laws, ensuring responsible operations throughout its supply chain[79]. - The company must navigate rapidly changing sustainability-related regulations, which could lead to increased costs and operational complexity[111]. - The company is subject to the internal control provisions of Section 404 of the Sarbanes-Oxley Act, which aims to provide reasonable assurance regarding the reliability of financial reporting[218]. - Discovery of a material weakness could adversely impact financial statements, discourage customers or suppliers, and lead to higher borrowing costs[219]. Tariffs and Trade Policies - Tariffs negatively impacted the company's gross margin by approximately 140 basis points during fiscal 2025, with potential future adverse effects if tariff levels remain high or volatile[77]. - Section 301 tariffs imposed on certain packaging and handbag products at an additional 25% since July 2018, and on handbag and wallet products at 10% raised to 25% from June 2019[199]. - New tariffs under Section 122 at a 10% ad valorem rate effective February 24, 2026, with potential increase to 15%[201]. - Potential price increases due to tariffs may lead to customer loss and harm operating performance[203]. Cybersecurity and Data Management - The company maintains a cybersecurity risk management program integrated into its broader enterprise risk management framework[222]. - Risk-based assessments of information systems and applications are conducted, prioritizing identified risks based on likelihood and potential impact[223]. - The company maintains policies to govern the collection and use of personal information in compliance with data protection laws[225]. - Technical and administrative safeguards are utilized to identify and mitigate unauthorized access and cybersecurity threats[226].

Revenue Performance - Record study service revenue of $16.6 million, up approximately 32% year over year[4] - Total revenue of $16.6 million, a decrease of 2.8% compared to $17.0 million in the prior-year period[6] - Oncology revenue for the three months ended January 31, 2026, was $16.559 million, a decrease from $17.039 million in the same period of 2025, representing a decline of approximately 2.8%[29] Expenses and Costs - Cost of oncology revenue increased to $8.8 million, up 33.5% compared to $6.6 million in the same quarter last year[9] - Total costs and operating expenses for the quarter were $16.8 million, an increase of 34.3% compared to $12.5 million in the prior year[7] - Research and development expense increased by 32.1% to $2.3 million compared to $1.7 million in the prior year[10] - Sales and marketing expense rose by 47.6% to $2.7 million compared to $1.8 million in the prior year[10] - The cost of oncology revenue increased to $8.834 million for the three months ended January 31, 2026, compared to $6.617 million in the same period of 2025, indicating a rise of approximately 33.5%[29] - Research and development expenses increased to $2.271 million for the three months ended January 31, 2026, compared to $1.719 million in the same period of 2025, representing a rise of approximately 32.2%[29] Profitability and Earnings - Adjusted EBITDA of $574,000, down from $5.1 million in the same quarter last year[8] - For the three months ended January 31, 2026, the company reported a GAAP basic EPS of $(0.02), compared to $0.33 in the same period of 2025, reflecting a significant decline[28] - The adjusted EPS (diluted, Non-GAAP) for the three months ended January 31, 2026, was $0.04, down from $0.36 in the same period of 2025[28] - The company reported a net loss of $(279) thousand for the three months ended January 31, 2026, compared to a net income of $4.495 million in the same period of 2025[29] Cash Flow and Financial Position - Net cash used in operating activities was approximately $1.4 million for the quarter[11] - The company ended the quarter with cash on hand of approximately $7.1 million and no debt[12] - The company experienced a net cash used in operating activities of $(2.474) million for the nine months ended January 31, 2026, compared to a net cash provided of $518 thousand in the same period of 2025[31] Assets and Liabilities - Total assets decreased to $28.447 million as of January 31, 2026, down from $32.344 million as of April 30, 2025, reflecting a decline of approximately 12.1%[30] - Total liabilities decreased to $24.069 million as of January 31, 2026, compared to $28.572 million as of April 30, 2025, indicating a reduction of approximately 15.7%[30] Margin Analysis - Oncology services margin for the quarter was 47%, down from 61% for the same period last year[9] - The oncology services margin (Non-GAAP) for the three months ended January 31, 2026, was 47%, down from 61% in the same period of 2025[28]

Revenue Performance - BuzzFeed reported full year 2025 revenues of $185.3 million, a decline of 2.4% compared to 2024[5] - In Q4 2025, revenues were $56.5 million, an increase of 0.6% compared to Q4 2024[5] - Total revenue for Q4 2025 was $56.534 million, a 1% increase from $56.195 million in Q4 2024[28] - Advertising revenue decreased by 2.8% year-over-year to $91.7 million, while programmatic advertising grew by 7.4% to $69.6 million[5] - Advertising revenue increased by 1% to $25.559 million in Q4 2025, while total annual advertising revenue decreased by 3% to $91.685 million[28] - Content revenue surged by 56% to $14.715 million in Q4 2025, with annual content revenue rising by 9% to $37.045 million[28] - Commerce and other revenue fell by 24% to $16.260 million in Q4 2025, with a total annual decline of 8% to $56.536 million[28] Profitability and Losses - Net loss from continuing operations was $57.3 million, compared to a net loss of $34.0 million in 2024, including a $30.2 million non-cash goodwill impairment charge[5] - The net loss from continuing operations for Q4 2025 was $26.820 million, compared to a loss of $4.144 million in Q4 2024[32] - For the year ended December 31, 2025, the net loss from continuing operations was $57,334,000, compared to a net loss of $33,956,000 in 2024, indicating a significant increase in losses[35] - The net loss from continuing operations as a percentage of revenue was (30.9)% for 2025, compared to (17.9)% in 2024[38] Cash Flow and Liquidity - Cash and cash equivalents decreased to $8.465 million as of December 31, 2025, down from $22.373 million in 2024[31] - The company reported cash used in operating activities from continuing operations of $18,748,000 for 2025, up from $5,686,000 in 2024[35] - Cash provided by financing activities was $21,590,000 in 2025, a significant recovery from cash used of $154,600,000 in 2024[36] - The cash and cash equivalents at the end of the year were $27,739,000, down from $38,648,000 at the end of 2024[36] Assets and Liabilities - Total assets decreased to $188.139 million in 2025 from $221.398 million in 2024[31] - Total liabilities increased to $138.054 million in 2025, compared to $114.456 million in 2024[31] - The accumulated deficit grew to $679.588 million in 2025 from $621.864 million in 2024[31] - Borrowings from term loans amounted to $43,975,000 in 2025, indicating a reliance on debt financing[36] Operational Metrics - Audience Time Spent with BuzzFeed content totaled 276.5 million hours, reflecting a 7.2% decline compared to 2024[5] - BuzzFeed's largest brand maintained the 1 position in total U.S. time spent, reaching 42.4 million hours in Q4 2025, up 14% from Q3[10] Strategic Outlook - The company is currently exploring strategic options to address liquidity challenges and unlock asset value[2] - BuzzFeed is withholding 2026 financial guidance as it evaluates strategic opportunities[7] Adjusted EBITDA - Adjusted EBITDA improved by 61.4% to $8.8 million for the full year, an increase of $3.3 million from 2024[5] - Adjusted EBITDA improved by 9% to $11.954 million in Q4 2025, and increased by 61% to $8.797 million for the full year[28] - Adjusted EBITDA for the year ended December 31, 2025, was $8,797,000, with an adjusted EBITDA margin of 4.7%, compared to $5,451,000 and 2.9% in 2024[38] Capital Expenditures - The company reported capital expenditures of $1,958,000 in 2025, compared to $691,000 in 2024, indicating increased investment in assets[36] Impairment Charges - The company incurred an impairment expense of $30,199,000 in 2025, reflecting a non-cash goodwill impairment[39]

Financial Performance - Fourth quarter net sales reached $115.6 million, a 13.7% increase from $101.6 million in the prior-year quarter[7] - Net income for the fourth quarter increased 22.8% to $7.2 million, resulting in a net income margin of 6.2%, up from 5.8% in the prior-year quarter[12] - Full-year net sales for 2025 increased 10.7% to $467.7 million, driven by a $39.7 million increase in volume[15] - Net income for the full year increased 6.0% to $32.7 million, with a net income margin of 7.0%[20] - Net sales for Q4 2025 reached $115.617 million, a 13.8% increase from $101.649 million in Q4 2024[28] - Operating income for Q4 2025 was $8.471 million, compared to $7.300 million in Q4 2024, representing a 16% increase[28] - Net income attributable to Karat Packaging Inc. for the year ended December 31, 2025, was $31.478 million, an increase from $29.975 million in 2024[28] - For the year ended December 31, 2025, consolidated net income was $32.664 million, with Karat Packaging contributing $31.464 million[36] Profitability Metrics - Gross profit for the fourth quarter was $39.3 million, with a gross margin of 34.0%, down from 39.2% in the prior-year quarter due to elevated tariffs[10] - Gross margin for the full year was 36.8%, down from 38.9% the previous year, impacted by rising freight and duty costs[17] - Gross profit for the year ended December 31, 2025, was $172.136 million, up from $164.329 million in 2024, reflecting a gross margin of 36.7%[28] - Adjusted EBITDA for the fourth quarter was $12.5 million, with an adjusted EBITDA margin of 10.8%, compared to 11.1% in the prior-year quarter[13] - Adjusted EBITDA for Q4 2025 was $12.498 million, with an EBITDA margin of 10.8%[34] - Adjusted EBITDA for the year ended December 31, 2025, was $55.154 million, with Karat Packaging accounting for $51.361 million[36] - The adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by net sales, providing insight into operational efficiency[41] Expenses and Costs - Operating expenses for the full year were $130.7 million, an increase from $126.6 million the previous year, primarily due to higher shipping and transportation costs[18] - The company incurred secondary offering transaction costs of $214,000 in 2025, impacting the adjusted EBITDA calculation[36] - The impairment of operating right-of-use asset was $1.993 million for the year ended December 31, 2024, affecting the adjusted EBITDA[37] Cash Flow and Assets - Cash and cash equivalents increased to $37.880 million as of December 31, 2025, compared to $31.584 million in 2024[32] - Total assets decreased to $287.686 million in 2025 from $294.522 million in 2024[32] - The company reported net cash provided by operating activities of $33.815 million for the year ended December 31, 2025[32] - Free Cash Flow for the year ended December 31, 2025, was $29.310 million, compared to $43.914 million for the previous year[38] Future Outlook - The company expects first quarter 2026 net sales to increase by 8% to 10% compared to the prior-year quarter[7] - A quarterly dividend of $0.45 per share was approved, payable on or about February 27, 2026[22] Reclassifications and Adjustments - The company reclassified approximately $1.064 million in net sales from retail to chains and distributors for Q4 2024, with no effect on previously reported sales[30] Non-GAAP Measures - The company emphasizes the use of non-GAAP financial measures to provide clarity on financial performance and liquidity[39]